Phillips 66 (PSX) Stock Analysis

Analysis from 10-Q filed 2025-10-29. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 27.8%. FCF margin 5.9%. D/E 0.7x. Source: 10-Q filed 2025-10-29.

Metric	Value	Context
ROIC	27.8%	Above industry average
FCF Margin	5.9%	Healthy cash flow
Debt/Equity	0.7x	Moderate leverage

ROIC 27.8% — Top 5% of sector peers. FCF margin 5.9% — Bottom 50%.

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.

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

ROIC TTM 27.8%, sector median 7.3%, Top 5%. DuPont: NOPAT margin 9.3% × asset turnover 1.9x. Gross margin 13.1%. Operating margin 11.5%. Source: 10-Q filed 2025-10-29.

Metric	PSX	Rating	Context
Return on Invested Capital (ROIC)	27.8%	Excellent	Above sector median of 7.3%
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

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Cash Flow: Phillips 66 generates $8.9B FCF at 5.9% margin, positive NaN/8 quarters

FCF TTM $8.9B. FCF margin 5.9%, Bottom 50%. OCF/Net income 1.3x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-29.

Metric	PSX	Rating	Context
Free Cash Flow Margin	5.9%	Adequate	Healthy cash generation
Free Cash Flow (TTM)	$8.9B	Good	Positive cash generation
OCF/Net Income	1.3x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: Phillips 66 at 0.7x leverage

Debt/Equity 0.7x. Total debt $20.6B, cash & investments $4.1B. Source: 10-Q filed 2025-10-29.

Metric	PSX	Rating	Context
Debt to Equity	0.7x	Good	Moderate leverage
Net Cash Position	$-16.5B	Warning	Net debt position

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Valuation: Phillips 66 trades at 9.6x earnings

P/E 9.6x. EV/Sales 0.5x. FCF yield 13.1%. Dividend yield 2.9%. Source: 10-Q filed 2025-10-29.

Metric	PSX	Rating	Context
P/E Ratio	9.6x	Adequate	Reasonable valuation
EV/Sales	0.5x	Excellent	Attractive revenue multiple
FCF Yield	13.1%	Excellent	Attractive cash return
Dividend Yield	2.9%	Adequate	Growth focus over income

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Capital Allocation: Phillips 66 returns 4.7% shareholder yield

Total shareholder yield 4.7% (div 2.9% + buyback 1.7%). Capital returned $3.2B TTM. Source: 10-Q filed 2025-10-29.

Metric	PSX	Rating	Context
Total Shareholder Yield	4.7%	Good	Dividend + buyback yield combined
Buyback Yield	1.7%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$3.2B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	27.8%	Top 5%	3.8x above
Free Cash Flow Margin	5.9%	Bottom 50%	0.5x below
Gross Margin	13.1%	Bottom 25%	0.4x below
Operating Margin	11.5%	Top 50%	1.0x at
Return on Equity (ROE)	24.9%	Top 25%	2.4x above
P/E Ratio	9.6x	N/A	-

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Financial Scorecard

Metric	PSX	Rating	Sector Context
Return on Invested Capital (ROIC)	27.8%	Excellent	Top 5% of sector (median: 7.3%)
Free Cash Flow Margin	5.9%	Adequate	Bottom 50% of sector (median: 12.3%)
Gross Margin	13.1%	Warning	Bottom 25% of sector (median: 31.5%)
Debt to Equity Ratio	65.3%	Good	Moderate leverage
P/E Ratio (Price-to-Earnings)	961.4%	Adequate	Attractively valued
Free Cash Flow Yield	13.1%	Excellent	High cash return

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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%. Sector median 7.3%. Source: 10-Q filed 2025-10-29.

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

Phillips 66 (PSX) has a free cash flow margin of 5.9%, generating $8.9 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-29.

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 9.6x, which is above the sector median of N/A. EV/Sales 0.5x. FCF yield 13.1%. Source: 10-Q filed 2025-10-29.

Q: Does Phillips 66 pay a dividend?

Phillips 66 (PSX) currently pays a dividend yield of 2.9%. Total shareholder yield (dividend + buybacks) 4.7%. Source: 10-Q filed 2025-10-29.

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. Net debt $16.5 billion. Source: 10-Q filed 2025-10-29.

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 2025-10-29.

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 1.7%. Source: 10-Q filed 2025-10-29.

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 7.3% (Top 5%). FCF margin 5.9%, sector median 12.3% (Bottom 50%). Gross margin 13.1%, 18.4pp 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 2025-10-29.

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Data Source: Data sourced from 10-Q filed 2025-10-29. 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.