Phinia Inc. (NYSE: PHIN)

Sector: Consumer Cyclical Industry: Auto Parts CIK: 0001968915
Market Cap 2.73 Bn
P/B 1.72
P/E 30.36
P/S 0.80
ROIC (Qtr) 6.22
Div Yield % 1.92
Rev 1y % (Qtr) 8.22
Total Debt (Qtr) 992.00 Mn
Debt/Equity (Qtr) 0.63

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 349M provide 13.42x coverage of short-term debt 26M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 3.07B provides 3.10x coverage of total debt 992M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 174M exceeds capital expenditure of 115M by 1.51x, indicating strong organic growth funding capability.
  • Robust tangible asset base of 3.07B provides 3.84x coverage of working capital 800M, indicating strong operational backing.
  • Tangible assets of 3.07B provide robust 6.61x coverage of other current liabilities 465M, indicating strong asset backing.

Bear case

  • Operating cash flow of 289M barely covers its investment activities of (120M), with a coverage ratio of -2.41, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 289M provides thin coverage of dividend payments of (43M) with a -6.72 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 349M provide limited coverage of acquisition spending of (8M), which is -43.62x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Free cash flow of 174M represents just -5.44x of debt issuance (32M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 289M is outpaced by equity issuance of (196M) (-1.47 ratio), indicating concerning reliance on equity markets for funding operations.

Segments Breakdown of Revenue (2024)

Subsegments Breakdown of Revenue (2024)

Peer comparison

Companies in the Auto Parts
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ORLY O Reilly Automotive Inc 80.07 Bn 32.23 4.59 8.40 Bn
2 AZO Autozone Inc 57.24 Bn 23.23 2.97 12.05 Bn
3 APTV Aptiv PLC 19.67 Bn 66.67 0.98 8.03 Bn
4 GPC Genuine Parts Co 17.83 Bn 22.05 0.74 6.40 Bn
5 MGA Magna International Inc 15.86 Bn 15.36 0.38 7.48 Bn
6 ALV Autoliv Inc 9.72 Bn 12.92 0.92 2.19 Bn
7 MBLY Mobileye Global Inc. 9.47 Bn -28.17 4.88 0.00 Bn
8 BWA Borgwarner Inc 8.87 Bn 66.21 0.63 3.90 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.85 1.16
EV to Cash from Ops. EV/CFO 11.68 9.30
EV to Debt EV to Debt 3.40 34.64
EV to EBIT EV/EBIT 12.83 4.45
EV to EBITDA EV/EBITDA 14.30 7.40
EV to Free Cash Flow [EV/FCF] EV/FCF 19.40 17.25
EV to Market Cap EV to Market Cap 1.24 1.58
EV to Revenue EV/Rev 0.98 3.42
Price to Book Value [P/B] P/B 1.72 -0.33
Price to Earnings [P/E] P/E 30.36 11.70
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.09 1.64
Dividend Payout Ratio % Div Payout % (Qtr) 46.50 12.18
Dividend per Basic Share Div per Share (Qtr) 1.06 0.41
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 23.58 13.70
Interest Coverage Int. cover (Qtr) 3.37 -110.44
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 2.54 -13.49
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -26.83 27.17
Dividend Growth (1y) % Div 1y % (Qtr) 6.00 1.96
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -20.03 5.41
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -18.34 -8.06
EBIT Growth (1y) % EBIT 1y % (Qtr) -15.43 -22.36
EBT Growth (1y) % EBT 1y % (Qtr) -11.06 -123.98
EPS Growth (1y) % EPS 1y % (Qtr) -3.80 -110.42
FCF Growth (1y) % FCF 1y % (Qtr) -2.79 24.26
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 0.66 16.01
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.86 0.92
Cash Payout Ratio Cash Payout (Qtr) 0.11 -0.25
Cash Ratio Cash Ratio (Qtr) 0.31 0.69
Current Ratio Curr Ratio (Qtr) 1.72 2.88
Debt to Equity Ratio Debt/Equity (Qtr) 0.63 0.22
Interest Cover Ratio Int Coverage (Qtr) 3.37 -110.44
Times Interest Earned Times Interest Earned (Qtr) 3.37 -110.44
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 7.70 -952.44
EBIT Margin % EBIT Margin % (Qtr) 7.67 -997.37
EBT Margin % EBT Margin % (Qtr) 5.40 -987.56
Gross Margin % Gross Margin % (Qtr) 22.10 -122.43
Net Profit Margin % Net Margin % (Qtr) 2.60 -979.78