SHELL PLC (SHELL.AS)
GB00BP6MXD84 - Common Stock
Overall SHELL gets a fundamental rating of 4 out of 10. We evaluated SHELL against 61 industry peers in the Oil, Gas & Consumable Fuels industry. While SHELL seems to be doing ok healthwise, there are quite some concerns on its profitability. SHELL 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 SHELL was profitable.
SHELL had a positive operating cash flow in the past year.
SHELL had positive earnings in 4 of the past 5 years.
Each year in the past 5 years SHELL had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.77%, SHELL is doing worse than 64.41% of the companies in the same industry.
SHELL has a worse Return On Equity (10.37%) than 74.58% of its industry peers.
SHELL has a Return On Invested Capital (7.91%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for SHELL is significantly below the industry average of 14.13%.
| 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
SHELL has a worse Profit Margin (6.11%) than 67.80% of its industry peers.
SHELL's Profit Margin has been stable in the last couple of years.
SHELL has a Operating Margin of 12.29%. This is in the lower half of the industry: SHELL underperforms 64.41% of its industry peers.
In the last couple of years the Operating Margin of SHELL has grown nicely.
Looking at the Gross Margin, with a value of 24.79%, SHELL is doing worse than 74.58% of the companies in the same industry.
In the last couple of years the Gross Margin of SHELL has grown nicely.
| 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
SHELL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
SHELL has less shares outstanding than it did 1 year ago.
The number of shares outstanding for SHELL has been reduced compared to 5 years ago.
The debt/assets ratio for SHELL is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.23 indicates that SHELL is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.23, SHELL perfoms like the industry average, outperforming 57.63% of the companies in the same industry.
SHELL has a debt to FCF ratio of 2.61. This is a good value and a sign of high solvency as SHELL would need 2.61 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.61, SHELL is doing good in the industry, outperforming 62.71% of the companies in the same industry.
A Debt/Equity ratio of 0.38 indicates that SHELL is not too dependend on debt financing.
The Debt to Equity ratio of SHELL (0.38) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 2.61 | ||
| Altman-Z | 2.23 |
ROIC/WACC1.22
WACC6.47%
2.3 Liquidity
SHELL has a Current Ratio of 1.40. This is a normal value and indicates that SHELL is financially healthy and should not expect problems in meeting its short term obligations.
SHELL has a Current ratio (1.40) which is comparable to the rest of the industry.
A Quick Ratio of 1.13 indicates that SHELL should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.13, SHELL perfoms like the industry average, outperforming 50.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
SHELL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.24%.
SHELL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.95% yearly.
SHELL shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.97%.
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
The Earnings Per Share is expected to grow by 9.26% on average over the next years. This is quite good.
The Revenue is expected to decrease by -4.83% on average over the next years.
EPS Next Y-1.03%
EPS Next 2Y1.61%
EPS Next 3Y1.23%
EPS Next 5Y9.26%
Revenue Next Year3.13%
Revenue Next 2Y-0.16%
Revenue Next 3Y1.3%
Revenue Next 5Y-4.83%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.65 indicates a reasonable valuation of SHELL.
Compared to the rest of the industry, the Price/Earnings ratio of SHELL is on the same level as its industry peers.
SHELL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.28.
SHELL is valuated reasonably with a Price/Forward Earnings ratio of 8.73.
SHELL's Price/Forward Earnings ratio is in line with the industry average.
SHELL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.65 | ||
| Fwd PE | 8.73 |
4.2 Price Multiples
71.19% of the companies in the same industry are more expensive than SHELL, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SHELL indicates a rather cheap valuation: SHELL is cheaper than 86.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.68 | ||
| EV/EBITDA | 2.26 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.87
EPS Next 2Y1.61%
EPS Next 3Y1.23%
5. Dividend
5.1 Amount
SHELL has a Yearly Dividend Yield of 3.53%.
SHELL's Dividend Yield is comparable with the industry average which is at 55.92.
SHELL's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
5.2 History
The dividend of SHELL decreases each year by -8.18%.
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 SHELL. This is a bit on the high side, but may be sustainable.
DP43.35%
EPS Next 2Y1.61%
EPS Next 3Y1.23%
SHELL PLC
AMS:SHELL (5/3/2024, 7:00:00 PM)
33.475
-0.27 (-0.81%)
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 Cap107.38B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
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)
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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 | 8.65 | ||
| Fwd PE | 8.73 | ||
| 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)0.87
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