Today we're going to take a closer look at Large-Cap Energy company Royal Dutch Shell PLC, whose shares are currently trading at $70.2. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!
an Increase in Expected Earnings Improves Its Value Outlook but Priced Beyond Its Margin of Safety:
Shell plc operates as an energy and petrochemical company Europe, Asia, Oceania, Africa, the United States, and other Americas. The company belongs to the Energy sector, which has an average price to earnings (P/E) ratio of 18.35 and an average price to book (P/B) ratio of 1.6. In contrast, Royal Dutch Shell PLC has a trailing 12 month P/E ratio of 15.6 and a P/B ratio of 2.36.
Royal Dutch Shell PLC has moved -0.5% over the last year compared to 11.4% for the S&P 500 — a difference of -11.9%. Royal Dutch Shell PLC has a 52 week high of $74.46 and a 52 week low of $58.55.
EPS Trend Sustained Primarily by Reducing the Number of Shares Outstanding:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $344,877 | $180,543 | $261,504 | $381,314 | $316,620 | $284,312 |
| Net Margins | 5% | -12% | 8% | 11% | 6% | 6% |
| Net Income (M) | $16,432 | -$21,534 | $20,630 | $42,874 | $19,636 | $16,521 |
| Net Interest Expense (M) | $4,690 | $4,089 | $3,607 | $3,181 | $4,673 | $4,787 |
| Depreciation & Amort. (M) | $6,699 | $52,444 | $8,223 | -$348 | $7,872 | $7,555 |
| Diluted Shares (M) | 7,881 | 7,807 | 7,684 | 6,971 | 6,486 | 6,084 |
| Earnings Per Share | $1.95 | -$2.78 | $2.57 | $5.71 | $2.85 | $2.53 |
| EPS Growth | n/a | -242.56% | 192.45% | 122.18% | -50.09% | -11.23% |
| Free Cash Flow (M) | $42,178 | $34,105 | $45,104 | $68,414 | $54,191 | $54,687 |
| Total Debt (M) | $81,360 | $91,115 | $80,868 | $74,794 | $71,610 | $65,448 |
| Current Ratio | 1.16 | 1.25 | 1.35 | 1.37 | 1.4 | 1.35 |
