(PSX) Phillips 66 - Ratings and Ratios

Phillips 66 (NYSE:PSX) is a diversified energy manufacturing and logistics company with global operations across the United States, the United Kingdom, Germany, and other international markets. The company is organized into five core business segments: Midstream, Chemicals, Refining, Marketing and Specialties (M&S), and Renewable Fuels. The Midstream segment focuses on the transportation of crude oil and feedstocks, delivery of refined products, terminaling and storage services, natural gas processing, and natural gas liquids (NGLs) operations. The Chemicals segment produces ethylene, olefins, aromatics, styrenics, and specialty chemicals, including organosulfur compounds and drilling chemicals. The Refining segment processes crude oil into petroleum products such as gasoline, diesel, and jet fuel. The M&S segment markets these refined products, along with lubricants, base oils, and specialty products, under brands like Phillips 66, Conoco, 76, and Kendall. The Renewable Fuels segment converts renewable feedstocks into biofuels, including renewable diesel and sustainable aviation fuel (SAF), while managing regulatory credits and marketing these products. Phillips 66, founded in 1875 and headquartered in Houston, Texas, operates a vast network of pipelines, terminals, and retail outlets, supported by its portfolio of well-known brands.

From a technical perspective, PSX is currently trading at $99.10, below its short-term (SMA 20: $110.25) and medium-term (SMA 50: $119.53) moving averages, signaling potential short-term weakness. The stocks long-term trend (SMA 200: $125.16) also reflects downward momentum, though the Average True Range (ATR: 5.14) suggests moderate volatility. On the fundamental side, the company has a market capitalization of $40.4 billion, with a trailing P/E of 19.86 and a forward P/E of 15.82, indicating expectations of improving earnings. The price-to-book (P/B) ratio of 1.47 and price-to-sales (P/S) of 0.28 suggest the stock may be undervalued relative to its assets and revenue. The return on equity (RoE) of 7.72% reflects decent profitability, though it lags historical levels.

Over the next three months, PSX is likely to face headwinds from declining refining margins and potential volatility in energy demand. However, its diversified business model, including growing contributions from renewable fuels and chemicals, could provide stability. Technically, the stock may test support near $95, with resistance at $110. Fundamentally, improving refining margins and progress in its renewable energy initiatives could drive modest upside, though macroeconomic conditions and energy policy changes remain key risks.