SHELL PLC (R6C0.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:R6C0 - GB00BP6MXD84 - Common Stock
31 EUR
-0.18 (-0.59%)
We assign a fundamental rating of 5 out of 10 to R6C0. R6C0 was compared to 71 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of R6C0 get a neutral evaluation. Nothing too spectacular is happening here. R6C0 is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year R6C0 was profitable.
- R6C0 had a positive operating cash flow in the past year.
- R6C0 had positive earnings in 4 of the past 5 years.
- R6C0 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of R6C0 (3.87%) is comparable to the rest of the industry.
- R6C0's Return On Equity of 8.32% is in line compared to the rest of the industry. R6C0 outperforms 50.70% of its industry peers.
- R6C0's Return On Invested Capital of 6.04% is in line compared to the rest of the industry. R6C0 outperforms 54.93% of its industry peers.
- R6C0 had an Average Return On Invested Capital over the past 3 years of 8.04%. This is in line with the industry average of 8.91%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.87% | ||
| ROE | 8.32% | ||
| ROIC | 6.04% |
ROA(3y)6.16%
ROA(5y)3.54%
ROE(3y)13.87%
ROE(5y)7.87%
ROIC(3y)8.04%
ROIC(5y)5.84%
1.3 Margins
- R6C0 has a Profit Margin (5.44%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of R6C0 has grown nicely.
- R6C0's Operating Margin of 11.22% is on the low side compared to the rest of the industry. R6C0 is outperformed by 61.97% of its industry peers.
- In the last couple of years the Operating Margin of R6C0 has grown nicely.
- R6C0 has a Gross Margin of 25.44%. This is in the lower half of the industry: R6C0 underperforms 73.24% of its industry peers.
- R6C0's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.22% | ||
| PM (TTM) | 5.44% | ||
| GM | 25.44% |
OM growth 3Y5.7%
OM growth 5Y9.29%
PM growth 3Y-9.7%
PM growth 5Y4.27%
GM growth 3Y2.18%
GM growth 5Y6.18%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so R6C0 is still creating some value.
- The number of shares outstanding for R6C0 has been reduced compared to 1 year ago.
- The number of shares outstanding for R6C0 has been reduced compared to 5 years ago.
- Compared to 1 year ago, R6C0 has an improved debt to assets ratio.
2.2 Solvency
- R6C0 has an Altman-Z score of 2.10. This is not the best score and indicates that R6C0 is in the grey zone with still only limited risk for bankruptcy at the moment.
- With a Altman-Z score value of 2.10, R6C0 perfoms like the industry average, outperforming 56.34% of the companies in the same industry.
- R6C0 has a debt to FCF ratio of 2.80. This is a good value and a sign of high solvency as R6C0 would need 2.80 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 2.80, R6C0 is doing good in the industry, outperforming 77.46% of the companies in the same industry.
- R6C0 has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
- With a decent Debt to Equity ratio value of 0.36, R6C0 is doing good in the industry, outperforming 64.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.8 | ||
| Altman-Z | 2.1 |
ROIC/WACC0.88
WACC6.9%
2.3 Liquidity
- A Current Ratio of 1.35 indicates that R6C0 should not have too much problems paying its short term obligations.
- R6C0's Current ratio of 1.35 is in line compared to the rest of the industry. R6C0 outperforms 50.70% of its industry peers.
- A Quick Ratio of 1.10 indicates that R6C0 should not have too much problems paying its short term obligations.
- R6C0 has a Quick ratio (1.10) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
- The earnings per share for R6C0 have decreased strongly by -25.23% in the last year.
- The Earnings Per Share has been growing by 12.99% on average over the past years. This is quite good.
- The Revenue has decreased by -9.33% in the past year.
- Measured over the past years, R6C0 shows a decrease in Revenue. The Revenue has been decreasing by -3.79% on average per year.
EPS 1Y (TTM)-25.23%
EPS 3Y14.67%
EPS 5Y12.99%
EPS Q2Q%-3.12%
Revenue 1Y (TTM)-9.33%
Revenue growth 3Y2.83%
Revenue growth 5Y-3.79%
Sales Q2Q%-4.13%
3.2 Future
- R6C0 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.37% yearly.
- Based on estimates for the next years, R6C0 will show a decrease in Revenue. The Revenue will decrease by -4.04% on average per year.
EPS Next Y-13.4%
EPS Next 2Y-7.32%
EPS Next 3Y-0.5%
EPS Next 5Y6.37%
Revenue Next Year-8.31%
Revenue Next 2Y-5.3%
Revenue Next 3Y-1.14%
Revenue Next 5Y-4.04%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 11.61, the valuation of R6C0 can be described as very reasonable.
- R6C0's Price/Earnings ratio is a bit cheaper when compared to the industry. R6C0 is cheaper than 69.01% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. R6C0 is valued rather cheaply when compared to this.
- R6C0 is valuated reasonably with a Price/Forward Earnings ratio of 11.43.
- R6C0's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. R6C0 is cheaper than 64.79% of the companies in the same industry.
- R6C0 is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.61 | ||
| Fwd PE | 11.43 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, R6C0 is valued cheaper than 87.32% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of R6C0 indicates a rather cheap valuation: R6C0 is cheaper than 95.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.94 | ||
| EV/EBITDA | 2.57 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.89
EPS Next 2Y-7.32%
EPS Next 3Y-0.5%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.03%, R6C0 is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 5.24, R6C0 has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, R6C0 pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.03% |
5.2 History
- The dividend of R6C0 decreases each year by -17.98%.
Dividend Growth(5Y)-17.98%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
- R6C0 pays out 58.21% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP58.21%
EPS Next 2Y-7.32%
EPS Next 3Y-0.5%
SHELL PLC / R6C0.DE FAQ
What is the ChartMill fundamental rating of SHELL PLC (R6C0.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to R6C0.DE.
What is the valuation status of SHELL PLC (R6C0.DE) stock?
ChartMill assigns a valuation rating of 6 / 10 to SHELL PLC (R6C0.DE). This can be considered as Fairly Valued.
How profitable is SHELL PLC (R6C0.DE) stock?
SHELL PLC (R6C0.DE) has a profitability rating of 5 / 10.
What is the valuation of SHELL PLC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SHELL PLC (R6C0.DE) is 11.61 and the Price/Book (PB) ratio is 0.59.
How financially healthy is SHELL PLC?
The financial health rating of SHELL PLC (R6C0.DE) is 6 / 10.