Phillips 66 (PSX) is back in focus after reporting its highest quarterly profit on record, supported by 98% refinery utilization, a record 41% distillate yield, and wider refining margins linked to supply disruptions.
Recent trading has been choppy. The share price has climbed 7.97% over the past 30 days and 29.99% over 90 days, yet it slipped 5.62% across the last week as refining sentiment cooled after a sharp pullback in crude. Even with that pause, Phillips 66 has a 109.67% year to date share price return and a 104.25% total shareholder return over 1 year, reflecting momentum that has accompanied a series of record earnings, a dividend increase and new capital returns announcements.
Scan how Phillips 66 compares to other refiners benefiting from strong utilization and cash returns by reviewing the hand picked 26 high quality undervalued stocks that may merit a closer look.
After a run that has already delivered triple digit returns over the past year, set against record earnings and hefty cash payouts, the question now is whether Phillips 66 still offers meaningful upside or if most of the rerating is already in the rearview mirror.
Most Popular Narrative: 21% Undervalued
On the most followed narrative, Phillips 66 screens as undervalued, with a fair value of $345 against the last close at $273.76, which puts a lot of weight on long term project execution and cash generation.
Expansion of the Midstream platform, including gas plants like Dos Picos II and Iron Mesa plus the Coastal Bend pipeline build out, is expected to support higher NGL transportation and fractionation volumes over time. This directly supports adjusted EBITDA and cash flow available for dividends and buybacks.
See why 0 investors see Phillips 66 as 21% undervalued.
Result: Fair Value of $345 (UNDERVALUED)
Still, the bullish Phillips 66 narrative can crack if heavy crude differentials stay tight or if the multi year refining cost cuts prove harder to deliver.
Find out about the key risks to this Phillips 66 narrative.
Next Steps
Mixed sentiment like this rarely lasts long. If you want to cut through the noise and judge Phillips 66 on your own terms, start with the 4 key rewards and 2 important warning signs
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include PSX.
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Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
