SHELL PLC-ADR (SHEL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SHEL - US7802593050 - ADR
71.55 USD
+1.09 (+1.55%)
71.79 USD
+0.24 (+0.34%)
We assign a fundamental rating of 5 out of 10 to SHEL. SHEL was compared to 208 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 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.
Of the past 5 years SHEL 4 years were profitable.
In the past 5 years SHEL always reported a positive cash flow from operatings.
1.2 Ratios
SHEL has a Return On Assets (3.87%) which is in line with its industry peers.
Looking at the Return On Equity, with a value of 8.32%, SHEL is in line with its industry, outperforming 54.33% of the companies in the same industry.
SHEL's Return On Invested Capital of 8.27% is fine compared to the rest of the industry. SHEL outperforms 75.48% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SHEL is significantly below the industry average of 21.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.87% | ||
| ROE | 8.32% | ||
| ROIC | 8.27% |
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 (5.44%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of SHEL has grown nicely.
SHEL's Operating Margin of 11.22% is in line compared to the rest of the industry. SHEL outperforms 41.83% of its industry peers.
SHEL's Operating Margin has improved in the last couple of years.
SHEL's Gross Margin of 25.44% is on the low side compared to the rest of the industry. SHEL is outperformed by 64.90% of its industry peers.
In the last couple of years the Gross Margin of SHEL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.22% | ||
| PM (TTM) | 5.44% | ||
| GM | 25.44% |
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
SHEL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
SHEL has less shares outstanding than it did 1 year ago.
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
An Altman-Z score of 2.39 indicates that SHEL is not a great score, but indicates only limited risk for bankruptcy at the moment.
SHEL has a Altman-Z score of 2.39. This is in the better half of the industry: SHEL outperforms 74.52% of its industry peers.
SHEL has a debt to FCF ratio of 2.80. This is a good value and a sign of high solvency as SHEL would need 2.80 years to pay back of all of its debts.
SHEL has a better Debt to FCF ratio (2.80) than 76.92% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that SHEL is not too dependend on debt financing.
SHEL has a Debt to Equity ratio (0.36) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.8 | ||
| Altman-Z | 2.39 |
ROIC/WACC1.01
WACC8.2%
2.3 Liquidity
A Current Ratio of 1.35 indicates that SHEL should not have too much problems paying its short term obligations.
The Current ratio of SHEL (1.35) is better than 61.06% of its industry peers.
SHEL has a Quick Ratio of 1.10. 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 1.10, SHEL perfoms like the industry average, outperforming 56.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The earnings per share for SHEL have decreased strongly by -25.23% 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 -9.33% 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)-25.23%
EPS 3Y14.67%
EPS 5Y12.99%
EPS Q2Q%-3.12%
Revenue 1Y (TTM)-9.33%
Revenue growth 3Y2.83%
Revenue growth 5Y-3.79%
Sales Q2Q%-4.13%
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 6.38% on average per year.
Based on estimates for the next years, SHEL will show a decrease in Revenue. The Revenue will decrease by -4.04% on average per year.
EPS Next Y-11.07%
EPS Next 2Y-4.55%
EPS Next 3Y1.34%
EPS Next 5Y6.38%
Revenue Next Year-8.13%
Revenue Next 2Y-4.8%
Revenue Next 3Y-0.4%
Revenue Next 5Y-4.04%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.99, which indicates a very decent valuation of SHEL.
Based on the Price/Earnings ratio, SHEL is valued a bit cheaper than the industry average as 73.56% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SHEL to the average of the S&P500 Index (26.43), we can say SHEL is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.19, the valuation of SHEL can be described as reasonable.
SHEL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SHEL is cheaper than 73.56% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.66. SHEL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.99 | ||
| Fwd PE | 10.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SHEL is valued a bit cheaper than the industry average as 79.81% of the companies are valued more expensively.
84.62% 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 | 7.76 | ||
| EV/EBITDA | 4.3 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.85
EPS Next 2Y-4.55%
EPS Next 3Y1.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.98%, SHEL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.83, SHEL pays a bit more dividend than its industry peers.
SHEL's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
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 58.21% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP58.21%
EPS Next 2Y-4.55%
EPS Next 3Y1.34%
71.55
+1.09 (+1.55%)
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 Cap204.99B
Revenue(TTM)269.07B
Net Income(TTM)14.63B
Analysts74.62
Price Target88.9 (24.25%)
Short Float %0.33%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
Yearly Dividend1.37
Dividend Growth(5Y)-6.24%
DP58.21%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.37%
Min EPS beat(2)-16.35%
Max EPS beat(2)7.6%
EPS beat(4)1
Avg EPS beat(4)-10.6%
Min EPS beat(4)-29.22%
Max EPS beat(4)7.6%
EPS beat(8)5
Avg EPS beat(8)0.17%
EPS beat(12)7
Avg EPS beat(12)1.09%
EPS beat(16)10
Avg EPS beat(16)2.67%
Revenue beat(2)0
Avg Revenue beat(2)-5.42%
Min Revenue beat(2)-8.18%
Max Revenue beat(2)-2.67%
Revenue beat(4)0
Avg Revenue beat(4)-8.27%
Min Revenue beat(4)-13.37%
Max Revenue beat(4)-2.67%
Revenue beat(8)0
Avg Revenue beat(8)-8.8%
Revenue beat(12)2
Avg Revenue beat(12)-8.9%
Revenue beat(16)3
Avg Revenue beat(16)-8.78%
PT rev (1m)2.26%
PT rev (3m)0.09%
EPS NQ rev (1m)30.86%
EPS NQ rev (3m)-5.52%
EPS NY rev (1m)7.37%
EPS NY rev (3m)1.79%
Revenue NQ rev (1m)9.52%
Revenue NQ rev (3m)8.76%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.99 | ||
| Fwd PE | 10.19 | ||
| P/S | 0.76 | ||
| P/FCF | 7.76 | ||
| P/OCF | 4.4 | ||
| P/B | 1.17 | ||
| P/tB | 1.36 | ||
| EV/EBITDA | 4.3 |
EPS(TTM)6.51
EY9.1%
EPS(NY)7.02
Fwd EY9.82%
FCF(TTM)9.22
FCFY12.88%
OCF(TTM)16.26
OCFY22.73%
SpS93.92
BVpS61.37
TBVpS52.44
PEG (NY)N/A
PEG (5Y)0.85
Graham Number94.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.87% | ||
| ROE | 8.32% | ||
| ROCE | 10.47% | ||
| ROIC | 8.27% | ||
| ROICexc | 9.35% | ||
| ROICexgc | 10.39% | ||
| OM | 11.22% | ||
| PM (TTM) | 5.44% | ||
| GM | 25.44% | ||
| FCFM | 9.81% |
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%
ROICexgc growth 3Y11.44%
ROICexgc 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-Score5
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.8 | ||
| Debt/EBITDA | 1.13 | ||
| Cap/Depr | 76.93% | ||
| Cap/Sales | 7.5% | ||
| Interest Coverage | 7.04 | ||
| Cash Conversion | 82.58% | ||
| Profit Quality | 180.47% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 2.39 |
F-Score5
WACC8.2%
ROIC/WACC1.01
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)-25.23%
EPS 3Y14.67%
EPS 5Y12.99%
EPS Q2Q%-3.12%
EPS Next Y-11.07%
EPS Next 2Y-4.55%
EPS Next 3Y1.34%
EPS Next 5Y6.38%
Revenue 1Y (TTM)-9.33%
Revenue growth 3Y2.83%
Revenue growth 5Y-3.79%
Sales Q2Q%-4.13%
Revenue Next Year-8.13%
Revenue Next 2Y-4.8%
Revenue Next 3Y-0.4%
Revenue Next 5Y-4.04%
EBIT growth 1Y-11.8%
EBIT growth 3Y8.68%
EBIT growth 5Y5.15%
EBIT Next Year44.3%
EBIT Next 3Y12.81%
EBIT Next 5Y9.48%
FCF growth 1Y-36.49%
FCF growth 3Y10.36%
FCF growth 5Y12.81%
OCF growth 1Y-27.23%
OCF growth 3Y6.63%
OCF growth 5Y5.33%
SHELL PLC-ADR / SHEL FAQ
What is the fundamental rating for SHEL stock?
ChartMill assigns a fundamental rating of 5 / 10 to SHEL.
Can you provide the valuation status for SHELL PLC-ADR?
ChartMill assigns a valuation rating of 6 / 10 to SHELL PLC-ADR (SHEL). This can be considered as Fairly Valued.
Can you provide the profitability details for SHELL PLC-ADR?
SHELL PLC-ADR (SHEL) has a profitability rating of 5 / 10.
Can you provide the financial health for SHEL stock?
The financial health rating of SHELL PLC-ADR (SHEL) is 6 / 10.
What is the earnings growth outlook for SHELL PLC-ADR?
The Earnings per Share (EPS) of SHELL PLC-ADR (SHEL) is expected to decline by -11.07% in the next year.