Shell (UK) (SHEL) AI Stock Analysis

• Market Cap: £156.06B
• Dividend Yield: 4.03%
• Average Volume (3M): 7.80M
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.96
• Revenue Growth: -8.55%
• EPS Growth: -22.62%
• Country: UK
• Employees: 96,000
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Integrated
• EPS (TTM): 0.53
• Shares Outstanding: 5,811,432,600
• 10 Day Avg. Volume: 10,439,410
• 30 Day Avg. Volume: 7,804,566
• PEG Ratio: -1.15
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 5.56
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £3,004.74
• Price Target Upside: 12.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 75 Outperform
• Price Target: 2,972.00p ▲(10.87% Upside)

Shell's overall stock score reflects its solid financial performance and strategic achievements, such as cost reductions and LNG Canada start-up. The fair valuation and attractive dividend yield further support the score. However, challenges in revenue growth and specific business segments slightly temper the outlook.

Positive Factors

Cost Reductions

Significant cost reductions enhance operational efficiency, improve margins, and support long-term financial stability, aligning with strategic goals.

LNG Canada Start-Up

The LNG Canada start-up strengthens Shell's market position in LNG, offering strategic advantages with shorter transit routes to Asia, supporting growth.

Strong Cash Flow

Robust cash flow generation supports Shell's ability to fund investments, return capital to shareholders, and maintain a strong balance sheet.

Negative Factors

Revenue Decline

Declining revenue growth suggests challenges in market demand or competitive pressures, potentially impacting long-term profitability and market share.

Challenging Chemical & Products Segment

Persistent challenges in the Chemicals & Products segment could strain overall profitability and require strategic adjustments to improve performance.

Exploration Program Reset

Resetting the exploration program indicates past inefficiencies and may delay resource development, impacting future growth and resource replacement.

Shell (UK) Business Overview & Revenue Model

Company Description

Shell plc operates as an energy and petrochemical company Europe, Asia, Oceania, Africa, the United States, and Rest of the Americas. The company operates through Integrated Gas, Upstream, Marketing, Chemicals and Products, and Renewables and Energy Solutions segments. It explores for and extracts crude oil, natural gas, and natural gas liquids; markets and transports oil and gas; produces gas-to-liquids fuels and other products; and operates upstream and midstream infrastructure necessary to deliver gas to market. The company also markets and trades natural gas, liquefied natural gas (LNG), crude oil, electricity, carbon-emission rights; and markets and sells LNG as a fuel for heavy-duty vehicles and marine vessels. In addition, it trades in and refines crude oil and other feed stocks, such ase low-carbon fuels, lubricants, bitumen, sulphur, gasoline, diesel, heating oil, aviation fuel, and marine fuel; produces and sells petrochemicals for industrial use; and manages oil sands activities. Further, the company produces base chemicals comprising ethylene, propylene, and aromatics, as well as intermediate chemicals, such as styrene monomer, propylene oxide, solvents, detergent alcohols, ethylene oxide, and ethylene glycol. Additionally, it generates electricity through wind and solar resources; produces and sells hydrogen; and provides electric vehicle charging services, as well as electricity storage. The company was formerly known as Royal Dutch Shell plc and changed its name to Shell plc in January 2022. Shell plc was founded in 1907 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Shell generates revenue from several key streams. The upstream segment earns money through the exploration and production of crude oil and natural gas, which is sold in global markets. The downstream segment generates income from refining crude oil into various products, including gasoline, diesel, and jet fuel, as well as from the sale of lubricants and chemicals. Additionally, Shell has a growing presence in the retail sector, with revenues coming from the sale of fuels and convenience store products at its service stations. The company also invests heavily in renewable energy initiatives, which are becoming increasingly important to its revenue model. Strategic partnerships with other energy firms, technology providers, and governments enhance Shell's capabilities and access to new markets, further contributing to its earnings.

Shell (UK) Financial Statement Overview

Summary

Shell demonstrates financial stability with strong balance sheet metrics and efficient operations. However, the recent decline in revenue and free cash flow growth could pose challenges. The company needs to focus on reversing the negative growth trends to maintain its financial health.

Income Statement

Shell's income statement shows a mixed performance. The company has maintained a stable gross profit margin and net profit margin over the years, with a slight decline in the TTM period. The revenue growth rate has been negative recently, indicating a contraction in sales. However, the EBIT and EBITDA margins remain healthy, reflecting operational efficiency.

Balance Sheet

Shell's balance sheet is strong, with a low debt-to-equity ratio in the TTM period, indicating prudent financial management. The return on equity has decreased but remains positive, suggesting profitability. The equity ratio is stable, showing a solid capital structure.

Cash Flow

The cash flow statement reveals a decline in free cash flow growth in the TTM period, which could be a concern. However, the operating cash flow to net income ratio is healthy, indicating good cash generation relative to net income. The free cash flow to net income ratio also remains robust.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	272.01B	284.31B	316.62B	381.31B	261.50B	180.54B
Gross Profit	40.42B	45.94B	47.21B	78.78B	35.85B	-12.99B
EBITDA	53.06B	61.65B	60.36B	92.55B	56.51B	2.22B
Net Income	13.60B	16.09B	19.36B	42.31B	20.10B	-21.68B
Balance Sheet
Total Assets	387.92B	387.61B	406.27B	443.02B	404.38B	379.27B
Cash, Cash Equivalents and Short-Term Investments	32.68B	39.11B	38.77B	40.25B	36.97B	31.83B
Total Debt	75.73B	77.14B	81.64B	83.80B	89.09B	108.01B
Total Liabilities	204.83B	207.44B	217.91B	250.43B	229.05B	220.73B
Stockholders Equity	181.14B	178.31B	186.61B	190.47B	171.97B	155.31B
Cash Flow
Free Cash Flow	28.69B	35.09B	31.20B	45.81B	26.11B	17.52B
Operating Cash Flow	49.06B	54.69B	54.19B	68.41B	45.10B	34.10B
Investing Cash Flow	-17.65B	-15.15B	-17.73B	-22.45B	-4.76B	-13.28B
Financing Cash Flow	-37.63B	-38.44B	-38.23B	-41.95B	-34.66B	-7.22B

Shell (UK) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2680.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SHEL, the sentiment is Positive. The current price of 2680.5 is above the 20-day moving average (MA) of 2652.48, above the 50-day MA of 2661.52, and above the 200-day MA of 2558.07, indicating a bullish trend. The MACD of 6.00 indicates Negative momentum. The RSI at 53.20 is Neutral, neither overbought nor oversold. The STOCH value of 52.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SHEL.

Shell (UK) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHEL	75 Outperform	£156.06B	15.60	7.54%	4.03%	-8.55%	-22.62%
BP.B	65 Neutral	£65.99B	―	0.95%	5.47%	―	―
BP	63 Neutral	£65.99B	163.75	1.03%	5.74%	-9.96%	-92.38%
BP.A	61 Neutral	£65.99B	―	1.03%	5.42%	―	―
HBR	61 Neutral	£3.48B	-9.16	-1.49%	8.40%	123.03%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Shell (UK) Corporate Events

Shell plc Advances Share Buy-Back Program

Shell plc announced the purchase of its own shares as part of an ongoing buy-back program, initially announced on 31 July 2025. The transactions, executed by HSBC Bank plc, are part of both on-market and off-market buy-back strategies, adhering to regulatory frameworks such as the UK Listing Rules and Market Abuse Regulations. This move is expected to impact Shell’s financial structure by reducing the number of outstanding shares, potentially increasing shareholder value.

The most recent analyst rating on (GB:SHEL) stock is a Buy with a £30.00 price target. To see the full list of analyst forecasts on Shell (UK) stock, see the GB:SHEL Stock Forecast page.

Shell plc Advances Share Buy-Back Program

Shell plc announced the purchase of its own shares as part of an ongoing share buy-back program, which was initially revealed on 31 July 2025. The program is being executed under the guidance of HSBC Bank plc and adheres to both UK and EU regulations, reflecting Shell’s strategic efforts to manage its capital structure and enhance shareholder value.

The most recent analyst rating on (GB:SHEL) stock is a Buy with a £30.00 price target. To see the full list of analyst forecasts on Shell (UK) stock, see the GB:SHEL Stock Forecast page.

Shell plc Advances Share Buy-Back Programme

Shell plc announced the purchase of its own shares as part of an ongoing buy-back program initiated on 31 July 2025. This move, executed through various trading venues, is part of Shell’s strategy to manage its capital structure and return value to shareholders, aligning with regulatory frameworks such as the UK Listing Rules and Market Abuse Regulations.

The most recent analyst rating on (GB:SHEL) stock is a Buy with a £2936.00 price target. To see the full list of analyst forecasts on Shell (UK) stock, see the GB:SHEL Stock Forecast page.

Shell Announces Q2 2025 Dividend Payments in Euros and GBP

Shell plc announced the euro and pound sterling equivalent dividend payments for the second quarter of 2025, following the initial announcement of a US$0.358 per ordinary share dividend. The dividends, payable on September 22, 2025, have been converted from US dollars based on recent market exchange rates. This announcement highlights Shell’s ongoing commitment to shareholder returns amidst its broader strategic focus on energy transition and market adaptation.

The most recent analyst rating on (GB:SHEL) stock is a Buy with a £2936.00 price target. To see the full list of analyst forecasts on Shell (UK) stock, see the GB:SHEL Stock Forecast page.

Shell plc Advances Share Buy-Back Program

Shell plc announced the purchase of its own shares as part of an ongoing buy-back program, which was initially announced on 31 July 2025. This program, managed independently by HSBC Bank plc, involves both on-market and off-market transactions and adheres to regulatory frameworks such as the UK Listing Rules and Market Abuse Regulations. The initiative is expected to impact Shell’s capital structure by reducing the number of outstanding shares, potentially enhancing shareholder value.

The most recent analyst rating on (GB:SHEL) stock is a Buy with a £3000.00 price target. To see the full list of analyst forecasts on Shell (UK) stock, see the GB:SHEL Stock Forecast page.