Phillips 66 (PSX) Stock Analysis

Analysis from 10-Q filed 2026-08-05. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 27.8%. D/E 0.7x. Source: 10-Q filed 2026-08-05.

Metric	Value	Context
ROIC	27.8%	Above industry average
Debt/Equity	0.7x	Moderate leverage

ROIC 27.8% — Top 5% of sector peers.

Explore Phillips 66: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for PSX: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

---

Profitability: Phillips 66 earns 27.8% ROIC, Top 5% in Energy

ROIC TTM 27.8%, sector median 7.1%, Top 5%. DuPont: NOPAT margin 9.3% × asset turnover 1.9x. Gross margin 13.1%. Operating margin 11.5%. Source: 10-Q filed 2026-08-05.

Metric	PSX	Rating	Context
Return on Invested Capital (ROIC)	27.8%	Excellent	Above sector median of 7.1%
Return on Equity (ROE)	24.9%	Excellent	Efficient use of shareholder equity
Gross Margin	13.1%	Warning	Competitive pricing environment
Operating Margin	11.5%	Good	Moderate operational efficiency

---

Cash Flow Analysis for Phillips 66

OCF/Net income 1.3x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2026-08-05.

Metric	PSX	Rating	Context
OCF/Net Income	1.3x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

---

Balance Sheet: Phillips 66 at 0.7x leverage, 15.2x interest coverage

Debt/Equity 0.7x. Total debt $20.6B, cash & investments $4.1B. Interest coverage 15.2x. Source: 10-Q filed 2026-08-05.

Metric	PSX	Rating	Context
Debt to Equity	0.7x	Good	Moderate leverage
Net Cash Position	$-16.5B	Warning	Net debt position
Interest Coverage	15.2x	Excellent	Comfortable debt service

---

Valuation: Phillips 66 trades at 14.5x earnings

P/E 14.5x. EV/Sales 0.8x. Dividend yield 1.9%. Source: 10-Q filed 2026-08-05.

Metric	PSX	Rating	Context
P/E Ratio	14.5x	Adequate	Reasonable valuation
EV/Sales	0.8x	Excellent	Attractive revenue multiple
Dividend Yield	1.9%	Adequate	Growth focus over income

---

Capital Allocation: Phillips 66 returns 3.1% shareholder yield, reducing shares 1.3% YoY

Total shareholder yield 3.1% (div 1.9% + buyback 1.2%). Share count -1.3% YoY. Capital returned $3.2B TTM. Source: 10-Q filed 2026-08-05.

Metric	PSX	Rating	Context
Total Shareholder Yield	3.1%	Good	Dividend + buyback yield combined
Buyback Yield	1.2%	Adequate	Minimal buyback activity
Share Count Change (YoY)	-1.3%	Good	Net share reduction (accretive)
Total Capital Returned (TTM)	$3.2B	Good	Dividends + buybacks returned to shareholders

---

Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	27.8%	Top 5%	3.9x above
Gross Margin	13.1%	Bottom 25%	0.4x below
Operating Margin	11.5%	Top 50%	1.1x above
Return on Equity (ROE)	24.9%	Top 25%	2.3x above
P/E Ratio	14.5x	N/A	-

---

Financial Scorecard

Metric	PSX	Rating	Sector Context
Return on Invested Capital (ROIC)	27.8%	Excellent	Top 5% of sector (median: 7.1%)
Gross Margin	13.1%	Warning	Bottom 25% of sector (median: 31.8%)
Debt to Equity Ratio	65.3%	Good	Moderate leverage
P/E Ratio (Price-to-Earnings)	14.5x	Adequate	Attractively valued

---

Frequently Asked Questions

Q: What is Phillips 66's Return on Invested Capital (ROIC)?

Phillips 66 (PSX) has a trailing twelve-month Return on Invested Capital (ROIC) of 27.8%. The 8-quarter median ROIC is 20.5% with a improving trend. Sector median 7.1%. Source: 10-Q filed 2026-08-05.

Q: What is Phillips 66's Free Cash Flow Margin?

Phillips 66 (PSX) has a free cash flow margin of N/A, Source: 10-Q filed 2026-08-05.

Q: What is Phillips 66's P/E ratio and how does it compare to peers?

Phillips 66 (PSX) trades at a P/E ratio of 14.5x, which is above the sector median of N/A. EV/Sales 0.8x. Source: 10-Q filed 2026-08-05.

Q: Does Phillips 66 pay a dividend?

Phillips 66 (PSX) currently pays a dividend yield of 1.9%. Total shareholder yield (dividend + buybacks) 3.1%. Source: 10-Q filed 2026-08-05.

Q: How much debt does Phillips 66 have?

Phillips 66 (PSX) has a debt-to-equity ratio of 0.7x with total debt of $20.6 billion. Interest coverage 15.2x. Net debt $16.5 billion. Source: 10-Q filed 2026-08-05.

Q: What is Phillips 66's revenue and earnings growth?

Phillips 66 (PSX) grew revenue by 14.4% year-over-year. EPS +321.7% YoY. Source: 10-Q filed 2026-08-05.

Q: Is Phillips 66 buying back stock?

Phillips 66 (PSX) repurchased $1.2 billion of stock over the trailing twelve months. This represents a buyback yield of 1.2%. Share count -1.3% YoY. Source: 10-Q filed 2026-08-05.

Q: How does Phillips 66 compare to competitors in Energy?

Compared to other companies in Energy, Phillips 66 (PSX) shows: ROIC 27.8%, sector median 7.1% (Top 5%). Gross margin 13.1%, 18.7pp below sector median. These rankings are based on MetricDuck's analysis of all Energy companies with available SEC filings.

Q: What warning signs should I watch for with Phillips 66?

No quantitative warning flags fired for Phillips 66 (PSX) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2026-08-05.

---

Data Source: Data sourced from 10-Q filed 2026-08-05. TTM metrics as of Q2 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.