SHELL PLC-ADR (SHEL) Stock Fundamental Analysis
USA - NYSE:SHEL - US7802593050 - ADR
73.4 USD
+0.51 (+0.7%)
73.4 USD
0 (0%)
Taking everything into account, SHEL scores 5 out of 10 in our fundamental rating. SHEL was compared to 211 industry peers in the Oil, Gas & Consumable Fuels industry. SHEL has an average financial health and profitability rating. SHEL is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
SHEL had positive earnings in the past year.
SHEL had a positive operating cash flow in the past year.
SHEL had positive earnings in 4 of the past 5 years.
In the past 5 years SHEL always reported a positive cash flow from operatings.
1.2 Ratios
SHEL's Return On Assets of 3.51% is in line compared to the rest of the industry. SHEL outperforms 50.95% of its industry peers.
With a Return On Equity value of 7.51%, SHEL perfoms like the industry average, outperforming 51.90% of the companies in the same industry.
SHEL has a better Return On Invested Capital (7.97%) than 70.95% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SHEL is significantly below the industry average of 21.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.51% | ||
| ROE | 7.51% | ||
| ROIC | 7.97% |
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
Looking at the Profit Margin, with a value of 5.00%, SHEL is in line with its industry, outperforming 44.29% of the companies in the same industry.
SHEL's Profit Margin has improved in the last couple of years.
SHEL's Operating Margin of 10.98% is on the low side compared to the rest of the industry. SHEL is outperformed by 60.00% of its industry peers.
In the last couple of years the Operating Margin of SHEL has grown nicely.
SHEL has a Gross Margin of 24.92%. This is in the lower half of the industry: SHEL underperforms 63.81% of its industry peers.
SHEL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.98% | ||
| PM (TTM) | 5% | ||
| GM | 24.92% |
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.
SHEL has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SHEL has been reduced compared to 5 years ago.
Compared to 1 year ago, SHEL has an improved debt to assets ratio.
2.2 Solvency
SHEL has an Altman-Z score of 2.36. 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.
The Altman-Z score of SHEL (2.36) is better than 73.81% of its industry peers.
The Debt to FCF ratio of SHEL is 2.63, which is a good value as it means it would take SHEL, 2.63 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.63, SHEL is in the better half of the industry, outperforming 79.05% of the companies in the same industry.
SHEL has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.36, SHEL is in line with its industry, outperforming 58.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.63 | ||
| Altman-Z | 2.36 |
ROIC/WACC0.96
WACC8.28%
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 better Current ratio (1.32) than 62.38% of its industry peers.
SHEL has a Quick Ratio of 1.07. 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 Quick ratio value of 1.07, SHEL perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
The earnings per share for SHEL have decreased strongly by -23.98% in the last year.
Measured over the past years, SHEL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.99% on average per year.
The Revenue has decreased by -9.94% in the past year.
The Revenue has been decreasing by -3.79% on average over the past years.
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.
SHEL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.13% yearly.
EPS Next Y-12.77%
EPS Next 2Y-2.08%
EPS Next 3Y1.74%
EPS Next 5Y3.4%
Revenue Next Year-7.71%
Revenue Next 2Y-3.67%
Revenue Next 3Y0.13%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 11.16, the valuation of SHEL can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of SHEL indicates a somewhat cheap valuation: SHEL is cheaper than 73.81% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SHEL to the average of the S&P500 Index (27.32), we can say SHEL is valued rather cheaply.
A Price/Forward Earnings ratio of 9.92 indicates a reasonable valuation of SHEL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SHEL indicates a somewhat cheap valuation: SHEL is cheaper than 71.90% of the companies listed in the same industry.
SHEL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 9.92 |
4.2 Price Multiples
76.19% of the companies in the same industry are more expensive than SHEL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SHEL is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.42 | ||
| EV/EBITDA | 5.19 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.86
EPS Next 2Y-2.08%
EPS Next 3Y1.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.94%, SHEL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.01, SHEL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, SHEL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
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 63.10% of its income as dividend. This is not a sustainable payout ratio.
DP63.1%
EPS Next 2Y-2.08%
EPS Next 3Y1.74%
73.4
+0.51 (+0.7%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners36.94%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap213.46B
Analysts76.92
Price Target88.81 (20.99%)
Short Float %0.33%
Short Ratio2.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
Yearly Dividend1.37
Dividend Growth(5Y)-6.24%
DP63.1%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.39%
Min EPS beat(2)-16.35%
Max EPS beat(2)-4.43%
EPS beat(4)1
Avg EPS beat(4)-7.58%
Min EPS beat(4)-29.22%
Max EPS beat(4)19.68%
EPS beat(8)4
Avg EPS beat(8)-0.99%
EPS beat(12)7
Avg EPS beat(12)0.71%
EPS beat(16)9
Avg EPS beat(16)0.55%
Revenue beat(2)0
Avg Revenue beat(2)-8.02%
Min Revenue beat(2)-13.37%
Max Revenue beat(2)-2.67%
Revenue beat(4)0
Avg Revenue beat(4)-7.23%
Min Revenue beat(4)-13.37%
Max Revenue beat(4)-2.67%
Revenue beat(8)0
Avg Revenue beat(8)-9.51%
Revenue beat(12)3
Avg Revenue beat(12)-7.79%
Revenue beat(16)3
Avg Revenue beat(16)-10.62%
PT rev (1m)2.56%
PT rev (3m)1.97%
EPS NQ rev (1m)1.01%
EPS NQ rev (3m)-16.7%
EPS NY rev (1m)0.22%
EPS NY rev (3m)-10.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.1%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-2.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 9.92 | ||
| P/S | 0.78 | ||
| P/FCF | 7.42 | ||
| P/OCF | 4.35 | ||
| P/B | 1.18 | ||
| P/tB | 1.39 | ||
| EV/EBITDA | 5.19 |
EPS(TTM)6.58
EY8.96%
EPS(NY)7.4
Fwd EY10.09%
FCF(TTM)9.89
FCFY13.47%
OCF(TTM)16.87
OCFY22.99%
SpS93.53
BVpS62.29
TBVpS52.77
PEG (NY)N/A
PEG (5Y)0.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.51% | ||
| ROE | 7.51% | ||
| ROCE | 10.09% | ||
| ROIC | 7.97% | ||
| ROICexc | 7.97% | ||
| ROICexgc | 8.79% | ||
| OM | 10.98% | ||
| PM (TTM) | 5% | ||
| GM | 24.92% | ||
| FCFM | 10.57% |
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-Score4
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.63 | ||
| Debt/EBITDA | 1.18 | ||
| Cap/Depr | 79.53% | ||
| Cap/Sales | 7.47% | ||
| Interest Coverage | 6.76 | ||
| Cash Conversion | 88.57% | ||
| Profit Quality | 211.39% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 2.36 |
F-Score4
WACC8.28%
ROIC/WACC0.96
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-7.71%
Revenue Next 2Y-3.67%
Revenue Next 3Y0.13%
Revenue Next 5YN/A
EBIT growth 1Y-20.94%
EBIT growth 3Y8.68%
EBIT growth 5Y5.15%
EBIT Next Year42.26%
EBIT Next 3Y12.68%
EBIT Next 5Y8.3%
FCF growth 1Y-31.18%
FCF growth 3Y10.36%
FCF growth 5Y12.81%
OCF growth 1Y-23.61%
OCF growth 3Y6.63%
OCF growth 5Y5.33%