Phillips 66 (PSX) Stock Analysis

Analysis from 10-Q filed 2025-10-29. Data as of Q4 2025.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 24.1%. FCF margin 3.7%. D/E 0.7x. Source: 10-Q filed 2025-10-29.

Metric	Value	Context
ROIC	24.1%	Above industry average
FCF Margin	3.7%	Cash flow pressure
Debt/Equity	0.7x	Moderate leverage

ROIC 24.1% — Top 10% of sector peers. FCF margin 3.7% — Bottom 50%.

Explore Phillips 66: Earnings History | Filings | ROIC Analysis

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 24.1% ROIC, Top 10% in Energy

ROIC TTM 24.1%, sector median 6.7%, Top 10%. DuPont: NOPAT margin 8.7% × asset turnover 1.8x. Gross margin 12.3%. Operating margin 10.5%. Source: 10-Q filed 2025-10-29.

Metric	PSX	Rating	Context
Return on Invested Capital (ROIC)	24.1%	Excellent	Above sector median of 6.7%
Return on Equity (ROE)	16.0%	Good	Efficient use of shareholder equity
Gross Margin	12.3%	Warning	Competitive pricing environment
Operating Margin	10.5%	Good	Moderate operational efficiency

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Cash Flow: Phillips 66 generates $5.0B FCF at 3.7% margin, positive NaN/8 quarters

FCF TTM $5.0B. FCF margin 3.7%, Bottom 50%. OCF/Net income 1.1x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-29.

Metric	PSX	Rating	Context
Free Cash Flow Margin	3.7%	Warning	Thin cash margins
Free Cash Flow (TTM)	$5.0B	Good	Positive cash generation
OCF/Net Income	1.1x	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 $19.7B, cash & investments $1.1B. Source: 10-Q filed 2025-10-29.

Metric	PSX	Rating	Context
Debt to Equity	0.7x	Good	Moderate leverage
Net Cash Position	$-18.6B	Warning	Net debt position

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Valuation: Phillips 66 trades at 11.9x earnings

P/E 11.9x. EV/Sales 0.5x. FCF yield 9.5%. Dividend yield 3.7%. Source: 10-Q filed 2025-10-29.

Metric	PSX	Rating	Context
P/E Ratio	11.9x	Adequate	Reasonable valuation
EV/Sales	0.5x	Excellent	Attractive revenue multiple
FCF Yield	9.5%	Excellent	Attractive cash return
Dividend Yield	3.7%	Adequate	Meaningful income

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Capital Allocation: Phillips 66 returns 6.0% shareholder yield

Total shareholder yield 6.0% (div 3.7% + buyback 2.3%). Capital returned $3.1B TTM. Source: 10-Q filed 2025-10-29.

Metric	PSX	Rating	Context
Total Shareholder Yield	6.0%	Good	Dividend + buyback yield combined
Buyback Yield	2.3%	Adequate	Active share repurchases
Total Capital Returned (TTM)	$3.1B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	24.1%	Top 10%	3.6x above
Free Cash Flow Margin	3.7%	Bottom 50%	0.5x below
Gross Margin	12.3%	Bottom 25%	0.4x below
Operating Margin	10.5%	Top 50%	1.1x above
Return on Equity (ROE)	16.0%	Top 50%	1.8x above
P/E Ratio	11.9x	N/A	-

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Financial Scorecard

Metric	PSX	Rating	Sector Context
Return on Invested Capital (ROIC)	24.1%	Excellent	Top 10% of sector (median: 6.7%)
Free Cash Flow Margin	3.7%	Warning	Bottom 50% of sector (median: 7.6%)
Gross Margin	12.3%	Warning	Bottom 25% of sector (median: 31.9%)
Debt to Equity Ratio	67.8%	Good	Moderate leverage
P/E Ratio (Price-to-Earnings)	11.9x	Adequate	Attractively valued
Free Cash Flow Yield	9.5%	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 24.1%. Sector median 6.7%. 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 3.7%, generating $5.0 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 11.9x, which is above the sector median of N/A. EV/Sales 0.5x. FCF yield 9.5%. Source: 10-Q filed 2025-10-29.

Q: Does Phillips 66 pay a dividend?

Phillips 66 (PSX) currently pays a dividend yield of 3.7%. Total shareholder yield (dividend + buybacks) 6.0%. 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 $19.7 billion. Net debt $18.6 billion. Source: 10-Q filed 2025-10-29.

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

Phillips 66 (PSX) declined revenue by 7.5% year-over-year. EPS +116.5% 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 2.3%. 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 24.1%, sector median 6.7% (Top 10%). FCF margin 3.7%, sector median 7.6% (Bottom 50%). Gross margin 12.3%, 19.6pp 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?

Quantitative warning flags for Phillips 66 (PSX): 1) FCF margin 3.7% (below 5%). 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 Q4 2025.

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.