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PHINIA Inc. (PHIN)
:PHIN
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PHINIA Inc.
(NYSE:PHIN)
64Neutral
PHINIA Inc. (PHIN) vs. S&P 500 (SPY)
Market Cap
$1.82B
Dividend Yield2.29%
Average Volume (3M)761.78K
Price to Earnings (P/E)25.2
Beta (1Y)1.24
Revenue Growth-2.77%
EPS Growth-26.95%
CountryUS
Employees12,700
SectorConsumer Cyclical
Sector Strength49
IndustryVehicles
Share Statistics
EPS (TTM)1.75
Shares Outstanding40,813,560
10 Day Avg. Volume1,058,218
30 Day Avg. Volume761,784
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.53
Price to Cash Flow (P/CF)6.20
P/FCF Ratio8.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$56.33Price Target Upside26.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
PHINIA Inc. Business Overview & Revenue Model
Company DescriptionPHINIA Inc. develops and manufactures gasoline and diesel fuel injection components and systems. The company also sells products and services to independent aftermarket customers and original equipment service customers with new and remanufactured products. Its product portfolio includes a range of solutions covering the fuel injection, electronics and engine management, starters and alternators, maintenance, test equipment, and vehicle diagnostics categories. The company was incorporated in 2023 and is based in Auburn Hills, Michigan.
How the Company Makes MoneyPHINIA Inc. generates revenue primarily through the sale of its propulsion systems and components to automotive manufacturers and industrial clients. The company leverages its expertise in engine technology and alternative fuel solutions to offer products that meet the diverse needs of its customers. Key revenue streams include the development and sale of internal combustion engine components, electrified powertrain systems, and solutions for alternative fuels. Strategic partnerships with leading automotive companies and investments in research and development play a significant role in driving PHINIA Inc.'s earnings and maintaining its competitive edge in the market.
PHINIA Inc. Financial Statement Overview
Summary
PHINIA Inc. demonstrates solid financial health with stable profitability and effective cash flow management. While revenue growth faces challenges, the company maintains efficient operational performance. The balance sheet reflects prudent financial leverage, and strong cash flows provide a buffer against potential market uncertainties.Income Statement
PHINIA Inc. shows a stable gross profit margin over the years with a slight improvement in gross profit margins from 20.3% in 2023 to 22.2% in 2024. The net profit margin shows volatility from 2.9% in 2023 to 2.3% in 2024. Revenue decreased slightly by 2.8% from 2023 to 2024, indicating a challenge in maintaining sales growth. EBIT and EBITDA margins are consistent, reflecting stable operational efficiency.68
Positive
Balance Sheet
The company maintains a healthy debt-to-equity ratio of 0.63 in 2024, reflecting a balanced approach to leveraging. Stockholders' equity decreased from 2023 to 2024, affecting the equity ratio which dropped slightly to 41.8%. Return on equity declined to 5.0% in 2024, signaling a decrease in profitability for shareholders.75
Positive
Cash Flow
PHINIA shows strong cash flow management with a significant increase in operating cash flow from 2023 to 2024. Free cash flow improved, showing robust cash generation, and the free cash flow to net income ratio increased to 3.9 in 2024. The operating cash flow to net income ratio of 3.9 indicates strong cash conversion capabilities.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.40B | 3.50B | 3.44B | 3.23B | 1.03B | Gross Profit |
| 756.00M | 724.00M | 726.00M | 676.00M | 175.00M | EBIT |
| 259.00M | 241.00M | 287.00M | 174.00M | -93.00M | EBITDA |
| 446.00M | 433.00M | 545.00M | 424.00M | -26.00M | Net Income Common Stockholders |
| 79.00M | 102.00M | 187.00M | 152.00M | -124.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 484.00M | 365.00M | 251.00M | 259.00M | 0.00 | Total Assets |
| 3.77B | 4.04B | 4.07B | 4.18B | 0.00 | Total Debt |
| 988.00M | 864.00M | 113.00M | 100.00M | 0.00 | Net Debt |
| 504.00M | 499.00M | -138.00M | -159.00M | 0.00 | Total Liabilities |
| 2.19B | 2.15B | 2.43B | 2.47B | 0.00 | Stockholders Equity |
| 1.57B | 1.89B | 1.64B | 1.71B | 0.00 |
| Cash Flow | Free Cash Flow | |||
| 308.00M | 100.00M | 196.00M | 1.00M | -151.00M | Operating Cash Flow |
| 308.00M | 250.00M | 303.00M | 147.00M | -97.00M | Investing Cash Flow |
| -101.00M | -150.00M | -105.00M | -140.00M | 369.00M | Financing Cash Flow |
| -96.00M | 20.00M | -185.00M | -44.00M | 2.00M |
PHINIA Inc. Technical Analysis
Negative
44.51
Price Trends
48.14
Negative
49.25
Negative
46.53
Negative
Market Momentum
-1.57
Negative
45.19
Neutral
84.24
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PHIN, the sentiment is Negative. The current price of 44.51 is below the 20-day moving average (MA) of 45.10, below the 50-day MA of 48.14, and below the 200-day MA of 46.53, indicating a bearish trend. The MACD of -1.57 indicates Negative momentum. The RSI at 45.19 is Neutral, neither overbought nor oversold. The STOCH value of 84.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PHIN.
PHINIA Inc. Risk Analysis
PHINIA Inc. disclosed 31 risk factors in its most recent earnings report. PHINIA Inc. reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
PHINIA Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $493.33M | 3.05 | 11.18% | 8.97% | -11.02% | -51.66% | |
70 Outperform | $5.06B | 10.51 | 10.81% | 3.27% | -0.70% | -7.27% | |
66 Neutral | $6.93B | 11.10 | 26.69% | 3.07% | -0.80% | 39.95% | |
64 Neutral | $1.82B | 25.24 | 4.57% | 2.29% | -2.77% | -26.95% | |
64 Neutral | $2.06B | ― | -3.92% | 2.83% | -2.57% | -248.28% | |
62 Neutral | $6.30B | 19.09 | 6.46% | 1.53% | -11.10% | -46.32% | |
59 Neutral | $12.37B | 11.05 | 1.62% | 3.72% | 1.33% | -19.81% |
* Consumer Cyclical Sector Average
Performance Comparison
PHIN
PHINIA Inc.
44.51
7.69
20.89%
ALV
Autoliv
89.22
-30.02
-25.18%
BWA
BorgWarner
28.70
-4.03
-12.31%
DAN
Dana Holding
14.14
2.18
18.23%
LEA
Lear
94.30
-45.99
-32.78%
TEN
Tsakos Energy Navigation
16.72
-7.47
-30.88%
PHINIA Inc. Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: -8.70% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong aftermarket segment performance and significant new business wins offset by a decline in net sales and challenges in the Fuel Systems segment. The company maintained a strong balance sheet and increased shareholder returns, but faced headwinds from a high effective tax rate and decreased EBITDA margins.Highlights
Strong Aftermarket Segment Performance
Aftermarket segment sales increased by 4.9% year-over-year due to higher volume and pricing, with volumes expanding across all regions.
Significant New Business Wins
Phinia achieved new business wins across various product lines, including a second product win in aerospace and defense, a key contract extension with a medium-duty engine manufacturer, and a Light Vehicle GDi program extension.
Healthy Adjusted Free Cash Flow
The company reported an adjusted free cash flow of $72 million for the quarter and $253 million for the full year 2024.
Increased Shareholder Returns
Phinia returned $35 million to shareholders via share buybacks and dividends in the fourth quarter, and increased its share repurchase program by $200 million, with a quarterly dividend increase of 8%.
Strong Balance Sheet and Liquidity
The company ended 2024 with cash and cash equivalents of $484 million, up from $365 million in 2023, and total liquidity of approximately $1 billion.
Lowlights
Decline in Net Sales
Net sales for the fourth quarter were $833 million, down 5.6% from the same period of the prior year. Excluding contract manufacturing sales, the reduction was 2.9% year-over-year.
Decreased Adjusted EBITDA Margin
Adjusted EBITDA margin was 13.2%, a decrease of 160 basis points year-over-year, due to sales decreases and higher corporate costs.
High Effective Tax Rate
The adjusted effective tax rate ended the year at 41.5%, above the expected range of 33% to 37%, impacting net earnings.
Challenges in Fuel Systems Segment
Fuel Systems segment sales were down 11.7%, including prior year contract manufacturing sales, or 7.7% excluding them, due to lower commercial vehicle revenue in Europe and China.
Company Guidance
During the Phinia Fourth Quarter 2024 earnings call, several key metrics and guidance for 2025 were discussed. The company reported net sales of $833 million for Q4, a 5.6% decrease from the same period in the previous year, while adjusted EBITDA was $110 million with a margin of 13.2%, down 160 basis points year-over-year. Adjusted free cash flow for the quarter was $72 million, contributing to a full-year adjusted free cash flow of $253 million. The balance sheet remained strong with $484 million in cash and cash equivalents, up from $365 million at the end of 2023, and total liquidity of approximately $1 billion. For 2025, Phinia expects net sales between $3.23 billion and $3.43 billion, with adjusted EBITDA projected to range from $450 million to $490 million. The company plans to continue its share repurchase program with an additional $200 million increase and has declared a quarterly dividend of $0.27 per share, reflecting an 8% increase from the previous year.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.