Phinia Inc. (PHIN)

Price$69.04Cached quoteAs of 2026-09-05 14:35 UTC

AI: Undervalued

Price checkThe shares appear modestly undervalued because cash returns are strong despite manageable debt and uneven earnings.

At the observed market price, PHINIA’s equity value is about 19–20 times trailing earnings and about 0.7 times trailing sales. Using the supplied Q2 balance sheet, enterprise value—equity value plus debt minus cash—is roughly $3.1 billion, or about 6–7 times management’s 2026 midpoint for adjusted earnings before interest, taxes, depreciation, and amortization. The 2026 net-earnings midpoint implies roughly 15 times earnings, while planned adjusted free cash flow—cash left after running and investing in the business—implies about a 9% cash yield on the shares. Those signals favor Undervalued, subject to guidance holding.

Big pictureCash generation is improving, but five-year earnings show a cyclical business rather than steady growth.

Revenue rose from $3.23 billion in 2021 to $3.48 billion in 2025, a modest increase, while net income moved from $152 million to $130 million after peaking at $262 million in 2022. Operating cash flow reached $312 million in 2025, and simple cash left after capital spending was about $188 million; management reported adjusted free cash flow of $212 million. First-half 2026 operating cash flow improved to $144 million from $97 million. Second-quarter sales grew 5.6%, but net income fell to $40 million, showing both resilience and cyclicality.

Business strengthAftermarket demand and disciplined buybacks add value, but debt means the balance sheet is sound rather than fortress-like.

PHINIA’s aftermarket business added about 5,800 product listings in 2025, while Q2 2026 sales benefited from stronger Americas volumes and the Swedish Electromagnet Invest acquisition. Shares outstanding fell from 46.2 million in 2023 to 36.6 million by Q2 2026; 2025 buybacks totaled $202 million, and Q2 repurchases added $42 million. Against that, Q2 cash was $370 million versus $1.019 billion of debt, with $450 million of available revolving capacity. Stock compensation was $18 million in 2025, so buybacks have more than offset dilution.

What could change the storyThe case improves with successful stoba integration, but a downturn or weaker cash flow would erase the safety margin.

PHINIA expects the roughly $150 million stoba purchase to close in Q4 2026; management says it should add about $80 million of third-party sales and $25 million of adjusted earnings before interest, taxes, depreciation, and amortization, potentially lifting margins. The bear case is more immediate: Q2 adjusted operating-profit margin fell to 13.8% and net income declined despite higher sales, while net debt remains substantial. Current valuation assumes 2026 adjusted free cash flow near $210–250 million, no large operating slump, and a productive acquisition. Cash below $200 million or leverage above management’s 1.5-times target would weaken the thesis.

AI: News

Second-quarter resultsSecond-quarter sales grew, but lower profit and tighter guidance highlighted the cost of sustaining that growth.

On July 30, PHINIA reported second-quarter sales of $940 million, up 5.6% year over year, and adjusted operating profit before interest, taxes, depreciation, and amortization of $130 million, up $4 million. Yet net earnings fell $6 million to $40 million, and the margin slipped 40 basis points to 13.8% because employee costs and product mix offset tariff benefits. Management narrowed 2026 sales guidance to $3.57–3.67 billion while raising adjusted free-cash-flow guidance to $210–250 million. A contemporaneous report said shares fell about 1.5% premarket after adjusted earnings missed estimates; attribution remains uncertain.

Stoba acquisitionPHINIA agreed to buy a key supplier, adding industrial and aerospace exposure while committing cash before benefits are proven.

On June 30, PHINIA agreed to acquire 100% of stoba, with closing expected in Q4 2026 pending approvals. The company’s filing says the purchase price is about $150 million and will be funded from available liquidity. Management later described roughly $80 million of annual third-party sales and $25 million of adjusted operating profit before interest, taxes, depreciation, and amortization, implying a purchase near six times that profit measure. The deal could diversify PHINIA beyond vehicle demand, but it also uses cash while net debt is already about $649 million.

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Revenue

2021

2022

2023

2024

2025

Net income

2021

2022

2023

2024

2025

Free cash flow

2021

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021
Revenue	$3.48B	$3.40B	$3.50B	$3.35B	$3.23B
Gross profit	$762.0M	$756.0M	$724.0M	$721.0M	$676.0M
Gross margin	21.88%	22.22%	20.69%	21.54%	20.95%
Research & development	$105.0M	$112.0M	$108.0M	$104.0M	$132.0M
Operating expenses	$508.0M	$497.0M	$483.0M	$403.0M	$502.0M
Operating income	$254.0M	$259.0M	$241.0M	$318.0M	$174.0M
Operating margin	7.29%	7.61%	6.89%	9.50%	5.39%
EBITDA	$411.0M	$419.0M	$411.0M	$488.0M	$378.0M
EBITDA margin	11.80%	12.31%	11.74%	14.58%	11.71%
Net income	$130.0M	$79.0M	$102.0M	$262.0M	$152.0M
Net profit margin	3.73%	2.32%	2.91%	7.83%	4.71%
Basic EPSper basic share	$3.31	$1.80	$2.17	$5.57	$3.23
Diluted EPSper diluted share	$3.24	$1.76	$2.17	$5.57	$3.23

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of PHIN
Holder	Shares held
BlackRock, Inc.	5.79M
VANGUARD PORTFOLIO MANAGEMENT LLC	2.54M
DIMENSIONAL FUND ADVISORS LP	2.36M
FMR LLC	2.28M
AMERICAN CENTURY COMPANIES INC	1.82M
STATE STREET CORP	1.6M
VANGUARD CAPITAL MANAGEMENT LLC	1.6M
LSV ASSET MANAGEMENT	1.41M
GEODE CAPITAL MANAGEMENT, LLC	1.23M
Invesco Ltd.	1.06M
GOLDMAN SACHS GROUP INC	878.57K
VICTORY CAPITAL MANAGEMENT INC	772.67K
PRICE T ROWE ASSOCIATES INC /MD/	736.72K
MORGAN STANLEY	640.46K
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	617.11K
ION Fund Management Ltd	547.68K
T. Rowe Price Investment Management, Inc.	508.6K
NORTHERN TRUST CORP	470.41K
TEACHER RETIREMENT SYSTEM OF TEXAS	426.55K
UBS Group AG	394.13K

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys6$728.2K disclosed value

Sells (SEC code S)10$1.20M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 10, 2026Form 4	Pombier SamanthaVice President and Controller	SellCommon Stock	2.2K	$82.37	$183.4K	6.6K
Jun 10, 2026Form 4	Coetzee MichaelVP and GM Fuel Syst. Americas	SellCommon Stock	1.3K	$80.61	$100.8K	27.0K
Mar 4, 2026Form 4	Gustanski ChristopherVP, Operational Excellence	SellCommon Stock	3.8K	$72.73	$277.2K	14.9K
Mar 4, 2026Form 4	Fryer NeilVP and GM Global Aftermarket	SellCommon Stock	624	$72.75	$45.4K	18.2K
Nov 19, 2025Form 4	Yang HongyongVP and GM Fuel Syst. Asia Pac	SellCommon Stock · indirect	893	$52.43	$46.8K	0