Is Phillips 66 (PSX) Halal?

NYSE Energy United States $75.5B
✓ HALAL
Confidence: 95/100
Phillips 66 (PSX) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 29.6% against the AAOIFI threshold of 30%, Phillips 66 comfortably passes the key financial ratio tests. The company operates in the Energy sector (Oil & Gas Refining & Marketing), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 29.6%
/ 30%
1.7%
/ 30%
14.7%
/ 30%
0.11%
/ 5%
✓ HALAL
DJIM 29.6%
/ 33%
1.7%
/ 33%
14.7%
/ 33%
0.11%
/ 5%
✓ HALAL
MSCI 26.8%
/ 33%
1.5%
/ 33%
13.3%
/ 33%
0.11%
/ 5%
✓ HALAL
S&P 29.6%
/ 33%
1.7%
/ 33%
14.7%
/ 33%
0.11%
/ 5%
✓ HALAL
FTSE 26.8%
/ 33%
1.5%
/ 33%
13.3%
/ 50%
0.11%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
17.4
Forward: 13.4
EPS
$10.79
Dividend Yield
270.0%
Payout: 44.0%
P/B Ratio
2.6
EV/EBITDA
14.5
EV: $97.1B
Revenue
$132.4B
Growth: 1.3%
Beta
0.9
Average volatility
Current Ratio
1.3

Profitability

Gross Margin 12.3%
Operating Margin 2.7%
Net Margin 3.3%
Return on Equity (ROE) 15.4%
Return on Assets (ROA) 3.7%

Cash Flow & Balance Sheet

Operating Cash Flow$5.0B
Free Cash Flow$2.7B
Total Debt$19.7B
Debt-to-Equity71.4
Current Ratio1.3
Total Assets$73.7B

Price & Trading

Last Close$184.01
50-Day MA$158.85
200-Day MA$137.93
Avg Volume2.9M
Beta0.9
52-Week Range
$91.01
$188.53

About Phillips 66 (PSX)

CEO
Dr. Mark E. Lashier
Employees
12,600
Sector
Energy
Industry
Oil & Gas Refining & Marketing
Country
United States
Exchange
NYSE
Market Cap
$75.5B
Currency
USD

Phillips 66 operates as an integrated downstream energy provider in the United States, the United Kingdom, Germany, and internationally. It operates through five segments: Midstream, Chemicals, Refining, Marketing and Specialties (M&S), and Renewable Fuels. The Midstream segment provides crude oil and refined petroleum product transportation, terminaling, and storage services, as well as natural gas and natural gas liquids (NGL) gathering, processing, transportation, fractionation, storage and marketing services. It also exports liquefied petroleum gas. The Chemicals segment produces and markets ethylene and other olefin products; aromatics and styrenics products, such as benzene, cyclohexane, styrene, and polystyrene; various specialty chemical products, including organosulfur chemicals, solvents, catalysts, and chemicals used in drilling and mining; and petrochemicals and plastics. The Refining segment refines crude oil and other feedstocks into petroleum products, such as gasolines and distillates, including aviation fuels. The M&S segment purchases for resale and markets refined products, including gasolines, distillates, and aviation fuels. This segment also manufactures and markets specialty products, such as automotive, commercial, industrial, and specialty lubricants, as well as base oils. The Renewable Fuels segment processes renewable feedstocks into renewable products, as well as supplies sustainable aviation fuel. This segment also procures renewable feedstocks, manages certain regulatory credits, and markets renewable diesel, renewable jet fuel, and other renewable fuels. The company markets its products under the Phillips 66, Conoco and 76, JET, Kendall, Red Line, and other private label brands. Phillips 66 was founded in 1875 and is headquartered in Houston, Texas.

Purification Calculator

As a halal stock with 0.11% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Phillips 66 (PSX) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Phillips 66 is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Phillips 66's debt ratio?

Phillips 66's debt ratio is 29.6% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 26.8%.

Does Phillips 66 require dividend purification?

Yes, Phillips 66 has an impermissible income ratio of 0.11%, which means 0.11% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are Phillips 66's key financial metrics?

Phillips 66 has a market capitalization of $75.5B, trailing P/E ratio of 17.4, and revenue of $132.4B. The company maintains a gross margin of 12.3% and a net margin of 3.3%. Return on equity stands at 15.4%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.