Shares of Phillips 66 (NYSE:PSX) recorded 0.31% gain during trading session on October 18th, 2018. The script traded as low as $107.71 and last traded at $109.12. 1.84 million shares changed exchanged hands during trading, an increase of 30.58% from the 30-day average session volume of 2.65M shares. The firm had previously closed at $108.78. The company has $464.26M outstanding shares, a price-to-earnings ratio of 17.08, price-to-earnings-growth ratio of 0.47 and a beta of 0.90. The company has a RSI of 39.52, ATR of 2.49 and a volatility of 2.29% this week. PSX has a 52 week low price of $89.14 and a 52 week high price of $123.97.
Investors have identified the tech company Phillips 66 as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 50.66B, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Phillips 66 (PSX) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For PSX, the company has in raw cash 1.88 billion on their books with 341 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 54.83 billion total, with 29.87 billion as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
PSX were able to record 2.36 billion as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 1.04 billion. In cash movements, the company had a total of 2.36 billion as operating cash flow.
Potential earnings growth for Phillips 66 (PSX)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Phillips 66 recorded a total of 29.12 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.40 coming in sequential stages and their sales for the third quarter increasing by 0.23.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 27.09 billion trying to sell their products during the last quarter, with the result yielding a gross income of 2.03 billion. This allows shareholders to hold on to 471.64 million with the revenue now reading 2.84 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (1.72 cents a share).
Is the stock of PSX attractive?
Having a look at the company’s valuation, the company is expected to record 9.58 total earnings per share during the next fiscal year. Taking a look at the median price to earnings ratio, this means their stock price will be in the region of 10.90 per share. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on PSX sounds very interesting.
In related news, Vice President & Controller Oyolu Chukwuemeka A. sold 6,900 shares of the company’s stock in a transaction that recorded on May 17th, 2018. The sale was performed at an average price of 120.00, for a total value of 828,000. As the sale deal closes, the Vice President & Controller Oyolu Chukwuemeka A. now sold 2,700 shares of the company’s stock, valued at 270,675. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.10%.
3 out of 18 analysts covering the stock have rated it a Buy, while 10 have maintained a Hold recommendation on Phillips 66 stock. 0 analysts has assigned a Sell rating on the PSX stock. The 12-month mean consensus price target for the company’s shares has been set at $128.19.