SHELL MIDSTREAM PARTNERS LP (SHLX) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SHLX - US8226341019
15.82 USD
-0.01 (-0.06%)
15.84 USD
+0.02 (+0.13%)
Taking everything into account, SHLX scores 2 out of 10 in our fundamental rating. SHLX was compared to 207 industry peers in the Oil, Gas & Consumable Fuels industry. SHLX may be in some trouble as it scores bad on both profitability and health. SHLX has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year SHLX was profitable.
- In the past year SHLX had a positive cash flow from operations.
1.2 Ratios
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.07% | ||
| ROE | N/A | ||
| ROIC | 9.12% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- SHLX's Profit Margin has improved in the last couple of years.
- In the last couple of years the Operating Margin of SHLX has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 39.24% | ||
| PM (TTM) | 97.11% | ||
| GM | N/A |
OM growth 3Y4.02%
OM growth 5Y0.99%
PM growth 3Y6.21%
PM growth 5Y17.82%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so SHLX is still creating some value.
- The number of shares outstanding for SHLX remains at a similar level compared to 1 year ago.
- SHLX has a worse debt/assets ratio than last year.
2.2 Solvency
- The Debt to FCF ratio of SHLX is 4.36, which is a neutral value as it means it would take SHLX, 4.36 years of fcf income to pay off all of its debts.
- SHLX has a Debt/Equity ratio of -5.22. This is a healthy value indicating a solid balance between debt and equity.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | -5.22 | ||
| Debt/FCF | 4.36 | ||
| Altman-Z | N/A |
ROIC/WACC1.16
WACC7.88%
2.3 Liquidity
- A Current Ratio of 1.18 indicates that SHLX should not have too much problems paying its short term obligations.
- SHLX has a Quick Ratio of 1.18. This is a normal value and indicates that SHLX is financially healthy and should not expect problems in meeting its short term obligations.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
- The earnings per share for SHLX have decreased by -8.33% in the last year.
- SHLX shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.23% yearly.
- SHLX shows a small growth in Revenue. In the last year, the Revenue has grown by 4.93%.
- The Revenue has been growing slightly by 4.19% on average over the past years.
EPS 1Y (TTM)-8.33%
EPS 3Y-5.47%
EPS 5Y-1.23%
EPS Q2Q%-8.33%
Revenue 1Y (TTM)4.93%
Revenue growth 3Y1.95%
Revenue growth 5Y4.19%
Sales Q2Q%0.68%
3.2 Future
- The Earnings Per Share is expected to grow by 7.99% on average over the next years.
- SHLX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.42% yearly.
EPS Next Y18.12%
EPS Next 2Y12.1%
EPS Next 3Y9.97%
EPS Next 5Y7.99%
Revenue Next Year5.03%
Revenue Next 2Y1.51%
Revenue Next 3Y2.34%
Revenue Next 5Y1.42%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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
- Based on the Price/Earnings ratio of 13.07, the valuation of SHLX can be described as correct.
- SHLX's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.32.
- Based on the Price/Forward Earnings ratio of 10.07, the valuation of SHLX can be described as reasonable.
- When comparing the Price/Forward Earnings ratio of SHLX to the average of the S&P500 Index (24.32), we can say SHLX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.07 | ||
| Fwd PE | 10.07 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.58 | ||
| EV/EBITDA | 31.69 |
4.3 Compensation for Growth
- SHLX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.72
PEG (5Y)N/A
EPS Next 2Y12.1%
EPS Next 3Y9.97%
5. Dividend
5.1 Amount
- SHLX has a Yearly Dividend Yield of 7.59%, which is a nice return.
- SHLX's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.59% |
5.2 History
- The dividend of SHLX has a limited annual growth rate of 2.10%.
- SHLX has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)2.1%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- SHLX pays out 96.83% of its income as dividend. This is not a sustainable payout ratio.
- The dividend of SHLX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP96.83%
EPS Next 2Y12.1%
EPS Next 3Y9.97%
SHELL MIDSTREAM PARTNERS LP / SHLX FAQ
Can you provide the ChartMill fundamental rating for SHELL MIDSTREAM PARTNERS LP?
ChartMill assigns a fundamental rating of 4 / 10 to SHLX.
What is the valuation status of SHELL MIDSTREAM PARTNERS LP (SHLX) stock?
ChartMill assigns a valuation rating of 4 / 10 to SHELL MIDSTREAM PARTNERS LP (SHLX). This can be considered as Fairly Valued.
Can you provide the profitability details for SHELL MIDSTREAM PARTNERS LP?
SHELL MIDSTREAM PARTNERS LP (SHLX) has a profitability rating of 6 / 10.
What is the valuation of SHELL MIDSTREAM PARTNERS LP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for SHELL MIDSTREAM PARTNERS LP (SHLX) is 13.07 and the Price/Book (PB) ratio is -14.04.
Is the dividend of SHELL MIDSTREAM PARTNERS LP sustainable?
The dividend rating of SHELL MIDSTREAM PARTNERS LP (SHLX) is 7 / 10 and the dividend payout ratio is 96.83%.