PHINIA Inc. (PHIN) stock analysis

P/E below its 5-year median

Phinia's P/E of 14.5 is below its own 5-year median of 21.4.

P/E below the industry

Phinia's P/E of 14.5 is below the Motor Vehicles and Motor Vehicle Equipment median of 18.7.

EV/EBITDA below its 5-year median

Phinia's EV/EBITDA of 7.0 is below its 5-year median of 7.0.

P/B above the industry

Phinia's price-to-book of 1.70 is above the Motor Vehicles and Motor Vehicle Equipment median of 1.56.

Trading below fair value

The share price of $72.08 is below our fair value estimate of $82.32.

Margin of safety under 20%

The price is 12.4% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 1.3% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -16.5% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing faster than the industry

Revenue grew 5.6% over the last twelve months; the Motor Vehicles and Motor Vehicle Equipment median is 5.5%.

Guidance raised

Phinia raised its Full-Year 2026 Adjusted tax rate outlook on Oct 29, 2026.

Gross margin improving

Gross margin was 22.1% over the last twelve months, against 22.1% a year earlier.

Return on equity under 15%

Return on equity was 12.2% over the last twelve months and averaged 8.6% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 10.4%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Phinia's return on equity of 12.2% is above the Motor Vehicles and Motor Vehicle Equipment median of 3.5%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 5.2% over the last twelve months, against a 5-year average of 4.3%.

Net margin above the industry

Phinia's net margin of 5.2% is above the Motor Vehicles and Motor Vehicle Equipment median of 1.9%.

High debt

Debt is 71.7% of shareholders' equity, above the 40% we consider low.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 29.9% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.70 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.14; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Phinia paid dividends worth 1.6% of the share price over the last twelve months.

Yield below Treasuries

The 1.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Phinia yields 1.6%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 22.8% of net income.

Covered by free cash flow

Dividends take 18.9% of free cash flow.