SHELL PLC-ADR (SHEL) Stock Fundamental Analysis
NYSE:SHEL - New York Stock Exchange, Inc. - US7802593050 - ADR - Currency: USD
Overall SHEL gets a fundamental rating of 5 out of 10. We evaluated SHEL against 213 industry peers in the Oil, Gas & Consumable Fuels industry. While SHEL has a great health rating, its profitability is only average at the moment. 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.
In the past 5 years SHEL always reported a positive cash flow from operatings.
1.2 Ratios
SHEL's Return On Assets of 4.15% is in line compared to the rest of the industry. SHEL outperforms 51.64% of its industry peers.
SHEL has a Return On Equity (9.03%) which is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 8.98%, SHEL is in the better half of the industry, outperforming 70.42% 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 25.70%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 9.03% | ||
| ROIC | 8.98% |
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 has a Profit Margin (5.66%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of SHEL has grown nicely.
SHEL has a Operating Margin of 11.72%. This is in the lower half of the industry: SHEL underperforms 60.09% of its industry peers.
In the last couple of years the Operating Margin of SHEL has grown nicely.
SHEL's Gross Margin of 25.61% is on the low side compared to the rest of the industry. SHEL is outperformed by 63.85% of its industry peers.
In the last couple of years the Gross Margin of SHEL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.72% | ||
| PM (TTM) | 5.66% | ||
| GM | 25.61% |
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.
Compared to 1 year ago, SHEL has an improved debt to assets ratio.
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 better Altman-Z score (2.39) than 77.00% of its industry peers.
The Debt to FCF ratio of SHEL is 2.20, which is a good value as it means it would take SHEL, 2.20 years of fcf income to pay off all of its debts.
SHEL has a better Debt to FCF ratio (2.20) than 81.69% of its industry peers.
SHEL has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
SHEL has a Debt to Equity ratio of 0.37. This is comparable to the rest of the industry: SHEL outperforms 56.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.2 | ||
| Altman-Z | 2.39 |
ROIC/WACC1.08
WACC8.28%
2.3 Liquidity
SHEL has a Current Ratio of 1.35. This is a normal value and indicates that SHEL is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of SHEL (1.35) is better than 61.97% 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 59.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
SHEL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.72%, which is quite good.
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 -6.97% 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)10.72%
EPS 3Y14.67%
EPS 5Y12.99%
EPS Q2Q%53.33%
Revenue 1Y (TTM)-6.97%
Revenue growth 3Y2.83%
Revenue growth 5Y-3.79%
Sales Q2Q%-3.21%
3.2 Future
SHEL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.75% yearly.
SHEL is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.41% yearly.
EPS Next Y-2.58%
EPS Next 2Y3.05%
EPS Next 3Y4.54%
EPS Next 5Y8.75%
Revenue Next Year-7.82%
Revenue Next 2Y-4.24%
Revenue Next 3Y-1.41%
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 7.38, the valuation of SHEL can be described as very cheap.
SHEL's Price/Earnings ratio is a bit cheaper when compared to the industry. SHEL is cheaper than 79.34% of the companies in the same industry.
SHEL is valuated cheaply when we compare the Price/Earnings ratio to 24.21, which is the current average of the S&P500 Index.
SHEL is valuated reasonably with a Price/Forward Earnings ratio of 8.14.
Based on the Price/Forward Earnings ratio, SHEL is valued a bit cheaper than 71.36% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SHEL to the average of the S&P500 Index (20.44), we can say SHEL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.38 | ||
| Fwd PE | 8.14 |
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 78.87% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, SHEL is valued cheaper than 87.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.61 | ||
| EV/EBITDA | 3.68 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.57
EPS Next 2Y3.05%
EPS Next 3Y4.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.33%, SHEL is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.30, SHEL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, SHEL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.33% |
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 53.86% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP53.86%
EPS Next 2Y3.05%
EPS Next 3Y4.54%
66.15
+1.07 (+1.64%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners36.89%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap196.77B
Analysts80.74
Price Target91.59 (38.46%)
Short Float %0.25%
Short Ratio1.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.33% |
Yearly Dividend1.37
Dividend Growth(5Y)-6.24%
DP53.86%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.77%
Min EPS beat(2)-29.22%
Max EPS beat(2)19.68%
EPS beat(4)3
Avg EPS beat(4)1.32%
Min EPS beat(4)-29.22%
Max EPS beat(4)19.68%
EPS beat(8)5
Avg EPS beat(8)0.75%
EPS beat(12)8
Avg EPS beat(12)2.92%
EPS beat(16)10
Avg EPS beat(16)1.83%
Revenue beat(2)0
Avg Revenue beat(2)-6.43%
Min Revenue beat(2)-8.85%
Max Revenue beat(2)-4.01%
Revenue beat(4)0
Avg Revenue beat(4)-9.55%
Min Revenue beat(4)-20.18%
Max Revenue beat(4)-4.01%
Revenue beat(8)1
Avg Revenue beat(8)-11.49%
Revenue beat(12)3
Avg Revenue beat(12)-7.52%
Revenue beat(16)3
Avg Revenue beat(16)-13.71%
PT rev (1m)-0.15%
PT rev (3m)5.45%
EPS NQ rev (1m)-9.16%
EPS NQ rev (3m)-11.53%
EPS NY rev (1m)3.73%
EPS NY rev (3m)-1.59%
Revenue NQ rev (1m)-13.59%
Revenue NQ rev (3m)-7.22%
Revenue NY rev (1m)-5.05%
Revenue NY rev (3m)-5.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.38 | ||
| Fwd PE | 8.14 | ||
| P/S | 0.69 | ||
| P/FCF | 5.61 | ||
| P/OCF | 3.6 | ||
| P/B | 1.1 | ||
| P/tB | 1.29 | ||
| EV/EBITDA | 3.68 |
EPS(TTM)8.96
EY13.54%
EPS(NY)8.13
Fwd EY12.28%
FCF(TTM)11.8
FCFY17.83%
OCF(TTM)18.38
OCFY27.79%
SpS95.58
BVpS59.94
TBVpS51.37
PEG (NY)N/A
PEG (5Y)0.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 9.03% | ||
| ROCE | 11.39% | ||
| ROIC | 8.98% | ||
| ROICexc | 10.31% | ||
| ROICexgc | 11.46% | ||
| OM | 11.72% | ||
| PM (TTM) | 5.66% | ||
| GM | 25.61% | ||
| FCFM | 12.34% |
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 Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 2.2 | ||
| Debt/EBITDA | 1.1 | ||
| Cap/Depr | 72.94% | ||
| Cap/Sales | 6.89% | ||
| Interest Coverage | 7.31 | ||
| Cash Conversion | 90.83% | ||
| Profit Quality | 218.01% | ||
| Current Ratio | 1.35 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 2.39 |
F-Score6
WACC8.28%
ROIC/WACC1.08
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)10.72%
EPS 3Y14.67%
EPS 5Y12.99%
EPS Q2Q%53.33%
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%-3.21%
Revenue Next Year-7.82%
Revenue Next 2Y-4.24%
Revenue Next 3Y-1.41%
Revenue Next 5YN/A
EBIT growth 1Y-14.35%
EBIT growth 3Y8.68%
EBIT growth 5Y5.15%
EBIT Next Year48.76%
EBIT Next 3Y15.34%
EBIT Next 5Y10.84%
FCF growth 1Y12.46%
FCF growth 3Y10.36%
FCF growth 5Y12.81%
OCF growth 1Y0.92%
OCF growth 3Y6.63%
OCF growth 5Y5.33%