NYSE · Energy

Phillips 66

PSX · Oil & Gas Refining & Marketing

$177.64

▲ 1.45 (0.82%)

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Mr. Market is currently offering Phillips 66 at $177.64.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

Overall Grade

Defensive

Enterprising

Profitability F

Gross Profit Margin 9.8%

Operating Margin 2.6%

Net Income Margin 3.3%

Fin. Health C

Years to Pay Off Debt 4.5 yrs

Working Capital vs Long-Term Debt -$14.7B

Working Capital $3.9B

Valuation F

Margin of Safety 0.0%

Price-to-Book 2.45x

Cash Flow C

Free Cash Flow $2.7B

CapEx % of Net Income 50.7%

Owner Earnings $9.9B

3/7

Graham Score

Speculative

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $71.2B

Enterprise Value $93.8B

P/E (TTM) 17.57

Dividend Yield 2.76%

Exchange NYSE

Key Margins

Gross Profit 9.8%

Operating Margin 2.6%

Net Margin 3.3%

Company Info

Sector Energy

Industry Oil & Gas Refining & Marketing

Employees 12600

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Phillips 66 at $177.64.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $177.64, the stock trades at a 34% premium to its Graham Number of $132.73. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

About Phillips 66

Phillips 66 operates as an integrated downstream energy provider in the United States, the United Kingdom, Germany, and internationally. It operates through five segments: Midstream, Chemicals, Refining, Marketing and Specialties (M&S), and Renewable Fuels. The Midstream segment provides crude oil and refined petroleum product transportation, terminaling, and storage services, as well as natural gas and natural gas liquids (NGL) gathering, processing, transportation, fractionation, storage and marketing services. It also exports liquefied petroleum gas. The Chemicals segment produces and markets ethylene and other olefin products; aromatics and styrenics products, such as benzene, cyclohexane, styrene, and polystyrene; various specialty chemical products, including organosulfur chemicals, solvents, catalysts, and chemicals used in drilling and mining; and petrochemicals and plastics. The Refining segment refines crude oil and other feedstocks into petroleum products, such as gasolines and distillates, including aviation fuels. The M&S segment purchases for resale and markets refined products, including gasolines, distillates, and aviation fuels. This segment also manufactures and markets specialty products, such as automotive, commercial, industrial, and specialty lubricants, as well as base oils. The Renewable Fuels segment processes renewable feedstocks into renewable products, as well as supplies sustainable aviation fuel. This segment also procures renewable feedstocks, manages certain regulatory credits, and markets renewable diesel, renewable jet fuel, and other renewable fuels. The company markets its products under the Phillips 66, Conoco and 76, JET, Kendall, Red Line, and other private label brands. Phillips 66 was founded in 1875 and is headquartered in Houston, Texas.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022	2021
Gross Profit %	9.8% ▲	7.6%	11.8%	10.8%	N/A
Operating Margin %	2.6% ▲	1.2%	5.4%	5.7%	N/A
Net Income %	3.3% ▲	1.5%	4.8%	6.5%	N/A
Diluted EPS	10.79 ▲	4.99	15.48	23.27	N/A

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$73.7B	$72.6B	$75.5B	$76.4B	N/A
Total Debt	$19.7B ↓	$20.1B	$19.4B	$17.2B	N/A
Working Capital	$3.9B ▲	$2.8B	$4.1B	$6.0B	N/A
Years to Pay Debt	4.48	9.48	2.76	1.56	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022
Free Cash Flow	$2.7B ▲	$2.3B	$4.9B	$8.9B
Owner Earnings	$9.9B	$6.3B	$11.1B	$14.5B
CapEx % of Net Income	50.7%	87.8%	30.7%	17.1%

Income Statement

	2025	2024	2023	2022	2021
Tax Effect Of Unusual Items	328,658	-18,318	30,680	580,198
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	7,760,000	6,083,000	12,242,000	14,295,000
Total Unusual Items	1,997,000	-98,000	130,000	2,615,000
Total Unusual Items Excluding Goodwill	1,997,000	-98,000	130,000	2,615,000
Net Income From Continuing Operation Net Minority Interest	4,403,000	2,117,000	7,015,000	11,024,000
Reconciled Depreciation	3,251,000	2,363,000	1,977,000	1,629,000
Reconciled Cost Of Revenue	119,344,000	132,325,000	130,063,000	151,561,000
EBITDA	9,757,000	5,985,000	12,372,000	16,910,000
EBIT	6,506,000	3,622,000	10,395,000	15,281,000
Net Interest Income	-945,000	-789,000	-657,000	-560,000
Interest Expense	1,086,000	947,000	926,000	642,000
Interest Income	141,000	158,000	269,000	82,000
Normalized Income	2,734,658	2,196,682	6,915,680	8,989,198
Net Income From Continuing And Discontinued Operation	4,403,000	2,117,000	7,015,000	11,024,000
Total Expenses	128,995,000	141,407,000	139,449,000	160,370,000
Diluted Average Shares	408,053	421,888	453,210	473,731
Basic Average Shares	406,008	420,174	450,136	471,497
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	4,401,000	2,107,000	7,004,000	11,014,000
Average Dilution Earnings	7,000			10,000	0
Net Income Common Stockholders	4,394,000	2,107,000	7,004,000	11,014,000
Otherunder Preferred Stock Dividend	9,000	10,000	11,000	10,000
Net Income	4,403,000	2,117,000	7,015,000	11,024,000
Minority Interests	-125,000	-58,000	-224,000	-367,000
Net Income Including Noncontrolling Interests	4,528,000	2,175,000	7,239,000	11,391,000
Net Income Continuous Operations	4,528,000	2,175,000	7,239,000	11,391,000
Tax Provision	892,000	500,000	2,230,000	3,248,000
Pretax Income	5,420,000	2,675,000	9,469,000	14,639,000
Other Income Expense	2,984,000	1,718,000	2,176,000	5,579,000
Other Non Operating Income Expenses	225,000	37,000	29,000	-4,000
Special Income Charges	1,924,000	-135,000	91,000	2,960,000
Gain On Sale Of Ppe	2,984,000	321,000	115,000	7,000
Write Off	1,060,000	456,000	24,000	60,000
Impairment Of Capital Assets			10,000	13,000	1,288,000
Restructuring And Mergern Acquisition		0	0	-3,013,000	0
Earnings From Equity Interest	762,000	1,779,000	2,017,000	2,968,000
Gain On Sale Of Security	73,000	37,000	39,000	-345,000
Net Non Operating Interest Income Expense	-945,000	-789,000	-657,000	-560,000
Interest Expense Non Operating	1,086,000	947,000	926,000	642,000
Interest Income Non Operating	141,000	158,000	269,000	82,000
Operating Income	3,381,000	1,746,000	7,950,000	9,620,000
Operating Expense	9,651,000	9,082,000	9,386,000	8,809,000
Other Operating Expenses	6,423,000	5,939,000	6,154,000	6,111,000
Other Taxes	791,000	329,000	707,000	530,000
Selling General And Administration	2,437,000	2,814,000	2,525,000	2,168,000
Gross Profit	13,032,000	10,828,000	17,336,000	18,429,000
Cost Of Revenue	119,344,000	132,325,000	130,063,000	151,561,000
Total Revenue	132,376,000	143,153,000	147,399,000	169,990,000
Operating Revenue	132,376,000	143,153,000	147,399,000	169,990,000

Balance Sheet

	2025	2024	2023	2022	2021
Treasury Shares Number	258,253	248,595	224,377	186,530
Ordinary Shares Number	401,139	408,393	430,465	465,844
Share Issued	659,391	656,988	654,842	652,374
Net Debt	18,600,000	18,324,000	16,036,000	11,057,000
Total Debt	19,716,000	20,062,000	19,359,000	17,190,000
Tangible Book Value	26,683,000	24,672,000	28,113,000	27,177,000
Invested Capital	48,809,000	47,470,000	49,942,000	46,684,000
Working Capital	3,945,000	2,823,000	4,085,000	6,033,000
Net Tangible Assets	26,683,000	24,672,000	28,113,000	27,177,000
Capital Lease Obligations					290,000
Common Stock Equity	29,093,000	27,408,000	30,583,000	29,494,000
Total Capitalization	47,771,000	45,639,000	48,460,000	46,155,000
Total Equity Gross Minority Interest	30,241,000	28,463,000	31,650,000	34,106,000
Minority Interest	1,148,000	1,055,000	1,067,000	4,612,000
Stockholders Equity	29,093,000	27,408,000	30,583,000	29,494,000
Gains Losses Not Affecting Retained Earnings	-167,000	-407,000	-282,000	-460,000
Other Equity Adjustments	-167,000	-407,000	-282,000	-460,000
Treasury Stock	23,934,000	22,751,000	19,342,000	15,276,000
Retained Earnings	33,239,000	30,771,000	30,550,000	25,432,000
Additional Paid In Capital	19,948,000	19,788,000	19,650,000	19,791,000
Capital Stock	7,000	7,000	7,000	7,000
Common Stock	7,000	7,000	7,000	7,000
Total Liabilities Net Minority Interest	43,439,000	44,119,000	43,851,000	42,336,000
Total Non Current Liabilities Net Minority Interest	30,113,000	29,032,000	27,995,000	26,447,000
Other Non Current Liabilities	2,532,000	1,868,000	1,200,000	1,299,000
Employee Benefits	573,000	703,000	630,000	937,000
Non Current Deferred Liabilities	7,308,000	7,101,000	7,424,000	6,671,000
Non Current Deferred Taxes Liabilities	7,308,000	7,101,000	7,424,000	6,671,000
Long Term Debt And Capital Lease Obligation	18,678,000	18,231,000	17,877,000	16,661,000
Long Term Capital Lease Obligation					257,000
Long Term Debt	18,678,000	18,231,000	17,877,000	16,661,000
Long Term Provisions	1,022,000	1,129,000	864,000	879,000
Current Liabilities	13,326,000	15,087,000	15,856,000	15,889,000
Current Deferred Liabilities			1,200,000	1,397,000	1,254,000
Current Deferred Revenue			1,200,000	1,397,000	1,254,000
Current Debt And Capital Lease Obligation	1,038,000	1,831,000	1,482,000	529,000
Current Capital Lease Obligation					33,000
Current Debt	1,038,000	1,831,000	1,482,000	529,000
Other Current Borrowings					1,456,000
Pensionand Other Post Retirement Benefit Plans Current	680,000	732,000	863,000	764,000
Payables And Accrued Expenses	11,608,000	12,524,000	13,511,000	14,596,000
Current Accrued Expenses	1,379,000	1,160,000	1,410,000	1,876,000
Payables	10,229,000	11,364,000	12,101,000	12,720,000
Total Tax Payable	1,362,000	1,060,000	1,200,000	1,397,000
Accounts Payable	8,867,000	10,304,000	10,901,000	11,323,000
Total Assets	73,680,000	72,582,000	75,501,000	76,442,000
Total Non Current Assets	56,408,000	54,672,000	55,560,000	54,520,000
Other Non Current Assets	2,996,000	2,294,000	2,076,000	2,090,000
Non Current Note Receivables	303,000	174,000	379,000	329,000
Investments And Advances	11,602,000	14,204,000	14,923,000	14,621,000
Other Investments	177,000	191,000	195,000	207,000
Long Term Equity Investment	11,425,000	14,013,000	14,728,000	14,414,000
Goodwill And Other Intangible Assets	2,410,000	2,736,000	2,470,000	2,317,000
Other Intangible Assets	977,000	1,161,000	920,000	831,000
Goodwill	1,433,000	1,575,000	1,550,000	1,486,000
Net PPE	39,097,000	35,264,000	35,712,000	35,163,000
Accumulated Depreciation	-22,694,000	-20,692,000	-19,480,000	-17,827,000
Gross PPE	61,791,000	55,956,000	55,192,000	52,990,000
Other Properties	61,791,000	55,956,000	55,192,000	52,990,000
Current Assets	17,271,000	17,910,000	19,941,000	21,922,000
Other Current Assets	1,287,000	1,144,000	1,138,000	1,528,000
Prepaid Assets				1,528,000	686,000
Inventory	5,097,000	3,995,000	3,750,000	3,276,000
Finished Goods	4,529,000	3,547,000	3,330,000	2,914,000
Raw Materials	568,000	448,000	420,000	362,000
Receivables	9,771,000	11,033,000	11,730,000	10,985,000
Accounts Receivable	9,771,000	11,033,000	11,730,000	10,985,000
Allowance For Doubtful Accounts Receivable	-68,000	-70,000	-71,000	-67,000
Gross Accounts Receivable	9,839,000	11,103,000	11,801,000	11,052,000
Cash Cash Equivalents And Short Term Investments	1,116,000	1,738,000	3,323,000	6,133,000
Cash And Cash Equivalents	1,116,000	1,738,000	3,323,000	6,133,000

Cash Flow

	2025	2024	2023	2022
Free Cash Flow	2,729,000	2,332,000	4,874,000	8,925,000
Repurchase Of Capital Stock	-1,207,000	-3,451,000	-4,014,000	-1,513,000
Repayment Of Debt	-8,774,000	-4,140,000	-4,252,000	-2,883,000
Issuance Of Debt	8,395,000	6,272,000	6,260,000	453,000
Issuance Of Capital Stock	107,000	86,000	123,000	103,000
Capital Expenditure	-2,233,000	-1,859,000	-2,155,000	-1,888,000
Interest Paid Supplemental Data	972,000	901,000	816,000	572,000
Income Tax Paid Supplemental Data	200,000	1,186,000	1,397,000	2,071,000
End Cash Position	1,116,000	1,738,000	3,323,000	6,133,000
Beginning Cash Position	1,738,000	3,323,000	6,133,000	3,147,000
Effect Of Exchange Rate Changes	50,000	-8,000	43,000	49,000
Changes In Cash	-672,000	-1,577,000	-2,853,000	2,937,000
Financing Cash Flow	-3,537,000	-3,305,000	-8,092,000	-6,388,000
Cash Flow From Continuing Financing Activities	-3,537,000	-3,305,000	-8,092,000	-6,388,000
Net Other Financing Charges	-136,000	-190,000	-4,327,000	-755,000
Cash Dividends Paid	-1,922,000	-1,882,000	-1,882,000	-1,793,000
Common Stock Dividend Paid	-1,922,000	-1,882,000	-1,882,000	-1,793,000
Net Common Stock Issuance	-1,100,000	-3,365,000	-3,891,000	-1,410,000
Common Stock Payments	-1,207,000	-3,451,000	-4,014,000	-1,513,000
Common Stock Issuance	107,000	86,000	123,000	103,000
Net Issuance Payments Of Debt	-379,000	2,132,000	2,008,000	-2,430,000
Net Long Term Debt Issuance	-379,000	2,132,000	2,008,000	-2,430,000
Long Term Debt Payments	-8,774,000	-4,140,000	-4,252,000	-2,883,000
Long Term Debt Issuance	8,395,000	6,272,000	6,260,000	453,000
Investing Cash Flow	-2,097,000	-2,463,000	-1,790,000	-1,488,000
Cash Flow From Continuing Investing Activities	-2,097,000	-2,463,000	-1,790,000	-1,488,000
Net Other Investing Changes	3,544,000	-120,000	427,000	581,000
Net Business Purchase And Sale	-3,408,000	-484,000	-62,000	-181,000
Sale Of Business	90,000	141,000	201,000	125,000
Purchase Of Business	-3,498,000	-625,000	-263,000	-306,000
Capital Expenditure Reported	-2,233,000	-1,859,000	-2,155,000	-1,888,000
Operating Cash Flow	4,962,000	4,191,000	7,029,000	10,813,000
Cash Flow From Continuing Operating Activities	4,962,000	4,191,000	7,029,000	10,813,000
Change In Working Capital	-1,181,000	-615,000	-1,815,000	68,000
Change In Payables And Accrued Expense	-574,000	-955,000	-1,143,000	2,316,000
Change In Payable	-574,000	-955,000	-1,143,000	2,316,000
Change In Account Payable	-804,000	-491,000	-480,000	1,736,000
Change In Tax Payable	230,000	-464,000	-663,000	580,000
Change In Income Tax Payable	230,000	-464,000	-663,000	580,000
Change In Prepaid Assets	-259,000	44,000	269,000	-249,000
Change In Inventory	160,000	-278,000	-245,000	74,000
Change In Receivables	-508,000	574,000	-696,000	-2,073,000
Other Non Cash Items	-22,000	798,000	-390,000	-2,773,000
Unrealized Gain Loss On Investment Securities	12,000	0	38,000	433,000
Asset Impairment Charge	1,060,000	456,000	24,000	60,000
Deferred Tax	178,000	-251,000	840,000	1,320,000
Deferred Income Tax	178,000	-251,000	840,000	1,320,000
Depreciation Amortization Depletion	3,251,000	2,363,000	1,977,000	1,629,000
Depreciation And Amortization	3,251,000	2,363,000	1,977,000	1,629,000
Operating Gains Losses	-2,864,000	-735,000	-884,000	-1,315,000
Earnings Losses From Equity Investments	120,000	-411,000	-822,000	-1,308,000
Net Income From Continuing Operations	4,528,000	2,175,000	7,239,000	11,391,000

These metrics estimate what Phillips 66 is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$132.73

Margin of Safety

Market Cap ÷ Company Value

1.58

P/B Ratio

2.45

Warren's Owner Earnings

$9.9B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

3/7 — Speculative Investor

✅ Adequate Size

$132.4B

vs > $1.5B revenue

❌ Strong Financial Condition

1.30x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

2.76%

vs Uninterrupted dividends

❌ Earnings Growth

-53.6% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

17.6x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

2.45x P/B (P/E×P/B: 43.0)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-65.27

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$93.70

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022
Capital Expenditure % of Net Income	50.7%	87.8%	30.7%	17.1%
Repurchase of Capital Stock	-$1.2B	-$3.5B	-$4.0B	-$1.5B
Free Cash Flow	$2.7B ▲	$2.3B ▼	$4.9B ▼	$8.9B •
Warren's Owner Earnings	$9.9B	$6.3B	$11.1B	$14.5B

Peers & Industry

No auto-detected peers for Oil & Gas Refining & Marketing. You can manually compare PSX against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.23%

Low — management has little skin in the game

Return on Equity (ROE)

15.1%

Excellent — management generates strong returns on equity

Return on Assets (ROA)

6.0%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$1.2B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

-1.7% YoY

Debt is declining — management is deleveraging

Leadership Team

Mark Lashier

CEO & Chairman

Age 63

Pay: $6,369,641

0.145% of net income

Kevin Mitchell

Executive VP & CFO

Age 59

Pay: $2,690,238

0.061% of net income

Brian Mandell

Executive Vice President of Marketing & Commercial

Age 61

Pay: $2,175,348

0.049% of net income

Richard Harbison

Executive Vice President of Refining

Age 59

Pay: $2,258,781

0.051% of net income

Todd Denton

Senior Vice President of Health, Safety, Environment (HSE) & Field Operations Support

Age 60

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	12.95%	51,930,038
Blackrock Inc.	7.71%	30,919,347
State Street Corporation	5.88%	23,589,550
Elliott Investment Management L.P.	4.80%	19,251,000
Wells Fargo & Company	3.53%	14,152,872
Harris Associates L.P.	3.49%	13,978,492
Geode Capital Management, LLC	2.60%	10,413,824
Bank Of New York Mellon Corporation	1.77%	7,103,557

Risk Analysis

Beta (Market Risk)

0.69

Low volatility — more stable than the market

Short Interest

1.8% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.91x

Conservative balance sheet — low financial risk

Current Ratio

1.13x

Adequate liquidity

52-Week Price Range

Low: $104.83 Current: $177.64 High: $190.61

Currently at 85% of 52-week range

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