How to buy Phillips 66 shares | $52.85
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Phillips 66 is an oil & gas refining & marketing business with stocks listed in the US. Phillips 66 shares (PSX) are listed on the NYSE and all prices are listed in US Dollars. Its last market close was US$52.85 – a decrease of 11.65% over the previous week.
How to buy shares in Phillips 66
- Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
- Search for Phillips 66. Find the share by name or ticker symbol: PSX. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Phillips 66 reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. At last close price of US$52.85, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Phillips 66, depending on your broker.
- Check in on your investment. Congratulations, you own a part of Phillips 66. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
What's in this guide?
- Phillips 66 key stats
- Compare share trading platforms
- Is Phillips 66 stock a buy or sell?
- Phillips 66 performance over time
- Can I short Phillips 66 shares?
- Is Phillips 66 suitable for ethical investing?
- Are Phillips 66 shares over-valued?
- Phillips 66's financials
- How volatile are Phillips 66 shares?
- Does Phillips 66 pay a dividend?
- Other common questions
How has coronavirus impacted Phillips 66's share price?
Since the stock market crash in March caused by coronavirus, Phillips 66's share price has had significant negative movement.
Its last market close was US$52.85, which is 40.78% down on its pre-crash value of US$89.25 and 31.99% up on the lowest point reached during the March crash when the shares fell as low as US$40.04.
If you had bought US$1,000 worth of Phillips 66 shares at the start of February 2020, those shares would have been worth US$473.09 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth US$594.03.
Phillips 66 share priceUse our graph to track the performance of PSX stocks over time.
Phillips 66 shares at a glance
|Latest market close||USD$52.85|
|52-week range||USD$40.04 - USD$119.92|
|50-day moving average||USD$60.7112|
|200-day moving average||USD$64.8932|
|Dividend yield||USD$3.6 (5.95%)|
|Earnings per share (TTM)||USD$0.827|
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Is it a good time to buy Phillips 66 stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Phillips 66 price performance over time
|1 week (2020-09-14)||-9.46%|
|1 month (2020-08-25)||-14.25%|
|3 months (2020-06-25)||-24.58%|
|6 months (2020-03-25)||4.65%|
|1 year (2019-09-21)||N/A|
|2 years (2018-09-21)||-52.67%|
|3 years (2017-09-21)||-40.71%|
|5 years (2015-09-21)||-33.32%|
Is Phillips 66 under- or over-valued?
Valuing Phillips 66 stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Phillips 66's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Phillips 66's P/E ratio
Phillips 66's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 92x. In other words, Phillips 66 shares trade at around 92x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
Phillips 66's PEG ratio
Phillips 66's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.8754. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Phillips 66's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Phillips 66's EBITDA
Phillips 66's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$3.1 billion (£2.4 billion).
The EBITDA is a measure of a Phillips 66's overall financial performance and is widely used to measure a its profitability.
Phillips 66 financials
|Revenue TTM||US$88.1 billion|
|Operating margin TTM||1.99%|
|Gross profit TTM||US$11.8 billion|
|Return on assets TTM||1.95%|
|Return on equity TTM||-3.52%|
|Market capitalisation||US$26.1 billion|
TTM: trailing 12 months
Shorting Phillips 66 shares
There are currently 6.0 million Phillips 66 shares held short by investors – that's known as Phillips 66's "short interest". This figure is 2.3% up from 5.9 million last month.
There are a few different ways that this level of interest in shorting Phillips 66 shares can be evaluated.
Phillips 66's "short interest ratio" (SIR)
Phillips 66's "short interest ratio" (SIR) is the quantity of Phillips 66 shares currently shorted divided by the average quantity of Phillips 66 shares traded daily (recently around 3.3 million). Phillips 66's SIR currently stands at 1.85. In other words for every 100,000 Phillips 66 shares traded daily on the market, roughly 1850 shares are currently held short.
However Phillips 66's short interest can also be evaluated against the total number of Phillips 66 shares, or, against the total number of tradable Phillips 66 shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Phillips 66's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 Phillips 66 shares in existence, roughly 10 shares are currently held short) or 0.0139% of the tradable shares (for every 100,000 tradable Phillips 66 shares, roughly 14 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Phillips 66.
Find out more about how you can short Phillips 66 stock.
Phillips 66's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Phillips 66.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Phillips 66's total ESG risk score
Total ESG risk: 28.27
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Phillips 66's overall score of 28.27 (as at 07/31/2020) is nothing to write home about – landing it in it in the 57th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Phillips 66 is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Phillips 66's environmental score
Environmental score: 18.43/100
Phillips 66's environmental score of 18.43 puts it squarely in the 2nd percentile of companies rated in the same sector. This could suggest that Phillips 66 is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Phillips 66's social score
Social score: 5.57/100
Phillips 66's social score of 5.57 puts it squarely in the 2nd percentile of companies rated in the same sector. This could suggest that Phillips 66 is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Phillips 66's governance score
Governance score: 3.27/100
Phillips 66's governance score puts it squarely in the 2nd percentile of companies rated in the same sector. That could suggest that Phillips 66 is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Phillips 66's controversy score
Controversy score: 3/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Phillips 66 scored a 3 out of 5 for controversy – a middle-of-the-table result reflecting that Phillips 66 hasn't always managed to keep its nose clean.
Environmental, social, and governance (ESG) summary
|Total ESG score||28.27|
|Total ESG percentile||56.5|
|Environmental score percentile||2|
|Social score percentile||2|
|Governance score percentile||2|
|Level of controversy||3|
Phillips 66 share dividends
Dividend payout ratio: 537.31% of net profits
Recently Phillips 66 has paid out, on average, around 537.31% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 5.95% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Phillips 66 shareholders could enjoy a 5.95% return on their shares, in the form of dividend payments. In Phillips 66's case, that would currently equate to about $3.6 per share.
Phillips 66's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.
Phillips 66's most recent dividend payout was on 31 August 2020. The latest dividend was paid out to all shareholders who bought their shares by 16 August 2020 (the "ex-dividend date").
Phillips 66 share price volatility
Over the last 12 months, Phillips 66's shares have ranged in value from as little as US$40.04 up to US$119.92. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Phillips 66's is 1.5089. This would suggest that Phillips 66's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).
Phillips 66 overview
Phillips 66 operates as an energy manufacturing and logistics company. It operates through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties (M&S). The Midstream segment transports crude oil and other feedstocks; delivers refined products to market; provides terminaling and storage services for crude oil and petroleum products; transports, stores, fractionates, exports, and markets natural gas liquids; provides other fee-based processing services; and gathers, processes, transports, and markets natural gas. The Chemicals segment manufactures and markets ethylene and other olefin products; aromatics and styrenics products, such as benzene, cyclohexane, styrene, and polystyrene; and various specialty chemical products, including organosulfur chemicals, solvents, catalysts, and chemicals used in drilling and mining. The Refining segment refines crude oil and other feedstocks into petroleum products comprising gasolines, distillates, and aviation fuels at 13 refineries in the United States and Europe. The M&S segment purchases for resale and markets refined petroleum products consisting of gasolines, distillates, and aviation fuels primarily in the United States and Europe. It also manufactures and markets specialty products, such as petroleum coke products, waxes, solvents, and polypropylene. Phillips 66 was founded in 1875 and is headquartered in Houston, Texas.
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