SHELL PLC (SHELL.AS) Stock Fundamental Analysis
AMS:SHELL - Euronext Amsterdam - GB00BP6MXD84 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to SHELL. SHELL was compared to 62 industry peers in the Oil, Gas & Consumable Fuels industry. SHELL has an average financial health and profitability rating. 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.
SHELL had a positive operating cash flow in the past year.
Of the past 5 years SHELL 4 years were profitable.
Each year in the past 5 years SHELL had a positive operating cash flow.
1.2 Ratios
SHELL has a Return On Assets (3.47%) which is in line with its industry peers.
SHELL has a Return On Equity (7.56%) which is comparable to the rest of the industry.
SHELL has a Return On Invested Capital (6.41%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for SHELL is significantly below the industry average of 14.65%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.47% | ||
| ROE | 7.56% | ||
| ROIC | 6.41% |
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
SHELL has a Profit Margin of 4.81%. This is in the lower half of the industry: SHELL underperforms 64.52% of its industry peers.
In the last couple of years the Profit Margin of SHELL has grown nicely.
The Operating Margin of SHELL (11.60%) is worse than 69.35% 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 25.21%, SHELL is doing worse than 75.81% of the companies in the same industry.
In the last couple of years the Gross Margin of SHELL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.6% | ||
| PM (TTM) | 4.81% | ||
| GM | 25.21% |
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 SHELL is still creating some value.
The number of shares outstanding for SHELL has been reduced compared to 1 year ago.
SHELL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for SHELL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.10 indicates that SHELL is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.10, SHELL perfoms like the industry average, outperforming 56.45% of the companies in the same industry.
The Debt to FCF ratio of SHELL is 2.45, which is a good value as it means it would take SHELL, 2.45 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.45, SHELL is doing good in the industry, outperforming 77.42% of the companies in the same industry.
SHELL has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
SHELL has a Debt to Equity ratio of 0.36. This is in the better half of the industry: SHELL outperforms 62.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.45 | ||
| Altman-Z | 2.1 |
ROIC/WACC0.87
WACC7.35%
2.3 Liquidity
SHELL has a Current Ratio of 1.32. 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 (1.32) which is comparable to the rest of the industry.
A Quick Ratio of 1.08 indicates that SHELL should not have too much problems paying its short term obligations.
The Quick ratio of SHELL (1.08) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
SHELL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.54%.
SHELL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.99% yearly.
The Revenue has decreased by -6.97% in the past year.
The Revenue has been decreasing by -3.79% on average over the past years.
EPS 1Y (TTM)-12.54%
EPS 3Y14.67%
EPS 5Y12.99%
EPS Q2Q%-23.33%
Revenue 1Y (TTM)-6.97%
Revenue growth 3Y2.83%
Revenue growth 5Y-3.79%
Sales Q2Q%-4.48%
3.2 Future
The Earnings Per Share is expected to grow by 8.75% on average over the next years. This is quite good.
SHELL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.47% yearly.
EPS Next Y-2.58%
EPS Next 2Y3.05%
EPS Next 3Y4.54%
EPS Next 5Y8.75%
Revenue Next Year-5.34%
Revenue Next 2Y-2.47%
Revenue Next 3Y0.47%
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 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
SHELL is valuated reasonably with a Price/Earnings ratio of 10.13.
Based on the Price/Earnings ratio, SHELL is valued a bit cheaper than the industry average as 62.90% of the companies are valued more expensively.
SHELL is valuated cheaply when we compare the Price/Earnings ratio to 26.98, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.84, the valuation of SHELL can be described as reasonable.
SHELL's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of SHELL to the average of the S&P500 Index (21.49), we can say SHELL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.13 | ||
| Fwd PE | 8.84 |
4.2 Price Multiples
SHELL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SHELL is cheaper than 72.58% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SHELL is valued cheaper than 90.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.32 | ||
| EV/EBITDA | 3.08 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.78
EPS Next 2Y3.05%
EPS Next 3Y4.54%
5. Dividend
5.1 Amount
SHELL has a Yearly Dividend Yield of 3.97%.
SHELL's Dividend Yield is comparable with the industry average which is at 56.55.
SHELL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
5.2 History
The dividend of SHELL decreases each year by -6.24%.
Dividend Growth(5Y)-6.24%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
63.90% of the earnings are spent on dividend by SHELL. This is not a sustainable payout ratio.
DP63.9%
EPS Next 2Y3.05%
EPS Next 3Y4.54%
AMS:SHELL (6/30/2025, 5:36:15 PM)
29.99
-0.45 (-1.48%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners35.27%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap88.61B
Analysts80
Price Target37.91 (26.41%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
Yearly Dividend1.17
Dividend Growth(5Y)-6.24%
DP63.9%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-16.83%
Min EPS beat(2)-29.22%
Max EPS beat(2)-4.43%
EPS beat(4)2
Avg EPS beat(4)-1.81%
Min EPS beat(4)-29.22%
Max EPS beat(4)19.68%
EPS beat(8)4
Avg EPS beat(8)-0.97%
EPS beat(12)8
Avg EPS beat(12)2.73%
EPS beat(16)10
Avg EPS beat(16)2.32%
Revenue beat(2)0
Avg Revenue beat(2)-11.11%
Min Revenue beat(2)-13.37%
Max Revenue beat(2)-8.85%
Revenue beat(4)0
Avg Revenue beat(4)-7.85%
Min Revenue beat(4)-13.37%
Max Revenue beat(4)-4.01%
Revenue beat(8)1
Avg Revenue beat(8)-8.11%
Revenue beat(12)3
Avg Revenue beat(12)-7.71%
Revenue beat(16)3
Avg Revenue beat(16)-13.19%
PT rev (1m)-5.48%
PT rev (3m)-9.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.7%
EPS NY rev (1m)0%
EPS NY rev (3m)0.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-12.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.13 | ||
| Fwd PE | 8.84 | ||
| P/S | 0.37 | ||
| P/FCF | 3.32 | ||
| P/OCF | 2.05 | ||
| P/B | 0.58 | ||
| P/tB | 0.69 | ||
| EV/EBITDA | 3.08 |
EPS(TTM)2.96
EY9.87%
EPS(NY)3.39
Fwd EY11.31%
FCF(TTM)9.04
FCFY30.15%
OCF(TTM)14.64
OCFY48.82%
SpS81.28
BVpS51.71
TBVpS43.77
PEG (NY)N/A
PEG (5Y)0.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.47% | ||
| ROE | 7.56% | ||
| ROCE | 11.12% | ||
| ROIC | 6.41% | ||
| ROICexc | 6.41% | ||
| ROICexgc | 7.08% | ||
| OM | 11.6% | ||
| PM (TTM) | 4.81% | ||
| GM | 25.21% | ||
| FCFM | 11.12% |
ROA(3y)6.16%
ROA(5y)3.54%
ROE(3y)13.87%
ROE(5y)7.87%
ROIC(3y)8.04%
ROIC(5y)5.84%
ROICexc(3y)9.19%
ROICexc(5y)6.67%
ROICexgc(3y)10.16%
ROICexgc(5y)7.37%
ROCE(3y)13.98%
ROCE(5y)10.15%
ROICexcg growth 3Y11.44%
ROICexcg growth 5Y9.96%
ROICexc growth 3Y11.06%
ROICexc growth 5Y9.38%
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%
F-Score6
Asset Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.45 | ||
| Debt/EBITDA | 1.1 | ||
| Cap/Depr | 73.28% | ||
| Cap/Sales | 6.89% | ||
| Interest Coverage | 7.26 | ||
| Cash Conversion | 85.79% | ||
| Profit Quality | 231.34% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 2.1 |
F-Score6
WACC7.35%
ROIC/WACC0.87
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)-12.54%
EPS 3Y14.67%
EPS 5Y12.99%
EPS Q2Q%-23.33%
EPS Next Y-2.58%
EPS Next 2Y3.05%
EPS Next 3Y4.54%
EPS Next 5Y8.75%
Revenue 1Y (TTM)-6.97%
Revenue growth 3Y2.83%
Revenue growth 5Y-3.79%
Sales Q2Q%-4.48%
Revenue Next Year-5.34%
Revenue Next 2Y-2.47%
Revenue Next 3Y0.47%
Revenue Next 5YN/A
EBIT growth 1Y-7.09%
EBIT growth 3Y8.68%
EBIT growth 5Y5.15%
EBIT Next Year42.26%
EBIT Next 3Y12.68%
EBIT Next 5Y9.28%
FCF growth 1Y-27.68%
FCF growth 3Y10.36%
FCF growth 5Y12.81%
OCF growth 1Y-25.27%
OCF growth 3Y6.63%
OCF growth 5Y5.33%