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Shell PLC SHEL

Morningstar Rating
GBX 2,937.00 +80.00 (2.80%)
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Company Report

Shell's Renewed Focus on Returns Pays Off; Increasing Fair Value Estimate

New Shell CEO Wael Sawan is sending the right message—that returns will take priority over growth—as he seeks to close the valuation gap with US peers. While it might not be enough, we believe the key actions accompanying the message, including reduced spending and increased distributions, are positive and crucial steps. Also, while the long-term outlook remains uncertain, with most guidance items only covering through 2025, we anticipate that the focus on returns will remain intact beyond then.

Price vs Fair Value

SHEL is trading within a range we consider fairly valued.
Price
GBX 2,937.00
Fair Value
GBX 4,915.00
Uncertainty
High
1-Star Price
GBX 7,216.00
5-Star Price
GBX 6,953.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Shell stands to benefit from the rise in global gas demand and likely strong prices over the next decade as LNG becomes integral to managing renewable intermittency.

Bears

Shell’s large LNG position puts it at risk if renewable power generation grows faster than expected or intermittency issues are solved, meaning natural gas will no longer be needed as a bridge fuel.

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News

Trading Information

Previous Close Price
GBX 2,857.00
Day Range
GBX 2,882.502,952.00
52-Week Range
GBX 2,214.002,952.00
Bid/Ask
GBX 2,890.00 / GBX 2,970.00
Market Cap
GBX 18.85 Tril
Volume/Avg
10.7 Mil / 17.9 Mil

Key Statistics

Price/Earnings (Normalized)
8.41
Price/Sales
0.76
Dividend Yield (Trailing)
3.62%
Dividend Yield (Forward)
3.80%
Total Yield
10.49%

Company Profile

Shell is an integrated oil and gas company that explores for, produces, and refines oil around the world. In 2023, it produced 1.5 million barrels of liquids and 7.3 billion cubic feet of natural gas per day. At end-2023, reserves stood at 9.6 billion barrels of oil equivalent, 49% of which, consisted of liquids. Its production and reserves are in Europe, Asia, Oceania, Africa, and North and South America. The company operates refineries with capacity of 1.6 mmb/d located in the Americas, Asia, Africa, and Europe and sells about 12 million tons per year of chemicals. Its largest chemical plants, often integrated with its local refineries, are in Central Europe, China, Singapore, and North America.
Sector
Energy
Industry
Oil & Gas Integrated
Stock Style Box
Large Value
Total Number of Employees
100,000

Competitors

Valuation

Metric
SHEL
XOM
TTE
Price/Earnings (Normalized)
8.4112.848.77
Price/Book Value
1.272.371.47
Price/Sales
0.761.480.81
Price/Cash Flow
5.708.305.14
Price/Earnings
SHEL
XOM
TTE

Financial Strength

Metric
SHEL
XOM
TTE
Quick Ratio
0.901.060.84
Current Ratio
1.401.481.12
Interest Coverage
7.4063.1716.33
Quick Ratio
SHEL
XOM
TTE

Profitability

Metric
SHEL
XOM
TTE
Return on Assets (Normalized)
6.70%10.42%7.98%
Return on Equity (Normalized)
14.92%19.34%20.21%
Return on Invested Capital (Normalized)
10.59%15.75%13.44%
Return on Assets
SHEL
XOM
TTE
See how this stock stacks up to its competitors with Morningstar Investor

Oil & Gas Integrated Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
XOM
Exxon Mobil CorpZnywgbckRqjkqlm$476.5 Bil
CVX
Chevron CorpDzbvpbwzmmYmvznb$300.9 Bil
PCCYF
PetroChina Co Ltd Class HXhv$249.5 Bil
SHEL
Shell PLC ADR (Representing - Ordinary Shares)NmznmqbsPny$236.5 Bil
RYDAF
Shell PLCCwl$229.8 Bil
TTE
TotalEnergies SE ADRCnxvncdCgksp$172.0 Bil
BP
BP PLC ADRMjzgjjfxNrtk$110.2 Bil
PBR
Petroleo Brasileiro SA Petrobras ADRCzhnqczjJznn$102.2 Bil
EQNR
Equinor ASA ADRFwzbstfNmcv$84.9 Bil
E
Eni SpA ADRBvcfdycsbHywc$52.6 Bil

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