Phillips 66 (PSX) Stock Analysis

Analysis from 10-Q filed 2025-10-29. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 24.4%. FCF margin 1.9%. D/E 1.0x. Source: 10-Q filed 2025-10-29.

Metric	Value	Context
ROIC	24.4%	Above industry average
FCF Margin	1.9%	Cash flow pressure
Debt/Equity	1.0x	Moderate leverage

ROIC 24.4% — Top 5% of sector peers. FCF margin 1.9% — 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 24.4% ROIC, Top 5% in Energy

ROIC TTM 24.4%, sector median 6.2%, Top 5%. DuPont: NOPAT margin 8.9% × asset turnover 1.8x. Gross margin 12.5%. Operating margin 10.7%. Source: 10-Q filed 2025-10-29.

Metric	PSX	Rating	Context
Return on Invested Capital (ROIC)	24.4%	Excellent	Above sector median of 6.2%
Return on Equity (ROE)	14.8%	Adequate	Moderate equity returns
Gross Margin	12.5%	Warning	Competitive pricing environment
Operating Margin	10.7%	Good	Moderate operational efficiency

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Cash Flow: Phillips 66 generates $2.5B FCF at 1.9% margin, positive NaN/8 quarters

FCF TTM $2.5B. FCF margin 1.9%, Bottom 50%. OCF/Net income 0.6x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-29.

Metric	PSX	Rating	Context
Free Cash Flow Margin	1.9%	Warning	Thin cash margins
Free Cash Flow (TTM)	$2.5B	Good	Positive cash generation
OCF/Net Income	0.6x	Adequate	Potential accrual concerns
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: Phillips 66 at 1.0x leverage

Debt/Equity 1.0x. Total debt $27.1B, cash & investments $5.2B. Source: 10-Q filed 2025-10-29.

Metric	PSX	Rating	Context
Debt to Equity	1.0x	Adequate	Moderate leverage
Net Cash Position	$-22.0B	Warning	Net debt position

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Valuation: Phillips 66 trades at 17.9x earnings

P/E 17.9x. EV/Sales 0.7x. FCF yield 3.4%. Dividend yield 2.7%. Source: 10-Q filed 2025-10-29.

Metric	PSX	Rating	Context
P/E Ratio	17.9x	Adequate	Reasonable valuation
EV/Sales	0.7x	Excellent	Attractive revenue multiple
FCF Yield	3.4%	Adequate	Lower cash yield
Dividend Yield	2.7%	Adequate	Growth focus over income

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Capital Allocation: Phillips 66 returns 4.3% shareholder yield

Total shareholder yield 4.3% (div 2.7% + buyback 1.7%). Capital returned $3.2B TTM. Source: 10-Q filed 2025-10-29.

Metric	PSX	Rating	Context
Total Shareholder Yield	4.3%	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)	24.4%	Top 5%	3.9x above
Free Cash Flow Margin	1.9%	Bottom 50%	0.2x below
Gross Margin	12.5%	Bottom 25%	0.5x below
Operating Margin	10.7%	Top 50%	1.1x above
Return on Equity (ROE)	14.8%	Top 50%	1.8x above
P/E Ratio	17.9x	N/A	-

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Financial Scorecard

Metric	PSX	Rating	Sector Context
Return on Invested Capital (ROIC)	24.4%	Excellent	Top 5% of sector (median: 6.2%)
Free Cash Flow Margin	1.9%	Warning	Bottom 50% of sector (median: 8.5%)
Gross Margin	12.5%	Warning	Bottom 25% of sector (median: 23.3%)
Debt to Equity Ratio	95.1%	Adequate	Elevated but manageable
P/E Ratio (Price-to-Earnings)	17.9x	Adequate	Fair value
Free Cash Flow Yield	3.4%	Adequate	Moderate yield

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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 24.4%. Sector median 6.2%. 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 1.9%, generating $2.5 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 17.9x, which is above the sector median of N/A. EV/Sales 0.7x. FCF yield 3.4%. Source: 10-Q filed 2025-10-29.

Q: Does Phillips 66 pay a dividend?

Phillips 66 (PSX) currently pays a dividend yield of 2.7%. Total shareholder yield (dividend + buybacks) 4.3%. 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 1.0x with total debt of $27.1 billion. Net debt $22.0 billion. Source: 10-Q filed 2025-10-29.

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

Phillips 66 (PSX) declined revenue by 2.4% year-over-year. EPS +128.4% 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 24.4%, sector median 6.2% (Top 5%). FCF margin 1.9%, sector median 8.5% (Bottom 50%). Gross margin 12.5%, 10.7pp 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?

Quantitative warning flags for Phillips 66 (PSX): 1) FCF margin 1.9% (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 Q1 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.