Phillips 66 (PSX) is a publicly traded company in the Energy — Oil & Gas Refining & Marketing industry listed on NYSE. This overview shows the latest price, key valuation ratios, profitability metrics and financial-health indicators used by fundamental investors.
Phillips 66 operates as a diversified energy company, specializing in both manufacturing and logistics. Its comprehensive business model is structured across four primary segments: Midstream, Chemicals, Refining, and Marketing & Specialties (M&S). The Midstream division manages the vital infrastructure for transporting and processing various energy commodities.
Is Phillips 66 stock overvalued or undervalued in 2026?
As of October 5, 2026, Phillips 66 (PSX) trades at 15.1× earnings (P/E), against a median of 16.8× across the 149 energy companies above $2bn in Kaplio's universe. No valuation verdict: it is a cyclical and today's P/E (15.1) does not tell whether it is cheap.
Kaplio overview: Phillips 66
Market cap $106B · 52 weeks $127 – $274 (7 % below the high) · P/E 15.1× · 2027 expected P/E 9.9× · Dividend 1.9 % · 11 years rising · Next earnings October 28, 2026 · expected EPS $10.86 · Price as of Oct 5 · accounts published Aug 5.
- Valuation: P/E 15.1× (no verdict).
- Business: 5-year ROIC 6.7 % (weak).
- Balance sheet: Net debt/EBITDA 2.2× (fragile).
- Earnings: 6 of 8 (on track).
What would it be worth at its usual multiples?
No valuation verdict: it is a cyclical and today's P/E (15.1) does not tell whether it is cheap.
In cyclicals the P/E misleads; on its average earnings over 10 years it trades at 32.9 times.
What matters in energy: 4 of 8 pass
- FCF yield 4.7 %, fails.
- 5y avg ROIC 6.7 %, fails.
- Net debt / EBITDA 2.2×, fails.
- Capex / Revenue 1.7 %, fails.
- Positive FCF through the cycle 9 de 10 ejercicios, passes.
- Dividend coverage (FCF / div) 1.4×, passes.
- Inverse P/E in cyclicals 15.1×, passes.
- EV/EBITDA vs own 10y 7.6×, passes.
Against its peers (reference peers) — Phillips 66: P/E 15.1×; EV/EBITDA 7.6×; ROIC 4.8 %; $106B. Valero Energy Corporation (P/E 16.9×; EV/EBITDA 9.1×; ROIC 16.5 %; $117B), Marathon Petroleum Corporation (P/E 14.5×; EV/EBITDA 8.6×; ROIC 14.2 %; $123B), Suncor Energy Inc. (P/E 13.2×; EV/EBITDA 5.5×; ROIC 14.2 %; $81.6B).
Dividend
solid · Yield 1.89 % ($4.73 per share in 2025) · Years raising it ≥ 11 · 5-year growth +6 % a year · Free cash flow coverage 1.7× · With $1,000 invested today you'd collect $18.90 a year ($1.57 a month).
Kaplio's reading: Phillips 66
Updated on September 27, 2026 · accounts published on August 5, 2026
Reading of September 27, 2026: A cyclical business in a strong-margin year
The stock trades at a P/E of 14.6× over the last 12 months, 18 % below its ten-year average of 17.8×, after an 88 % rise in a year.
- Is the stock expensive or cheap? The P/E sits 15 % below the sector median and 18 % below its own ten-year average of 17.8×.
- How is the business doing? Operating margin of 6.7 % over the last 12 months, well above the 2.7 % it averaged in fiscal 2014-2025.
- How strong is the balance sheet? Net debt of $56.17 per share in fiscal 2025, 22 % of the price, and 11 straight years of dividend increases.
- Does it generate cash through the cycle and cover the dividend? Free cash flow covered the dividend 1.4× in fiscal 2025, above the 1.2× healthy mark for energy.
- What to expect from the next earnings? Analysts expect EPS of $10.86 in the quarter reported on October 28, 2026; the 2026 EPS consensus rose 4.1 % in 12 days.
Is the stock expensive or cheap?
Over the last 12 months the stock trades at a P/E of 14.6×. That is 18 % below its decade average of 17.8× and 15 % below the 17.2× median of its sector. It looks cheap, but the P/E has moved widely: the quarterly figure ranged from 4.4× to 45.3× over ten years, and in 54 % of those quarters it was lower than today. Against its five-year average of 14.4× the P/E is neutral, and the EV/EBITDA of 9.3× is close to its nine-year average of 8.9×. After an 88 % rise in 12 months, the price is 7 % below its 52-week high of $274.21.
How is the business doing?
Profits are growing much faster than sales. Over the last 12 months revenue fell 7.6 % while EPS rose 116 %, which lifted the operating margin to 6.7 %. That compares with a 2.7 % average across fiscal 2014-2025 and the same 2.7 % in fiscal 2025. Net margin is 4.6 % and ROE 24.4 %. ROIC of 12.7 % beats the 7.1 % sector median by 5.6 points, yet it cleared 10 % in only 2 of the last 10 fiscal years and fell to −3.0 % in 2020. On that record, margins like today's have been the exception.
How strong is the balance sheet?
The debt is manageable, though not light. Net debt came to $56.17 per share in fiscal 2025, equal to 22 % of the current price, and debt to equity is 0.65 over the last 12 months. An Altman Z of 3.4 is in the safe zone and the Piotroski score is 7 of 9, both signs of a sound footing, while a current ratio of 1.32 covers short-term obligations. The dividend yields 2.0 % over the last 12 months and has risen for 11 consecutive fiscal years. It took 44 % of earnings in fiscal 2025, a payout that leaves room.
Does it generate cash through the cycle and cover the dividend?
In energy, earnings follow the price of crude, so one good year says little. What counts is cash across the whole cycle and a dividend that survives the bad years. Free cash flow was positive in 9 of the last 10 fiscal years, above the 8-in-10 bar, and covered the dividend 1.4× in fiscal 2025 against a healthy 1.2×. The weaker side: a free cash flow yield of 4.8 % over the last 12 months versus a healthy 8 %, a five-year average ROIC of 6.7 % versus 10 %, and net debt of 2.2× EBITDA in fiscal 2025, above the 2× limit.
What to expect from the next earnings?
Expectations are rising ahead of the next report. The 2026 EPS consensus climbed 4.1 % in the last 12 days, from $26.93 to $28.03 across 10 analysts, and the 2026 revenue estimate rose 1.0 %. The company has beaten EPS estimates in 6 of the last 8 quarters, and on August 5, 2026 it reported $9.41 against $7.50 expected. For the quarter due on October 28, 2026, analysts look for EPS of $10.86. Of the 35 analysts covering the stock, 20 rate it a buy, 13 a hold and 2 a sell, so the bar for another beat has moved higher.
How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.
Profitability
| Return on Equity | 15.13% |
| Return on Invested Capital | 4.75% |
| Return on Assets | 5.98% |
| Gross Margin | 9.78% |
| Operating Margin | 6.67% |
| Net Margin | 4.62% |
Financial Health
| Debt / Equity | 0.65 |
| Current Ratio | 1.32 |
| Piotroski F-Score | 7 |
| Altman Z-Score | 3.37 |
Price Performance
| 1 month | +3.73% |
| 3 months | +40.89% |
| Year-to-date | +105.05% |
| 1 year | +99.07% |
| 3 years | +142.33% |
| 5 years | +233.67% |
Dividend History
Paid in the last 12 months: $5.0100 per share in 4 payments.
| Date | Amount |
|---|---|
| 2026-08-18 | $1.2700 |
| 2026-05-18 | $1.2700 |
| 2026-02-23 | $1.2700 |
| 2025-11-17 | $1.2000 |
| 2025-08-19 | $1.2000 |
| 2025-05-19 | $1.2000 |
| 2025-02-24 | $1.1500 |
| 2024-11-18 | $1.1500 |
| 2024-08-20 | $1.1500 |
| 2024-05-17 | $1.1500 |
Amounts adjusted for stock splits.
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Explore sector: Energy · Oil & Gas Refining & Marketing
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