Shell plc
Shell plc Fundamental Analysis
Shell plc (RYDAF) shows moderate financial fundamentals with a PE ratio of 12.95, profit margin of 6.55%, and ROE of 10.05%. The company generates $269.8B in annual revenue with weak year-over-year growth of -10.20%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 31.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RYDAF's fundamental strength across five key dimensions:
Efficiency Score
WeakRYDAF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRYDAF trades at attractive valuation levels.
Growth Score
WeakRYDAF faces weak or negative growth trends.
Financial Health Score
ExcellentRYDAF maintains a strong and stable balance sheet.
Profitability Score
WeakRYDAF struggles to sustain strong margins.
Key Financial Metrics
Is RYDAF Expensive or Cheap?
P/E Ratio
RYDAF trades at 12.95 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RYDAF's PEG of 0.55 indicates potential undervaluation.
Price to Book
The market values Shell plc at 1.32 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.75 times EBITDA. This is generally considered low.
How Well Does RYDAF Make Money?
Net Profit Margin
For every $100 in sales, Shell plc keeps $6.55 as profit after all expenses.
Operating Margin
Core operations generate 11.51 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.05 in profit for every $100 of shareholder equity.
ROA
Shell plc generates $4.81 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Shell plc produces operating cash flow of $41.34B, showing steady but balanced cash generation.
Free Cash Flow
Shell plc produces free cash flow of $22.50B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.96 in free cash annually.
FCF Yield
RYDAF converts 9.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.95
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.55
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.32
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.84
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.60
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.30
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How RYDAF Stacks Against Its Sector Peers
| Metric | RYDAF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.95 | 19.94 | Better (Cheaper) |
| ROE | 10.05% | 987.00% | Weak |
| Net Margin | 6.55% | -42983.00% (disorted) | Weak |
| Debt/Equity | 0.60 | -0.60 (disorted) | Distorted |
| Current Ratio | 1.30 | 4.67 | Neutral |
| ROA | 4.81% | -11498250.00% (disorted) | Weak |
RYDAF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Shell plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
5.45%
Industry Style: Cyclical, Value, Commodity
GrowingEPS CAGR
29.95%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
65.85%
Industry Style: Cyclical, Value, Commodity
High Growth