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Shell PLC SHEL

Morningstar Rating
GBX 2,559.50 +6.00 (0.24%)
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Company Report

Shell Earnings: Strong Results Lead to Increase in Repurchases, Which Demonstrates Appeal

No-moat Shell's adjusted third-quarter earnings fell to $6.2 billion from $9.5 billion the year before, largely meeting market expectations, on lower oil and gas prices, lower production volumes, which were offset only in part by slightly higher refined product margins and stronger chemical margins. Total production fell to 2.706 thousand barrels of oil equivalent per day from 2,766 mboe/d last year largely because of divestments and planned maintenance.

Price vs Fair Value

SHEL is trading at a 2% discount.
Price
GBX 2,553.46
Fair Value
GBX 3,959.00
Uncertainty
High
1-Star Price
GBX 1,912.00
5-Star Price
GBX 2,845.00
Economic Moat
Ycs
Capital Allocation
Jyllnszbw

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 2,553.50
Day Range
GBX 2,544.502,621.50
52-Week Range
GBX 2,149.452,801.00
Bid/Ask
GBX 2,559.00 / GBX 2,560.50
Market Cap
GBX 16.82 Tril
Volume/Avg
16.2 Mil / 12.8 Mil

Key Statistics

Price/Earnings (Normalized)
7.01
Price/Sales
0.64
Dividend Yield
3.89%
Dividend Yield (Forward)
3.29%
Total Yield
11.60%

Company Profile

Shell is an integrated oil and gas company that explores for, produces, and refines oil around the world. In 2022, it produced 1.5 million barrels of liquids and 7.9 billion cubic feet of natural gas per day. At year-end 2022, reserves stood at 9.4 billion barrels of oil equivalent, 50% 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 1.7 mmb/d located in the Americas, Asia, Africa, and Europe and sells 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
93,000

Competitors

Valuation

Metric
SHEL
XOM
BP
Price/Earnings (Normalized)
7.019.806.82
Price/Book Value
1.092.031.42
Price/Sales
0.641.230.48
Price/Cash Flow
4.826.902.23
Price/Earnings
SHEL
XOM
BP

Financial Strength

Metric
SHEL
XOM
BP
Quick Ratio
1.001.050.74
Current Ratio
1.481.421.21
Interest Coverage
9.5978.8111.74
Quick Ratio
SHEL
XOM
BP

Profitability

Metric
SHEL
XOM
BP
Return on Assets (Normalized)
7.19%11.56%5.56%
Return on Equity (Normalized)
16.24%21.79%23.00%
Return on Invested Capital (Normalized)
11.83%17.60%12.36%
Return on Assets
SHEL
XOM
BP

Oil & Gas Integrated Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
XOM
Exxon Mobil CorpTrnkkgq$410.0 Bil
CVX
Chevron CorpVwnbnqh$271.7 Bil
RYDAF
Shell PLCVktz$213.1 Bil
SHEL
Shell PLC ADR (Representing - Ordinary Shares)Cpdh$213.1 Bil
PCCYF
PetroChina Co Ltd Class HSjn$175.2 Bil
TTE
TotalEnergies SE ADRTsczv$160.6 Bil
BP
BP PLC ADRChmp$101.6 Bil
PBR
Petroleo Brasileiro SA Petrobras ADRVcs$97.1 Bil
EQNR
Equinor ASA ADRCclch$95.2 Bil
E
Eni SpA ADRNfq$53.9 Bil