SHELL PLC-ADR (SHEL) Stock Fundamental Analysis
USA - NYSE:SHEL - US7802593050 - ADR
72.82 USD
+0.23 (+0.32%)
72.98 USD
+0.16 (+0.22%)
SHEL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 211 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of SHEL get a neutral evaluation. Nothing too spectacular is happening here. SHEL has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
SHEL had positive earnings in the past year.
In the past year SHEL had a positive cash flow from operations.
Of the past 5 years SHEL 4 years were profitable.
SHEL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SHEL has a Return On Assets (3.51%) which is comparable to the rest of the industry.
SHEL's Return On Equity of 7.51% is in line compared to the rest of the industry. SHEL outperforms 51.66% of its industry peers.
SHEL has a Return On Invested Capital of 7.97%. This is in the better half of the industry: SHEL outperforms 71.56% 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 21.53%.
| 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
SHEL's Profit Margin of 5.00% is in line compared to the rest of the industry. SHEL outperforms 44.08% of its industry peers.
In the last couple of years the Profit Margin of SHEL has grown nicely.
SHEL has a Operating Margin (10.98%) which is in line with its industry peers.
In the last couple of years the Operating Margin of SHEL has grown nicely.
SHEL's Gross Margin of 24.92% is on the low side compared to the rest of the industry. SHEL is outperformed by 63.51% of its industry peers.
In the last couple of years the Gross Margin of SHEL has grown nicely.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SHEL is still creating some value.
Compared to 1 year ago, SHEL has less shares outstanding
SHEL has less shares outstanding than it did 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 2.36. 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.
SHEL has a better Altman-Z score (2.36) than 73.46% of its industry peers.
SHEL has a debt to FCF ratio of 2.63. This is a good value and a sign of high solvency as SHEL would need 2.63 years to pay back of all of its debts.
SHEL has a Debt to FCF ratio of 2.63. This is in the better half of the industry: SHEL outperforms 78.67% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that SHEL is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.36, SHEL is in line with its industry, outperforming 57.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.63 | ||
| Altman-Z | 2.36 |
ROIC/WACC0.97
WACC8.24%
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.
SHEL has a Current ratio of 1.32. This is in the better half of the industry: SHEL outperforms 61.14% 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.
SHEL has a Quick ratio (1.07) which is comparable to the rest of the 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.
The Earnings Per Share has been growing by 12.99% on average over the past years. This is quite good.
The Revenue has decreased by -9.94% in the past year.
SHEL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.79% yearly.
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
SHEL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.68% yearly.
Based on estimates for the next years, SHEL will show a small growth in Revenue. The Revenue will grow by 0.73% on average per year.
EPS Next Y-14.91%
EPS Next 2Y-3.89%
EPS Next 3Y1.99%
EPS Next 5Y3.68%
Revenue Next Year-7.61%
Revenue Next 2Y-3.64%
Revenue Next 3Y0.26%
Revenue Next 5Y0.73%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.97, which indicates a very decent valuation of SHEL.
Compared to the rest of the industry, the Price/Earnings ratio of SHEL indicates a somewhat cheap valuation: SHEL is cheaper than 71.09% of the companies listed in the same industry.
SHEL is valuated cheaply when we compare the Price/Earnings ratio to 27.69, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.13 indicates a reasonable valuation of SHEL.
Based on the Price/Forward Earnings ratio, SHEL is valued a bit cheaper than 70.14% of the companies in the same industry.
SHEL is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.18, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 10.13 |
4.2 Price Multiples
73.93% 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 84.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.31 | ||
| EV/EBITDA | 5.16 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.84
EPS Next 2Y-3.89%
EPS Next 3Y1.99%
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 6.30, 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
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 63.10% of its income as dividend. This is not a sustainable payout ratio.
DP63.1%
EPS Next 2Y-3.89%
EPS Next 3Y1.99%
72.82
+0.23 (+0.32%)
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 Cap210.04B
Analysts76.92
Price Target87.45 (20.09%)
Short Float %0.33%
Short Ratio2.46
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)-1.53%
PT rev (3m)0.91%
EPS NQ rev (1m)-5.23%
EPS NQ rev (3m)-16.73%
EPS NY rev (1m)-1.65%
EPS NY rev (3m)-12.16%
Revenue NQ rev (1m)2.18%
Revenue NQ rev (3m)5.6%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)-2.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.97 | ||
| Fwd PE | 10.13 | ||
| P/S | 0.77 | ||
| P/FCF | 7.31 | ||
| P/OCF | 4.28 | ||
| P/B | 1.16 | ||
| P/tB | 1.37 | ||
| EV/EBITDA | 5.16 |
EPS(TTM)6.64
EY9.12%
EPS(NY)7.19
Fwd EY9.87%
FCF(TTM)9.97
FCFY13.69%
OCF(TTM)17.01
OCFY23.36%
SpS94.3
BVpS62.8
TBVpS53.21
PEG (NY)N/A
PEG (5Y)0.84
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
WACC8.24%
ROIC/WACC0.97
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-14.91%
EPS Next 2Y-3.89%
EPS Next 3Y1.99%
EPS Next 5Y3.68%
Revenue 1Y (TTM)-9.94%
Revenue growth 3Y2.83%
Revenue growth 5Y-3.79%
Sales Q2Q%-12.16%
Revenue Next Year-7.61%
Revenue Next 2Y-3.64%
Revenue Next 3Y0.26%
Revenue Next 5Y0.73%
EBIT growth 1Y-20.94%
EBIT growth 3Y8.68%
EBIT growth 5Y5.15%
EBIT Next Year42.27%
EBIT Next 3Y13.13%
EBIT Next 5Y8.37%
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%