SHELL PLC (SHELL.AS) Stock Fundamental Analysis
AMS:SHELL - Euronext Amsterdam - GB00BP6MXD84 - Common Stock - Currency: EUR
Overall SHELL gets a fundamental rating of 5 out of 10. We evaluated SHELL against 62 industry peers in the Oil, Gas & Consumable Fuels industry. SHELL has only an average score on both its financial health and profitability. SHELL is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year SHELL was profitable.
In the past year SHELL had a positive cash flow from operations.
SHELL had positive earnings in 4 of the past 5 years.
SHELL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 4.08%, SHELL perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
With a Return On Equity value of 8.68%, SHELL perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
SHELL's Return On Invested Capital of 6.50% is in line compared to the rest of the industry. SHELL outperforms 49.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SHELL is below the industry average of 11.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.08% | ||
| ROE | 8.68% | ||
| ROIC | 6.5% |
ROA(3y)6.16%
ROA(5y)3.54%
ROE(3y)13.87%
ROE(5y)7.87%
ROIC(3y)8.11%
ROIC(5y)5.88%
1.3 Margins
The Profit Margin of SHELL (5.66%) is worse than 61.90% of its industry peers.
SHELL's Profit Margin has improved in the last couple of years.
The Operating Margin of SHELL (12.02%) is worse than 65.08% of its industry peers.
SHELL's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 25.61%, SHELL is doing worse than 66.67% of the companies in the same industry.
SHELL'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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SHELL is creating some value.
Compared to 1 year ago, SHELL has less shares outstanding
SHELL has less shares outstanding than it did 5 years ago.
SHELL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.13 indicates that SHELL is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of SHELL (2.13) is better than 63.49% of its industry peers.
SHELL has a debt to FCF ratio of 2.15. This is a good value and a sign of high solvency as SHELL would need 2.15 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.15, SHELL is in the better half of the industry, outperforming 79.37% of the companies in the same industry.
SHELL has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
SHELL has a Debt to Equity ratio of 0.35. This is in the better half of the industry: SHELL outperforms 69.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 2.15 | ||
| Altman-Z | 2.13 |
ROIC/WACC0.94
WACC6.88%
2.3 Liquidity
SHELL has a Current Ratio of 1.41. This is a normal value and indicates that SHELL is financially healthy and should not expect problems in meeting its short term obligations.
SHELL has a Current ratio (1.41) which is in line with its industry peers.
SHELL has a Quick Ratio of 1.12. This is a normal value and indicates that SHELL is financially healthy and should not expect problems in meeting its short term obligations.
SHELL's Quick ratio of 1.12 is in line compared to the rest of the industry. SHELL outperforms 53.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The earnings per share for SHELL have decreased by -9.79% in the last year.
SHELL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.99% yearly.
SHELL shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.20%.
Measured over the past years, SHELL 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
SHELL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.62% yearly.
SHELL is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.00% yearly.
EPS Next Y3.11%
EPS Next 2Y3.72%
EPS Next 3Y5.17%
EPS Next 5Y13.62%
Revenue Next Year-2.92%
Revenue Next 2Y-1.55%
Revenue Next 3Y-2%
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 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 8.91 indicates a reasonable valuation of SHELL.
SHELL's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of SHELL to the average of the S&P500 Index (29.35), we can say SHELL is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.63, the valuation of SHELL can be described as reasonable.
SHELL's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, SHELL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.91 | ||
| Fwd PE | 8.63 |
4.2 Price Multiples
79.37% of the companies in the same industry are more expensive than SHELL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SHELL is valued cheaply inside the industry as 87.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.85 | ||
| EV/EBITDA | 2.25 |
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)2.86
PEG (5Y)0.69
EPS Next 2Y3.72%
EPS Next 3Y5.17%
5. Dividend
5.1 Amount
SHELL has a Yearly Dividend Yield of 4.26%, which is a nice return.
SHELL's Dividend Yield is comparable with the industry average which is at 60.92.
SHELL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
5.2 History
The dividend of SHELL decreases each year by -6.24%.
Dividend Growth(5Y)-6.24%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
53.86% of the earnings are spent on dividend by SHELL. This is a bit on the high side, but may be sustainable.
DP53.86%
EPS Next 2Y3.72%
EPS Next 3Y5.17%
AMS:SHELL (3/7/2025, 7:00:00 PM)
30.635
+0.18 (+0.57%)
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 Cap91.94B
Analysts80.77
Price Target42.56 (38.93%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
Yearly Dividend1.26
Dividend Growth(5Y)-6.24%
DP53.86%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)3.19%
PT rev (3m)3.4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.7%
EPS NY rev (1m)0.07%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)7.52%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-2.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.91 | ||
| Fwd PE | 8.63 | ||
| P/S | 0.35 | ||
| P/FCF | 2.85 | ||
| P/OCF | 1.83 | ||
| P/B | 0.54 | ||
| P/tB | 0.63 | ||
| EV/EBITDA | 2.25 |
EPS(TTM)3.44
EY11.23%
EPS(NY)3.55
Fwd EY11.59%
FCF(TTM)10.77
FCFY35.15%
OCF(TTM)16.78
OCFY54.78%
SpS87.26
BVpS56.9
TBVpS48.95
PEG (NY)2.86
PEG (5Y)0.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.08% | ||
| ROE | 8.68% | ||
| ROCE | 11.26% | ||
| ROIC | 6.5% | ||
| ROICexc | 7.43% | ||
| ROICexgc | 8.24% | ||
| 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)8.11%
ROIC(5y)5.88%
ROICexc(3y)9.28%
ROICexc(5y)6.72%
ROICexgc(3y)10.27%
ROICexgc(5y)7.43%
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 | 2.13 |
F-Score7
WACC6.88%
ROIC/WACC0.94
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 Y3.11%
EPS Next 2Y3.72%
EPS Next 3Y5.17%
EPS Next 5Y13.62%
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 Year51.34%
EBIT Next 3Y13.82%
EBIT Next 5Y9.43%
FCF growth 1Y12.46%
FCF growth 3Y10.36%
FCF growth 5Y12.81%
OCF growth 1Y0.91%
OCF growth 3Y6.63%
OCF growth 5Y5.33%