Shell CEO Wael Sawan continues to send 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.
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.
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.
|
Metric
|
SHEL
|
TTE
|
BP
|
|---|---|---|---|
Price/Earnings (Normalized) | 12.60 | 10.61 | 11.67 |
Price/Book Value | 1.38 | 1.41 | 1.93 |
Price/Sales | 0.95 | 0.97 | 0.57 |
Price/Cash Flow | 5.56 | 6.06 | 3.17 |
|
Metric
|
SHEL
|
TTE
|
BP
|
|---|---|---|---|
Quick Ratio | 0.82 | 0.51 | 0.69 |
Current Ratio | 1.27 | 1.08 | 1.22 |
Interest Coverage | 6.55 | 10.32 | 3.09 |
|
Metric
|
SHEL
|
TTE
|
BP
|
|---|---|---|---|
Return on Assets (Normalized) | 5.23% | 5.67% | 4.70% |
Return on Equity (Normalized) | 11.33% | 14.29% | 23.57% |
Return on Invested Capital (Normalized) | 8.63% | 9.76% | 10.60% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| ExxonMobil Holdings Corp
XOM
| LOCK|@s&fmT@@ | LOCK|^dxF | $611B | |||
| Chevron Corp
CVX
| LOCK|##tB$%$ | LOCK|?VW! | $373B | |||
| PetroChina Co Ltd Class H
PCCYF
| — | LOCK|Z% | $272B | |||
| Shell PLC
RYDAF
| — | LOCK|$> | $241B | |||
| Shell PLC ADR (Representing - Ordinary Shares)
SHEL
| LOCK|hD<@kYt | LOCK|x< | $241B | |||
| TotalEnergies SE
TTE
| LOCK|r&N@q!W | LOCK|$> | $179B | |||
| Petroleo Brasileiro SA Petrobras ADR
PBR
| LOCK|t@RlLq? | LOCK|M< | $110B | |||
| BP PLC ADR
BP
| LOCK|$$Y?l^> | LOCK|c< | $108B | |||
| Equinor ASA ADR
EQNR
| LOCK|DC&n?!R | LOCK|KF | $88B | |||
| Eni SpA ADR
E
| LOCK|#Gt@vH | LOCK|w#! | $72B |
United States