SHELL PLC-ADR (SHEL) Stock Fundamental Analysis
NYSE:SHEL - New York Stock Exchange, Inc. - US7802593050 - ADR - Currency: USD
Taking everything into account, SHEL scores 5 out of 10 in our fundamental rating. SHEL was compared to 212 industry peers in the Oil, Gas & Consumable Fuels industry. SHEL has only an average score on both its financial health and profitability. SHEL is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
SHEL had positive earnings in the past year.
In the past year SHEL had a positive cash flow from operations.
SHEL had positive earnings in 4 of the past 5 years.
SHEL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SHEL has a Return On Assets (4.66%) which is in line with its industry peers.
SHEL has a Return On Equity (9.92%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 9.84%, SHEL is in the better half of the industry, outperforming 65.53% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SHEL is significantly below the industry average of 28.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.66% | ||
| ROE | 9.92% | ||
| ROIC | 9.84% |
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
SHEL has a worse Profit Margin (6.09%) than 60.68% of its industry peers.
In the last couple of years the Profit Margin of SHEL has grown nicely.
The Operating Margin of SHEL (12.50%) is worse than 61.16% of its industry peers.
SHEL's Operating Margin has improved in the last couple of years.
The Gross Margin of SHEL (25.58%) is worse than 62.62% of its industry peers.
SHEL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.5% | ||
| PM (TTM) | 6.09% | ||
| GM | 25.58% |
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.
Compared to 1 year ago, SHEL has less shares outstanding
SHEL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SHEL has been reduced compared to a year ago.
2.2 Solvency
SHEL has an Altman-Z score of 2.49. This is not the best score and indicates that SHEL is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.49, SHEL is in the better half of the industry, outperforming 68.93% of the companies in the same industry.
SHEL has a debt to FCF ratio of 2.43. This is a good value and a sign of high solvency as SHEL would need 2.43 years to pay back of all of its debts.
The Debt to FCF ratio of SHEL (2.43) is better than 73.30% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that SHEL is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.35, SHEL perfoms like the industry average, outperforming 54.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 2.43 | ||
| Altman-Z | 2.49 |
ROIC/WACC1.29
WACC7.65%
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.
Looking at the Current ratio, with a value of 1.41, SHEL is in line with its industry, outperforming 58.74% of the companies in the same industry.
A Quick Ratio of 1.12 indicates that SHEL should not have too much problems paying 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
The earnings per share for SHEL have decreased by -9.79% in the last year.
The Earnings Per Share has been growing by 12.99% on average over the past years. This is quite good.
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
Based on estimates for the next years, SHEL will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.40% on average per year.
The Revenue is expected to decrease by -4.09% on average over the next years.
EPS Next Y3.04%
EPS Next 2Y3.29%
EPS Next 3Y3.35%
EPS Next 5Y13.4%
Revenue Next Year-3.07%
Revenue Next 2Y0.02%
Revenue Next 3Y-4.09%
Revenue Next 5YN/A
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 stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.61, the valuation of SHEL can be described as very reasonable.
74.27% of the companies in the same industry are more expensive than SHEL, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of SHEL to the average of the S&P500 Index (28.47), we can say SHEL is valued rather cheaply.
A Price/Forward Earnings ratio of 8.35 indicates a reasonable valuation of SHEL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SHEL indicates a somewhat cheap valuation: SHEL is cheaper than 73.79% of the companies listed in the same industry.
SHEL is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.61 | ||
| Fwd PE | 8.35 |
4.2 Price Multiples
79.13% 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 81.07% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.47 | ||
| EV/EBITDA | 3.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.83
PEG (5Y)0.66
EPS Next 2Y3.29%
EPS Next 3Y3.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.26%, SHEL is a good candidate for dividend investing.
SHEL's Dividend Yield is a higher than the industry average which is at 6.57.
Compared to an average S&P500 Dividend Yield of 2.28, SHEL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
5.2 History
The dividend of SHEL decreases each year by -6.24%.
SHEL has paid a dividend for at least 10 years, which is 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
SHEL pays out 47.67% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP47.67%
EPS Next 2Y3.29%
EPS Next 3Y3.35%
SHELL PLC-ADR
NYSE:SHEL (2/5/2025, 5:19:08 PM)
After market: 66.53 0 (0%)66.53
-0.1 (-0.15%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners37.33%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap201.24B
Analysts80.77
Price Target86.85 (30.54%)
Short Float %0.2%
Short Ratio1.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
Yearly Dividend1.37
Dividend Growth(5Y)-6.24%
DP47.67%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.42%
Min EPS beat(2)6.74%
Max EPS beat(2)8.1%
EPS beat(4)3
Avg EPS beat(4)5.61%
Min EPS beat(4)-1.7%
Max EPS beat(4)9.28%
EPS beat(8)6
Avg EPS beat(8)4.86%
EPS beat(12)8
Avg EPS beat(12)3.26%
EPS beat(16)11
Avg EPS beat(16)503.06%
Revenue beat(2)0
Avg Revenue beat(2)-12.67%
Min Revenue beat(2)-20.18%
Max Revenue beat(2)-5.16%
Revenue beat(4)0
Avg Revenue beat(4)-11.8%
Min Revenue beat(4)-20.18%
Max Revenue beat(4)-5.16%
Revenue beat(8)3
Avg Revenue beat(8)-8.07%
Revenue beat(12)3
Avg Revenue beat(12)-11.75%
Revenue beat(16)4
Avg Revenue beat(16)-13.38%
PT rev (1m)0.94%
PT rev (3m)-2.81%
EPS NQ rev (1m)-0.5%
EPS NQ rev (3m)-0.5%
EPS NY rev (1m)0.95%
EPS NY rev (3m)-0.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-2.23%
Revenue NY rev (3m)-2.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.61 | ||
| Fwd PE | 8.35 | ||
| P/S | 0.67 | ||
| P/FCF | 6.47 | ||
| P/OCF | 3.89 | ||
| P/B | 1.09 | ||
| P/tB | 1.26 | ||
| EV/EBITDA | 3.5 |
EPS(TTM)7.73
EY11.62%
EPS(NY)7.97
Fwd EY11.98%
FCF(TTM)10.28
FCFY15.45%
OCF(TTM)17.11
OCFY25.71%
SpS99.85
BVpS61.29
TBVpS52.72
PEG (NY)2.83
PEG (5Y)0.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.66% | ||
| ROE | 9.92% | ||
| ROCE | 12.45% | ||
| ROIC | 9.84% | ||
| ROICexc | 11.25% | ||
| ROICexgc | 12.47% | ||
| OM | 12.5% | ||
| PM (TTM) | 6.09% | ||
| GM | 25.58% | ||
| FCFM | 10.3% |
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 Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 2.43 | ||
| Debt/EBITDA | 0.95 | ||
| Cap/Depr | 67.53% | ||
| Cap/Sales | 6.83% | ||
| Interest Coverage | 8.19 | ||
| Cash Conversion | 75.72% | ||
| Profit Quality | 169.09% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 2.49 |
F-Score7
WACC7.65%
ROIC/WACC1.29
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 Y3.04%
EPS Next 2Y3.29%
EPS Next 3Y3.35%
EPS Next 5Y13.4%
Revenue 1Y (TTM)-10.2%
Revenue growth 3Y2.83%
Revenue growth 5Y-3.79%
Sales Q2Q%-15.81%
Revenue Next Year-3.07%
Revenue Next 2Y0.02%
Revenue Next 3Y-4.09%
Revenue Next 5YN/A
EBIT growth 1Y-22.55%
EBIT growth 3Y9.74%
EBIT growth 5Y5.76%
EBIT Next Year48.3%
EBIT Next 3Y13.05%
EBIT Next 5Y8.99%
FCF growth 1Y-25.56%
FCF growth 3Y10.36%
FCF growth 5Y12.81%
OCF growth 1Y-19.45%
OCF growth 3Y6.63%
OCF growth 5Y5.33%