SHELL PLC-ADR (SHEL) Stock Fundamental Analysis
NYSE:SHEL - New York Stock Exchange, Inc. - US7802593050 - ADR - Currency: USD
We assign a fundamental rating of 5 out of 10 to SHEL. SHEL was compared to 213 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
In the past year SHEL was profitable.
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
Looking at the Return On Assets, with a value of 3.47%, SHEL is in line with its industry, outperforming 50.70% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.56%, SHEL is in line with its industry, outperforming 49.30% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.78%, SHEL is doing good in the industry, outperforming 71.36% of the companies in the same industry.
SHEL had an Average Return On Invested Capital over the past 3 years of 11.01%. This is significantly below the industry average of 23.55%.
| 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
The Profit Margin of SHEL (4.81%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of SHEL has grown nicely.
The Operating Margin of SHEL (11.60%) is comparable to the rest of the industry.
SHEL's Operating Margin has improved in the last couple of years.
SHEL has a worse Gross Margin (25.21%) than 62.91% of its industry peers.
SHEL's Gross Margin has improved in the last couple of years.
| 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 SHEL is still 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.
The debt/assets ratio for SHEL has been reduced compared to a year ago.
2.2 Solvency
SHEL has an Altman-Z score of 2.41. 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.
SHEL has a better Altman-Z score (2.41) than 73.71% of its industry peers.
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.
SHEL has a better Debt to FCF ratio (2.45) than 79.81% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that SHEL is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.36, SHEL perfoms like the industry average, outperforming 56.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.45 | ||
| Altman-Z | 2.41 |
ROIC/WACC1.06
WACC8.31%
2.3 Liquidity
SHEL has a Current Ratio of 1.32. This is a normal value and indicates that SHEL is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.32, SHEL perfoms like the industry average, outperforming 59.15% of the companies in the same industry.
SHEL has a Quick Ratio of 1.08. This is a normal value and indicates that SHEL is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of SHEL (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
SHEL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.54%.
SHEL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.99% yearly.
SHEL shows a decrease in Revenue. In the last year, the revenue decreased by -6.97%.
SHEL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.79% yearly.
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.
The Revenue is expected to grow by 0.47% on average over the next years.
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.
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
With a Price/Earnings ratio of 10.15, the valuation of SHEL can be described as very reasonable.
SHEL's Price/Earnings ratio is a bit cheaper when compared to the industry. SHEL is cheaper than 73.71% of the companies in the same industry.
When comparing the Price/Earnings ratio of SHEL to the average of the S&P500 Index (26.35), we can say SHEL is valued rather cheaply.
The Price/Forward Earnings ratio is 8.85, which indicates a very decent valuation of SHEL.
73.24% 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 22.19. SHEL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.15 | ||
| Fwd PE | 8.85 |
4.2 Price Multiples
73.24% of the companies in the same industry are more expensive than SHEL, based on the Enterprise Value to EBITDA ratio.
84.51% of the companies in the same industry are more expensive than SHEL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.84 | ||
| EV/EBITDA | 4.92 |
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
SHEL has a Yearly Dividend Yield of 3.88%.
Compared to an average industry Dividend Yield of 6.47, SHEL has a dividend in line with its industry peers.
SHEL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
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 63.90% of its income as dividend. This is not a sustainable payout ratio.
DP63.9%
EPS Next 2Y3.05%
EPS Next 3Y4.54%
72.4
+0.4 (+0.56%)
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 Cap213.92B
Analysts80
Price Target87.1 (20.3%)
Short Float %0.34%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.88% |
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)-4.9%
PT rev (3m)-2.47%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)-5.17%
EPS NY rev (1m)0.27%
EPS NY rev (3m)-5.98%
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 | 10.15 | ||
| Fwd PE | 8.85 | ||
| P/S | 0.76 | ||
| P/FCF | 6.84 | ||
| P/OCF | 4.22 | ||
| P/B | 1.2 | ||
| P/tB | 1.41 | ||
| EV/EBITDA | 4.92 |
EPS(TTM)7.13
EY9.85%
EPS(NY)8.18
Fwd EY11.3%
FCF(TTM)10.58
FCFY14.62%
OCF(TTM)17.14
OCFY23.67%
SpS95.13
BVpS60.52
TBVpS51.23
PEG (NY)N/A
PEG (5Y)0.78
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 | 2.41 |
F-Score6
WACC8.31%
ROIC/WACC1.06
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%