Phillips 66 Earns High Score Amid Mixed Shareholder Yield

Phillips 66 (PSX) receives a strong rating of 65% from Validea's Shareholder Yield Investor model, indicating solid fundamentals. However, a failing score in shareholder yield may raise concerns among investors about cash returns.

Date: 18-01-2025

AI Rating: 6

Earnings Per Share (EPS): The report does not provide any specific information regarding the EPS of Phillips 66.

Revenue Growth: There is no mention of revenue growth in the analysis, which leaves uncertainty for investors in this area.

Net Income: The report does not specify net income details, which could affect investor perception on profitability.

Profit Margins: There is no information presented regarding profit margins (gross, operating, or net) for Phillips 66, limiting understanding of operational efficiency.

Free Cash Flow (FCF): The analysis lacks any data on free cash flow, a critical figure for assessing liquidity and financial health.

Return on Equity (ROE): The report does not include any return on equity metrics, which are vital for evaluating how effectively the company generates profit from shareholders' equity.

The rating of 65% indicates that while Phillips 66 has favorable fundamentals in several categories (universe, net payout yield, quality and debt, valuation, relative strength), it has failed to meet the criteria for shareholder yield. This may signal to investors that while the company shows promise, it is not currently returning sufficient cash to shareholders through dividends, buybacks, or debt reduction. This failure could hinder stock performance as investors generally favor companies that prioritize shareholder returns.

Stocks: PSX