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. 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.
SHEL had positive earnings in 4 of the past 5 years.
SHEL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 3.47%, SHEL perfoms like the industry average, outperforming 50.70% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.56%, SHEL is in line with its industry, outperforming 48.83% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.78%, SHEL is doing good in the industry, outperforming 70.89% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SHEL is significantly below the industry average of 23.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.47% | ||
| ROE | 7.56% | ||
| ROIC | 8.78% |
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 (4.81%) which is comparable to the rest of the industry.
SHEL's Profit Margin has improved in the last couple of years.
SHEL has a Operating Margin (11.60%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of SHEL has grown nicely.
With a Gross Margin value of 25.21%, SHEL is not doing good in the industry: 62.91% of the companies in the same industry are doing better.
SHEL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.6% | ||
| PM (TTM) | 4.81% | ||
| GM | 25.21% |
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.
The number of shares outstanding for SHEL has been reduced compared to 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 2.36 indicates that SHEL is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.36, SHEL is in the better half of the industry, outperforming 73.71% of the companies in the same industry.
SHEL has a debt to FCF ratio of 2.45. This is a good value and a sign of high solvency as SHEL would need 2.45 years to pay back of all of its debts.
SHEL has a Debt to FCF ratio of 2.45. This is in the better half of the industry: SHEL outperforms 79.34% of its industry peers.
SHEL has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
SHEL's Debt to Equity ratio of 0.36 is in line compared to the rest of the industry. SHEL outperforms 56.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.45 | ||
| Altman-Z | 2.36 |
ROIC/WACC1.09
WACC8.09%
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 (1.32) which is in line with its industry peers.
A Quick Ratio of 1.08 indicates that SHEL should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.08, SHEL is in line with its industry, outperforming 57.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
SHEL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.54%.
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.
Looking at the last year, SHEL shows a decrease in Revenue. The Revenue has decreased by -6.97% in the last year.
The Revenue has been decreasing by -3.79% on average over the past years.
EPS 1Y (TTM)-12.54%
EPS 3Y14.67%
EPS 5Y12.99%
EPS Q2Q%-23.33%
Revenue 1Y (TTM)-6.97%
Revenue growth 3Y2.83%
Revenue growth 5Y-3.79%
Sales Q2Q%-4.48%
3.2 Future
The Earnings Per Share is expected to grow by 8.75% on average over the next years. This is quite good.
SHEL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.47% yearly.
EPS Next Y-2.58%
EPS Next 2Y3.05%
EPS Next 3Y4.54%
EPS Next 5Y8.75%
Revenue Next Year-5.34%
Revenue Next 2Y-2.47%
Revenue Next 3Y0.47%
Revenue Next 5YN/A
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
Based on the Price/Earnings ratio of 9.30, the valuation of SHEL can be described as reasonable.
74.18% of the companies in the same industry are more expensive than SHEL, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.25. SHEL is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.11 indicates a reasonable valuation of SHEL.
Based on the Price/Forward Earnings ratio, SHEL is valued a bit cheaper than 72.77% of the companies in the same industry.
SHEL is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.3 | ||
| Fwd PE | 8.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SHEL is valued a bit cheaper than the industry average as 71.83% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SHEL is valued cheaper than 83.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.27 | ||
| EV/EBITDA | 4.62 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.72
EPS Next 2Y3.05%
EPS Next 3Y4.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.26%, SHEL is a good candidate for dividend investing.
SHEL's Dividend Yield is comparable with the industry average which is at 6.82.
Compared to an average S&P500 Dividend Yield of 2.38, SHEL pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
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
63.90% of the earnings are spent on dividend by SHEL. This is not a sustainable payout ratio.
DP63.9%
EPS Next 2Y3.05%
EPS Next 3Y4.54%
66.22
-0.22 (-0.33%)
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 Cap195.97B
Analysts80.74
Price Target91.59 (38.31%)
Short Float %0.25%
Short Ratio1.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
Yearly Dividend1.37
Dividend Growth(5Y)-6.24%
DP63.9%
Div Incr Years3
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-16.83%
Min EPS beat(2)-29.22%
Max EPS beat(2)-4.43%
EPS beat(4)2
Avg EPS beat(4)-1.81%
Min EPS beat(4)-29.22%
Max EPS beat(4)19.68%
EPS beat(8)4
Avg EPS beat(8)-0.97%
EPS beat(12)8
Avg EPS beat(12)2.73%
EPS beat(16)10
Avg EPS beat(16)2.32%
Revenue beat(2)0
Avg Revenue beat(2)-11.11%
Min Revenue beat(2)-13.37%
Max Revenue beat(2)-8.85%
Revenue beat(4)0
Avg Revenue beat(4)-7.85%
Min Revenue beat(4)-13.37%
Max Revenue beat(4)-4.01%
Revenue beat(8)1
Avg Revenue beat(8)-8.11%
Revenue beat(12)3
Avg Revenue beat(12)-7.71%
Revenue beat(16)3
Avg Revenue beat(16)-13.19%
PT rev (1m)0%
PT rev (3m)5.45%
EPS NQ rev (1m)-10.24%
EPS NQ rev (3m)-4.91%
EPS NY rev (1m)-4.44%
EPS NY rev (3m)-5.57%
Revenue NQ rev (1m)-3.5%
Revenue NQ rev (3m)-12.69%
Revenue NY rev (1m)2.69%
Revenue NY rev (3m)-2.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.3 | ||
| Fwd PE | 8.11 | ||
| P/S | 0.7 | ||
| P/FCF | 6.27 | ||
| P/OCF | 3.87 | ||
| P/B | 1.1 | ||
| P/tB | 1.29 | ||
| EV/EBITDA | 4.62 |
EPS(TTM)7.12
EY10.75%
EPS(NY)8.17
Fwd EY12.33%
FCF(TTM)10.57
FCFY15.96%
OCF(TTM)17.11
OCFY25.84%
SpS94.98
BVpS60.42
TBVpS51.15
PEG (NY)N/A
PEG (5Y)0.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.47% | ||
| ROE | 7.56% | ||
| ROCE | 11.12% | ||
| ROIC | 8.78% | ||
| ROICexc | 8.78% | ||
| ROICexgc | 9.69% | ||
| OM | 11.6% | ||
| PM (TTM) | 4.81% | ||
| GM | 25.21% | ||
| FCFM | 11.12% |
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 Turnover0.72
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 2.45 | ||
| Debt/EBITDA | 1.1 | ||
| Cap/Depr | 73.28% | ||
| Cap/Sales | 6.89% | ||
| Interest Coverage | 7.26 | ||
| Cash Conversion | 85.79% | ||
| Profit Quality | 231.34% | ||
| Current Ratio | 1.32 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 2.36 |
F-Score6
WACC8.09%
ROIC/WACC1.09
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)-12.54%
EPS 3Y14.67%
EPS 5Y12.99%
EPS Q2Q%-23.33%
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%-4.48%
Revenue Next Year-5.34%
Revenue Next 2Y-2.47%
Revenue Next 3Y0.47%
Revenue Next 5YN/A
EBIT growth 1Y-7.09%
EBIT growth 3Y8.68%
EBIT growth 5Y5.15%
EBIT Next Year42.26%
EBIT Next 3Y12.68%
EBIT Next 5Y10.84%
FCF growth 1Y-27.68%
FCF growth 3Y10.36%
FCF growth 5Y12.81%
OCF growth 1Y-25.27%
OCF growth 3Y6.63%
OCF growth 5Y5.33%