SHELL PLC-ADR (SHEL) Stock Fundamental Analysis
NYSE:SHEL - US7802593050 - ADR
71.6 USD
-0.71 (-0.98%)
71.6 USD
0 (0%)
SHEL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 209 industry peers in the Oil, Gas & Consumable Fuels industry. SHEL has an average financial health and profitability rating. SHEL has a valuation in line with the averages, but on the other hand it scores bad on growth.
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 (3.47%) which is comparable to the rest of the industry.
With a Return On Equity value of 7.56%, SHEL perfoms like the industry average, outperforming 51.67% of the companies in the same industry.
SHEL has a Return On Invested Capital of 8.78%. This is in the better half of the industry: SHEL outperforms 75.60% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SHEL is significantly below the industry average of 21.91%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.47% | ||
| ROE | 7.56% | ||
| ROIC | 8.78% |
ROA(3y)6.16%
ROA(5y)3.54%
ROE(3y)13.87%
ROE(5y)7.87%
ROIC(3y)11.01%
ROIC(5y)8%
1.3 Margins
SHEL's Profit Margin of 4.81% is in line compared to the rest of the industry. SHEL outperforms 44.02% of its industry peers.
In the last couple of years the Profit Margin of SHEL has grown nicely.
SHEL has a Operating Margin (11.60%) which is in line with its industry peers.
SHEL's Operating Margin has improved in the last couple of years.
SHEL has a worse Gross Margin (25.21%) than 64.11% of its industry peers.
In the last couple of years the Gross Margin of SHEL 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), SHEL is creating some value.
The number of shares outstanding for SHEL has been reduced compared to 1 year ago.
The number of shares outstanding for SHEL has been reduced compared to 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.
With a decent Altman-Z score value of 2.40, SHEL is doing good in the industry, outperforming 73.68% of the companies in the same industry.
The Debt to FCF ratio of SHEL is 2.45, which is a good value as it means it would take SHEL, 2.45 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of SHEL (2.45) is better than 79.43% of its industry peers.
SHEL has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.36, SHEL perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.45 | ||
| Altman-Z | 2.4 |
ROIC/WACC1.05
WACC8.37%
2.3 Liquidity
A Current Ratio of 1.32 indicates that SHEL should not have too much problems paying its short term obligations.
SHEL has a Current ratio of 1.32. This is in the better half of the industry: SHEL outperforms 61.72% of its industry peers.
A Quick Ratio of 1.08 indicates that SHEL should not have too much problems paying its short term obligations.
SHEL has a Quick ratio (1.08) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
The earnings per share for SHEL have decreased strongly by -23.98% in the last year.
SHEL 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 -9.94% in the past year.
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)-23.98%
EPS 3Y14.67%
EPS 5Y12.99%
EPS Q2Q%-27.27%
Revenue 1Y (TTM)-9.94%
Revenue growth 3Y2.83%
Revenue growth 5Y-3.79%
Sales Q2Q%-12.16%
3.2 Future
Based on estimates for the next years, SHEL will show a small growth in Earnings Per Share. The EPS will grow by 3.40% on average per year.
Based on estimates for the next years, SHEL will show a small growth in Revenue. The Revenue will grow by 0.14% on average per year.
EPS Next Y-12.77%
EPS Next 2Y-2.08%
EPS Next 3Y1.74%
EPS Next 5Y3.4%
Revenue Next Year-7.58%
Revenue Next 2Y-3.66%
Revenue Next 3Y0.14%
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
Based on the Price/Earnings ratio of 10.88, the valuation of SHEL can be described as reasonable.
SHEL's Price/Earnings ratio is a bit cheaper when compared to the industry. SHEL is cheaper than 72.73% of the companies in the same industry.
SHEL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.06.
Based on the Price/Forward Earnings ratio of 9.67, the valuation of SHEL can be described as reasonable.
70.81% of the companies in the same industry are more expensive than SHEL, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.69. SHEL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.88 | ||
| Fwd PE | 9.67 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SHEL indicates a somewhat cheap valuation: SHEL is cheaper than 77.03% of the companies listed in the same industry.
SHEL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SHEL is cheaper than 87.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.66 | ||
| EV/EBITDA | 4.86 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.84
EPS Next 2Y-2.08%
EPS Next 3Y1.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.86%, SHEL has a reasonable but not impressive dividend return.
SHEL's Dividend Yield is comparable with the industry average which is at 6.06.
Compared to an average S&P500 Dividend Yield of 2.32, SHEL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
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
SHEL pays out 63.90% of its income as dividend. This is not a sustainable payout ratio.
DP63.9%
EPS Next 2Y-2.08%
EPS Next 3Y1.74%
71.6
-0.71 (-0.98%)
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 Cap208.23B
Analysts77.69
Price Target87.93 (22.81%)
Short Float %0.33%
Short Ratio2.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.86% |
Yearly Dividend1.37
Dividend Growth(5Y)-6.24%
DP63.9%
Div Incr Years3
Div Non Decr Years3
Ex-Date
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)1.46%
PT rev (3m)-3.99%
EPS NQ rev (1m)-0.79%
EPS NQ rev (3m)-13.95%
EPS NY rev (1m)-11.17%
EPS NY rev (3m)-10.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.85%
Revenue NY rev (1m)-1.9%
Revenue NY rev (3m)-2.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.88 | ||
| Fwd PE | 9.67 | ||
| P/S | 0.74 | ||
| P/FCF | 6.66 | ||
| P/OCF | 4.11 | ||
| P/B | 1.16 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | 4.86 |
EPS(TTM)6.58
EY9.19%
EPS(NY)7.4
Fwd EY10.34%
FCF(TTM)10.75
FCFY15.02%
OCF(TTM)17.41
OCFY24.32%
SpS96.65
BVpS61.49
TBVpS52.05
PEG (NY)N/A
PEG (5Y)0.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.47% | ||
| ROE | 7.56% | ||
| ROCE | 11.12% | ||
| ROIC | 8.78% | ||
| ROICexc | 8.78% | ||
| ROICexgc | 9.69% | ||
| 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)11.01%
ROIC(5y)8%
ROICexc(3y)12.58%
ROICexc(5y)9.13%
ROICexgc(3y)13.91%
ROICexgc(5y)10.08%
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 | 2.4 |
F-Score6
WACC8.37%
ROIC/WACC1.05
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)-23.98%
EPS 3Y14.67%
EPS 5Y12.99%
EPS Q2Q%-27.27%
EPS Next Y-12.77%
EPS Next 2Y-2.08%
EPS Next 3Y1.74%
EPS Next 5Y3.4%
Revenue 1Y (TTM)-9.94%
Revenue growth 3Y2.83%
Revenue growth 5Y-3.79%
Sales Q2Q%-12.16%
Revenue Next Year-7.58%
Revenue Next 2Y-3.66%
Revenue Next 3Y0.14%
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 5Y8.3%
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%