SHELL PLC-ADR (SHEL)
US7802593050 - ADR
Taking everything into account, SHEL scores 4 out of 10 in our fundamental rating. SHEL was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. The financial health of SHEL is average, but there are quite some concerns on its profitability. 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.
SHEL had a positive operating cash flow in the past year.
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 of 4.77%. This is in the lower half of the industry: SHEL underperforms 61.79% of its industry peers.
The Return On Equity of SHEL (10.37%) is worse than 62.74% of its industry peers.
SHEL has a Return On Invested Capital (7.91%) which is comparable to the rest of the industry.
SHEL had an Average Return On Invested Capital over the past 3 years of 8.18%. This is significantly below the industry average of 46.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.77% | ||
| ROE | 10.37% | ||
| ROIC | 7.91% |
ROA(3y)6.43%
ROA(5y)3.5%
ROE(3y)14.76%
ROE(5y)7.76%
ROIC(3y)8.18%
ROIC(5y)5.96%
1.3 Margins
Looking at the Profit Margin, with a value of 6.11%, SHEL is doing worse than 67.92% of the companies in the same industry.
SHEL's Profit Margin has been stable in the last couple of years.
SHEL's Operating Margin of 12.29% is on the low side compared to the rest of the industry. SHEL is outperformed by 66.98% of its industry peers.
In the last couple of years the Operating Margin of SHEL has grown nicely.
SHEL has a worse Gross Margin (24.79%) than 66.51% of its industry peers.
SHEL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.29% | ||
| PM (TTM) | 6.11% | ||
| GM | 24.79% |
OM growth 3Y147.55%
OM growth 5Y8.81%
PM growth 3YN/A
PM growth 5Y0.34%
GM growth 3Y4.3%
GM growth 5Y7.52%
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 is higher compared to a year ago.
2.2 Solvency
SHEL has an Altman-Z score of 2.54. 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 (2.54) than 65.57% of its industry peers.
SHEL has a debt to FCF ratio of 2.61. This is a good value and a sign of high solvency as SHEL would need 2.61 years to pay back of all of its debts.
SHEL's Debt to FCF ratio of 2.61 is fine compared to the rest of the industry. SHEL outperforms 70.28% of its industry peers.
SHEL has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of SHEL (0.38) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 2.61 | ||
| Altman-Z | 2.54 |
ROIC/WACC1.09
WACC7.27%
2.3 Liquidity
SHEL has a Current Ratio of 1.40. 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 better Current ratio (1.40) than 61.79% of its industry peers.
SHEL has a Quick Ratio of 1.13. 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 (1.13) is better than 60.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
SHEL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.24%.
Measured over the past years, SHEL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.95% on average per year.
Looking at the last year, SHEL shows a very negative growth in Revenue. The Revenue has decreased by -16.97% in the last year.
The Revenue has been decreasing by -4.00% on average over the past years.
EPS 1Y (TTM)-23.24%
EPS 3Y88.38%
EPS 5Y9.95%
EPS growth Q2Q-22.1%
Revenue 1Y (TTM)-16.97%
Revenue growth 3Y20.59%
Revenue growth 5Y-4%
Revenue growth Q2Q-22.28%
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 9.13% yearly.
Based on estimates for the next years, SHEL will show a decrease in Revenue. The Revenue will decrease by -4.83% on average per year.
EPS Next Y-1.03%
EPS Next 2Y1.61%
EPS Next 3Y1.23%
EPS Next 5Y9.13%
Revenue Next Year3.13%
Revenue Next 2Y-0.16%
Revenue Next 3Y1.3%
Revenue Next 5Y-4.83%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.32, the valuation of SHEL can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of SHEL indicates a somewhat cheap valuation: SHEL is cheaper than 67.45% of the companies listed in the same industry.
SHEL is valuated cheaply when we compare the Price/Earnings ratio to 24.80, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.40 indicates a reasonable valuation of SHEL.
Based on the Price/Forward Earnings ratio, SHEL is valued a bit cheaper than 75.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.27. SHEL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.32 | ||
| Fwd PE | 8.4 |
4.2 Price Multiples
77.83% of the companies in the same industry are more expensive than SHEL, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SHEL indicates a somewhat cheap valuation: SHEL is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.32 | ||
| EV/EBITDA | 3.87 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.84
EPS Next 2Y1.61%
EPS Next 3Y1.23%
5. Dividend
5.1 Amount
SHEL has a Yearly Dividend Yield of 3.58%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.80, SHEL has a dividend in line with its industry peers.
SHEL's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
5.2 History
The dividend of SHEL decreases each year by -8.18%.
SHEL has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of SHEL decreased in the last 3 years.
Dividend Growth(5Y)-8.18%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
43.35% of the earnings are spent on dividend by SHEL. This is a bit on the high side, but may be sustainable.
DP43.35%
EPS Next 2Y1.61%
EPS Next 3Y1.23%
SHELL PLC-ADR
NYSE:SHEL (4/18/2024, 7:19:59 PM)
After market: 70.7 -0.33 (-0.46%)71.03
-0.11 (-0.15%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap228.49B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.32 | ||
| Fwd PE | 8.4 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.77% | ||
| ROE | 10.37% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.29% | ||
| PM (TTM) | 6.11% | ||
| GM | 24.79% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.13 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-23.24%
EPS 3Y88.38%
EPS 5Y
EPS growth Q2Q
EPS Next Y-1.03%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-16.97%
Revenue growth 3Y20.59%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y