PHINIA, Inc. (PHIN)
NYSEConsumer DiscretionaryAuto - PartsSnapshot 2026-09-04
$69.04+0.91%
Close 2026-09-04 · 1-day change
NYSEConsumer DiscretionaryAuto - PartsSnapshot 2026-09-04
Broken: Primary pillar broken — Operating margin near 13.8%: TTM operating margin 7.0% vs 13.8% target.
PHINIA grows revenue about 4% yearly, reaching $3.62B in 2026. Profit margins stay near 14%. Cash from operations improves, supporting dividends. The company beats earnings and manages costs well.
Revenue growth slows below 3.5%. Profit margins shrink under 13%. Cash flow weakens, pressuring dividends and investments.
The price is about 3% below our fair value near $81. Analysts expect 3.6% revenue growth, which aligns with our view. We see moderate risk from margin pressure and soft guidance.
Breaks if: Free cash flow falls below $200M in FY26
Breaks if: Management instability or execution failures reported
Breaks if: Operating margin falls below 13% in FY25
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment is positioned as a durable compounder with a focus on profitable growth. The current thesis state is stable, but recent earnings performance has led to a mixed outlook.
Valuation is currently seen as cheap compared to peers, with a slight expectations gap. The market appears to have priced in a stable performance, but there is room for improvement in earnings quality.
Management is on track with priorities like driving profitable growth and increasing cash flow. However, operating income has shown mixed results, which could impact future performance.
Key factors include management's ability to maintain guidance, sector performance from bellwethers, and inflation trends that could affect consumer discretionary spending. Any cuts in guidance or reacceleration of inflation could pose risks.
The most important moves since the prior daily snapshot.
Yes, our read has weakened. This change is driven by the latest earnings miss. The company's operating margin is significantly below its target, which raises concerns about its performance.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: YoY revenue growth falls below ~3.6% in FY26
Overall, PHIN's fundamentals suggest a cautious but stable outlook for the next 1-3 years. Not investment advice.