SHELL PLC-ADR (SHEL) Stock Fundamental Analysis
NYSE:SHEL - New York Stock Exchange, Inc. - US7802593050 - ADR - Currency: USD
We assign a fundamental rating of 5 out of 10 to SHEL. SHEL was compared to 212 industry peers in the Oil, Gas & Consumable Fuels industry. While SHEL has a great health rating, its profitability is only average at the moment. SHEL is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year SHEL was profitable.
SHEL had a positive operating cash flow in the past year.
SHEL had positive earnings in 4 of the past 5 years.
Each year in the past 5 years SHEL had a positive operating cash flow.
1.2 Ratios
SHEL has a Return On Assets of 4.08%. This is comparable to the rest of the industry: SHEL outperforms 50.94% of its industry peers.
SHEL has a Return On Equity of 8.68%. This is comparable to the rest of the industry: SHEL outperforms 50.94% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.90%, SHEL is in the better half of the industry, outperforming 67.45% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SHEL is significantly below the industry average of 27.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.08% | ||
| ROE | 8.68% | ||
| ROIC | 8.9% |
ROA(3y)6.16%
ROA(5y)3.54%
ROE(3y)13.87%
ROE(5y)7.87%
ROIC(3y)11.1%
ROIC(5y)8.06%
1.3 Margins
Looking at the Profit Margin, with a value of 5.66%, SHEL is in line with its industry, outperforming 43.40% of the companies in the same industry.
SHEL's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 12.02%, SHEL perfoms like the industry average, outperforming 40.09% of the companies in the same industry.
In the last couple of years the Operating Margin of SHEL has grown nicely.
SHEL's Gross Margin of 25.61% is on the low side compared to the rest of the industry. SHEL is outperformed by 62.74% of its industry peers.
SHEL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.02% | ||
| PM (TTM) | 5.66% | ||
| GM | 25.61% |
OM growth 3Y6.72%
OM growth 5Y9.92%
PM growth 3Y-9.7%
PM growth 5Y4.27%
GM growth 3Y2.18%
GM growth 5Y6.18%
2. Health
2.1 Basic Checks
SHEL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
SHEL has less shares outstanding than it did 1 year ago.
SHEL has less shares outstanding than it did 5 years ago.
SHEL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.40 indicates that SHEL is not a great score, but indicates only limited risk for bankruptcy at the moment.
SHEL has a Altman-Z score of 2.40. This is in the better half of the industry: SHEL outperforms 76.42% of its industry peers.
SHEL has a debt to FCF ratio of 2.15. This is a good value and a sign of high solvency as SHEL would need 2.15 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.15, SHEL belongs to the best of the industry, outperforming 82.08% of the companies in the same industry.
SHEL has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
SHEL has a Debt to Equity ratio (0.35) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 2.15 | ||
| Altman-Z | 2.4 |
ROIC/WACC1.09
WACC8.17%
2.3 Liquidity
SHEL has a Current Ratio of 1.41. This is a normal value and indicates that SHEL is financially healthy and should not expect problems in meeting its short term obligations.
SHEL's Current ratio of 1.41 is fine compared to the rest of the industry. SHEL outperforms 63.21% of its industry peers.
SHEL has a Quick Ratio of 1.12. This is a normal value and indicates that SHEL is financially healthy and should not expect problems in meeting its short term obligations.
SHEL has a Quick ratio (1.12) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
SHEL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.79%.
Measured over the past years, SHEL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.99% on average per year.
SHEL shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.20%.
Measured over the past years, SHEL shows a decrease in Revenue. The Revenue has been decreasing by -3.79% on average per year.
EPS 1Y (TTM)-9.79%
EPS 3Y14.67%
EPS 5Y12.99%
EPS Q2Q%-45.21%
Revenue 1Y (TTM)-10.2%
Revenue growth 3Y2.83%
Revenue growth 5Y-3.79%
Sales Q2Q%-15.81%
3.2 Future
SHEL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.75% yearly.
Based on estimates for the next years, SHEL will show a decrease in Revenue. The Revenue will decrease by -2.00% on average per year.
EPS Next Y-2.72%
EPS Next 2Y2.74%
EPS Next 3Y5.75%
EPS Next 5Y8.75%
Revenue Next Year-2.92%
Revenue Next 2Y-1.55%
Revenue Next 3Y-2%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.35 indicates a reasonable valuation of SHEL.
74.06% of the companies in the same industry are more expensive than SHEL, based on the Price/Earnings ratio.
SHEL is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.58 indicates a reasonable valuation of SHEL.
Based on the Price/Forward Earnings ratio, SHEL is valued a bit cheaper than the industry average as 71.23% of the companies are valued more expensively.
SHEL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.35 | ||
| Fwd PE | 8.58 |
4.2 Price Multiples
75.94% of the companies in the same industry are more expensive than SHEL, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SHEL indicates a rather cheap valuation: SHEL is cheaper than 86.79% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.53 | ||
| EV/EBITDA | 3.79 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.64
EPS Next 2Y2.74%
EPS Next 3Y5.75%
5. Dividend
5.1 Amount
SHEL has a Yearly Dividend Yield of 4.31%, which is a nice return.
Compared to an average industry Dividend Yield of 7.52, SHEL has a dividend in line with its industry peers.
SHEL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.31% |
5.2 History
The dividend of SHEL decreases each year by -6.24%.
SHEL has been paying a dividend for at least 10 years, so it has a reliable track record.
SHEL has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-6.24%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
53.86% of the earnings are spent on dividend by SHEL. This is a bit on the high side, but may be sustainable.
DP53.86%
EPS Next 2Y2.74%
EPS Next 3Y5.75%
65.04
+1.01 (+1.58%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners36.89%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap193.71B
Analysts80.74
Price Target91.88 (41.27%)
Short Float %0.17%
Short Ratio1.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.31% |
Yearly Dividend1.37
Dividend Growth(5Y)-6.24%
DP53.86%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.77%
Min EPS beat(2)-29.22%
Max EPS beat(2)19.68%
EPS beat(4)3
Avg EPS beat(4)1.32%
Min EPS beat(4)-29.22%
Max EPS beat(4)19.68%
EPS beat(8)5
Avg EPS beat(8)0.75%
EPS beat(12)8
Avg EPS beat(12)2.92%
EPS beat(16)10
Avg EPS beat(16)1.83%
Revenue beat(2)0
Avg Revenue beat(2)-6.43%
Min Revenue beat(2)-8.85%
Max Revenue beat(2)-4.01%
Revenue beat(4)0
Avg Revenue beat(4)-9.55%
Min Revenue beat(4)-20.18%
Max Revenue beat(4)-4.01%
Revenue beat(8)1
Avg Revenue beat(8)-11.49%
Revenue beat(12)3
Avg Revenue beat(12)-7.52%
Revenue beat(16)3
Avg Revenue beat(16)-13.71%
PT rev (1m)2.89%
PT rev (3m)6.77%
EPS NQ rev (1m)-8.85%
EPS NQ rev (3m)-12.17%
EPS NY rev (1m)-5.04%
EPS NY rev (3m)-4.28%
Revenue NQ rev (1m)-13.59%
Revenue NQ rev (3m)-7.09%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.35 | ||
| Fwd PE | 8.58 | ||
| P/S | 0.68 | ||
| P/FCF | 5.53 | ||
| P/OCF | 3.55 | ||
| P/B | 1.05 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 3.79 |
EPS(TTM)7.79
EY11.98%
EPS(NY)7.58
Fwd EY11.65%
FCF(TTM)11.77
FCFY18.09%
OCF(TTM)18.34
OCFY28.2%
SpS95.35
BVpS62.18
TBVpS53.49
PEG (NY)N/A
PEG (5Y)0.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.08% | ||
| ROE | 8.68% | ||
| ROCE | 11.26% | ||
| ROIC | 8.9% | ||
| ROICexc | 10.18% | ||
| ROICexgc | 11.28% | ||
| OM | 12.02% | ||
| PM (TTM) | 5.66% | ||
| GM | 25.61% | ||
| FCFM | 12.34% |
ROA(3y)6.16%
ROA(5y)3.54%
ROE(3y)13.87%
ROE(5y)7.87%
ROIC(3y)11.1%
ROIC(5y)8.06%
ROICexc(3y)12.71%
ROICexc(5y)9.21%
ROICexgc(3y)14.06%
ROICexgc(5y)10.17%
ROCE(3y)14.09%
ROCE(5y)10.22%
ROICexcg growth 3Y12.83%
ROICexcg growth 5Y10.79%
ROICexc growth 3Y12.42%
ROICexc growth 5Y10.18%
OM growth 3Y6.72%
OM growth 5Y9.92%
PM growth 3Y-9.7%
PM growth 5Y4.27%
GM growth 3Y2.18%
GM growth 5Y6.18%
F-Score7
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 2.15 | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 72.94% | ||
| Cap/Sales | 6.89% | ||
| Interest Coverage | 7.5 | ||
| Cash Conversion | 89.6% | ||
| Profit Quality | 217.99% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 2.4 |
F-Score7
WACC8.17%
ROIC/WACC1.09
Cap/Depr(3y)89.47%
Cap/Depr(5y)74.12%
Cap/Sales(3y)6.69%
Cap/Sales(5y)7.31%
Profit Quality(3y)162.48%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-9.79%
EPS 3Y14.67%
EPS 5Y12.99%
EPS Q2Q%-45.21%
EPS Next Y-2.72%
EPS Next 2Y2.74%
EPS Next 3Y5.75%
EPS Next 5Y8.75%
Revenue 1Y (TTM)-10.2%
Revenue growth 3Y2.83%
Revenue growth 5Y-3.79%
Sales Q2Q%-15.81%
Revenue Next Year-2.92%
Revenue Next 2Y-1.55%
Revenue Next 3Y-2%
Revenue Next 5YN/A
EBIT growth 1Y-12.23%
EBIT growth 3Y9.74%
EBIT growth 5Y5.76%
EBIT Next Year48.76%
EBIT Next 3Y15.34%
EBIT Next 5Y10.84%
FCF growth 1Y12.46%
FCF growth 3Y10.36%
FCF growth 5Y12.81%
OCF growth 1Y0.91%
OCF growth 3Y6.63%
OCF growth 5Y5.33%