SHELL PLC (SHELL.AS)
GB00BP6MXD84 - Common Stock
SHELL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 61 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of SHELL get a neutral evaluation. Nothing too spectacular is happening here. SHELL has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
SHELL had positive earnings in the past year.
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
SHELL has a Return On Assets of 4.66%. This is comparable to the rest of the industry: SHELL outperforms 45.76% of its industry peers.
SHELL has a Return On Equity of 9.92%. This is in the lower half of the industry: SHELL underperforms 67.80% of its industry peers.
With a Return On Invested Capital value of 7.86%, SHELL perfoms like the industry average, outperforming 52.54% of the companies in the same industry.
SHELL had an Average Return On Invested Capital over the past 3 years of 8.18%. This is below the industry average of 12.41%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.66% | ||
| ROE | 9.92% | ||
| ROIC | 7.86% |
ROA(3y)6.43%
ROA(5y)3.5%
ROE(3y)14.76%
ROE(5y)7.76%
ROIC(3y)8.18%
ROIC(5y)5.96%
1.3 Margins
With a Profit Margin value of 6.09%, SHELL is not doing good in the industry: 69.49% of the companies in the same industry are doing better.
SHELL's Profit Margin has been stable in the last couple of years.
With a Operating Margin value of 12.50%, SHELL is not doing good in the industry: 66.10% of the companies in the same industry are doing better.
SHELL's Operating Margin has improved in the last couple of years.
SHELL has a worse Gross Margin (25.58%) than 71.19% of its industry peers.
SHELL'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 3Y147.55%
OM growth 5Y8.81%
PM growth 3YN/A
PM growth 5Y0.34%
GM growth 3Y4.3%
GM growth 5Y7.52%
2. Health
2.1 Basic Checks
SHELL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
SHELL has less shares outstanding than it did 1 year ago.
SHELL has less shares outstanding than it did 5 years ago.
SHELL has a worse debt/assets ratio than last year.
2.2 Solvency
SHELL has an Altman-Z score of 2.20. This is not the best score and indicates that SHELL is in the grey zone with still only limited risk for bankruptcy at the moment.
SHELL has a Altman-Z score of 2.20. This is comparable to the rest of the industry: SHELL outperforms 59.32% of its industry peers.
The Debt to FCF ratio of SHELL is 2.43, which is a good value as it means it would take SHELL, 2.43 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SHELL (2.43) is better than 74.58% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that SHELL is not too dependend on debt financing.
The Debt to Equity ratio of SHELL (0.35) is better than 64.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 2.43 | ||
| Altman-Z | 2.2 |
ROIC/WACC1.2
WACC6.53%
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.
The Current ratio of SHELL (1.41) is comparable to the rest of the industry.
A Quick Ratio of 1.12 indicates that SHELL should not have too much problems paying its short term obligations.
SHELL 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 SHELL have decreased by -5.06% 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 9.95% yearly.
SHELL shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.51%.
Measured over the past years, SHELL shows a decrease in Revenue. The Revenue has been decreasing by -4.00% on average per year.
EPS 1Y (TTM)-5.06%
EPS 3Y88.38%
EPS 5Y9.95%
EPS Q2Q%3.23%
Revenue 1Y (TTM)-12.51%
Revenue growth 3Y20.59%
Revenue growth 5Y-4%
Sales Q2Q%-6.89%
3.2 Future
SHELL is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.92% yearly.
SHELL is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.73% yearly.
EPS Next Y-0.47%
EPS Next 2Y-3.69%
EPS Next 3Y-0.9%
EPS Next 5Y-3.92%
Revenue Next Year0.95%
Revenue Next 2Y-3.79%
Revenue Next 3Y-1.86%
Revenue Next 5Y-4.73%
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.
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
A Price/Earnings ratio of 7.63 indicates a rather cheap valuation of SHELL.
The rest of the industry has a similar Price/Earnings ratio as SHELL.
SHELL is valuated cheaply when we compare the Price/Earnings ratio to 27.48, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.38 indicates a reasonable valuation of SHELL.
The rest of the industry has a similar Price/Forward Earnings ratio as SHELL.
SHELL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.63 | ||
| Fwd PE | 8.38 |
4.2 Price Multiples
79.66% 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 cheaper than 88.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.16 | ||
| EV/EBITDA | 1.98 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.77
EPS Next 2Y-3.69%
EPS Next 3Y-0.9%
5. Dividend
5.1 Amount
SHELL has a Yearly Dividend Yield of 4.40%, which is a nice return.
Compared to an average industry Dividend Yield of 62.98, SHELL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, SHELL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
5.2 History
The dividend of SHELL decreases each year by -8.18%.
Dividend Growth(5Y)-8.18%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
SHELL pays out 47.67% of its income as dividend. This is a bit on the high side, but may be sustainable.
The Dividend Rate of SHELL has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP47.67%
EPS Next 2Y-3.69%
EPS Next 3Y-0.9%
SHELL PLC
AMS:SHELL (1/3/2025, 7:00:00 PM)
31.285
+0.48 (+1.54%)
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 Cap95.33B
Analysts79.2
Price Target41.43 (32.43%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.4% |
Dividend Growth(5Y)-8.18%
DP47.67%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)0.88%
PT rev (3m)-1.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.14%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.01%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.63 | ||
| Fwd PE | 8.38 | ||
| P/S | 0.33 | ||
| P/FCF | 3.16 | ||
| P/OCF | 1.9 | ||
| P/B | 0.53 | ||
| P/tB | 0.62 | ||
| EV/EBITDA | 1.98 |
EPS(TTM)4.1
EY13.11%
EPS(NY)3.73
Fwd EY11.93%
FCF(TTM)9.91
FCFY31.67%
OCF(TTM)16.49
OCFY52.7%
SpS96.24
BVpS59.08
TBVpS50.82
PEG (NY)N/A
PEG (5Y)0.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.66% | ||
| ROE | 9.92% | ||
| ROCE | 12.45% | ||
| ROIC | 7.86% | ||
| ROICexc | 9% | ||
| ROICexgc | 9.97% | ||
| OM | 12.5% | ||
| PM (TTM) | 6.09% | ||
| GM | 25.58% | ||
| FCFM | 10.3% |
ROA(3y)6.43%
ROA(5y)3.5%
ROE(3y)14.76%
ROE(5y)7.76%
ROIC(3y)8.18%
ROIC(5y)5.96%
ROICexc(3y)9.32%
ROICexc(5y)6.71%
ROICexgc(3y)10.28%
ROICexgc(5y)7.37%
ROCE(3y)12.98%
ROCE(5y)9.47%
ROICexcg growth 3Y203.37%
ROICexcg growth 5Y6.54%
ROICexc growth 3Y201.41%
ROICexc growth 5Y6.11%
OM growth 3Y147.55%
OM growth 5Y8.81%
PM growth 3YN/A
PM growth 5Y0.34%
GM growth 3Y4.3%
GM growth 5Y7.52%
F-Score6
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 | 2.2 |
F-Score6
WACC6.53%
ROIC/WACC1.2
Cap/Depr(3y)88.68%
Cap/Depr(5y)75.54%
Cap/Sales(3y)6.82%
Cap/Sales(5y)7.26%
Profit Quality(3y)133.1%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.06%
EPS 3Y88.38%
EPS 5Y9.95%
EPS Q2Q%3.23%
EPS Next Y-0.47%
EPS Next 2Y-3.69%
EPS Next 3Y-0.9%
EPS Next 5Y-3.92%
Revenue 1Y (TTM)-12.51%
Revenue growth 3Y20.59%
Revenue growth 5Y-4%
Sales Q2Q%-6.89%
Revenue Next Year0.95%
Revenue Next 2Y-3.79%
Revenue Next 3Y-1.86%
Revenue Next 5Y-4.73%
EBIT growth 1Y-22.55%
EBIT growth 3Y198.53%
EBIT growth 5Y4.46%
EBIT Next Year48.29%
EBIT Next 3Y9.95%
EBIT Next 5Y5.05%
FCF growth 1Y-13.3%
FCF growth 3Y21.21%
FCF growth 5Y0.74%
OCF growth 1Y-10.27%
OCF growth 3Y16.69%
OCF growth 5Y0.41%