Shell (SHEL)
NYSE:SHEL
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Shell
(NYSE:SHEL)
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Rating:66Neutral
Price Target:
$91.00
▲(3.63% Upside)
Action:Reiterated
Date:05/11/26
Overall score reflects strong fundamentals and shareholder-return commitment (solid profitability, manageable leverage, and supportive P/E plus dividend), partially offset by weaker cash-flow conversion and a notably bearish near-term technical setup (below key moving averages with negative MACD and low RSI/Stoch). Earnings call messaging was positive on capital allocation and resilience but acknowledged meaningful near-term operational and working-capital headwinds.
Positive Factors
Integrated, diversified business model
Shell’s integrated footprint across upstream, LNG, refining, chemicals, trading and retail increases resilience to commodity cycles. High refinery utilization and LNG ramp-ups improve margin capture and optionality, smoothing cash flows and enabling the firm to monetize dislocations over multi-year horizons.
Negative Factors
Weak cash conversion
Persistently low cash conversion versus earnings constrains financial flexibility over multiple quarters. Lower FCF relative to net income limits organic funding for capex, reduces excess return capacity for buybacks/dividends, and increases reliance on working-capital timing or asset recycling to meet commitments.
Read all positive and negative factors
Positive Factors
Negative Factors
Integrated, diversified business model
Shell’s integrated footprint across upstream, LNG, refining, chemicals, trading and retail increases resilience to commodity cycles. High refinery utilization and LNG ramp-ups improve margin capture and optionality, smoothing cash flows and enabling the firm to monetize dislocations over multi-year horizons.
Read all positive factors
Shell Key Performance Indicators (KPIs)
Any
LNG Sales Volume
Tracks the volume of liquefied natural gas sold, reflecting market demand, pricing power, and the company's strategic positioning in the global LNG market.
Tracks the volume of liquefied natural gas sold, reflecting market demand, pricing power, and the company's strategic positioning in the global LNG market.
Data provided by:
The Fly
The FlyShell (SHEL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$237.09B
Dividend Yield3.92%
Average Volume (3M)7.85M
Price to Earnings (P/E)11.6
Beta (1Y)0.15
Revenue Growth-5.34%
EPS Growth47.93%
CountryUS
Employees96,000
SectorEnergy
Sector Strength52
IndustryOil & Gas Integrated
Share Statistics
EPS (TTM)6.48
Shares Outstanding2,798,792,500
10 Day Avg. Volume6,657,206
30 Day Avg. Volume7,852,584
Financial Highlights & Ratios
PEG Ratio0.63
Price to Book (P/B)1.24
Price to Sales (P/S)0.81
P/FCF Ratio9.92
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue1.09
Enterprise Value/Gross Profit6.95
Enterprise Value/Ebitda5.04
Forecast
1Y Price Target
$104.57Price Target Upside19.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)9.77
Revenue Forecast (FY)$319.08B
Shell 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 Ener...
How the Company Makes Money
Shell makes money primarily by selling energy and energy-related products and services across multiple business lines. In its Upstream business, Shell earns revenue from producing and selling crude oil, natural gas, and natural gas liquids; realiz...
Shell Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive outlook: management reported strong Q1 adjusted earnings (~$7B) and robust cash flow (>$17B ex working capital), delivered notable operational milestones (record Brazil production, Mars 1bn barrel milestone, Bonga turnaround), advanced portfolio strategy (ARC acquisition raising 2030 CAGR to 4%), and increased shareholder returns (5% dividend uplift and $3B buyback). These positives were balanced against significant but largely described-as-transitory headwinds: a large $11B working capital outflow, lease-accounting driven net debt impacts, damage to Pearl GTL Train 2 with ~1-year repair, IG volume disruptions from Qatar, and continued depressed chemicals margins. Management framed the negatives as manageable, timing-related or accounting effects and emphasized balance-sheet strength and optionality, leading to an overall constructive tone.Positive Updates
Strong Adjusted Earnings and Cash Flow
Adjusted earnings for Q1 were just under $7 billion and cash flow from operations (excluding working capital) exceeded $17 billion, demonstrating strong cash generation in a volatile quarter.
Negative Updates
Large Working Capital Outflow
Working capital outflow for the quarter was approximately $11 billion driven by higher commodity prices (inventory and receivables). Management expects a significant portion of this outflow to reverse over time.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Adjusted Earnings and Cash Flow
Adjusted earnings for Q1 were just under $7 billion and cash flow from operations (excluding working capital) exceeded $17 billion, demonstrating strong cash generation in a volatile quarter.
Read all positive updates
Company Guidance
Management's guidance and forward-looking metrics emphasized disciplined capital allocation and resilience: Q1 adjusted earnings were just under $7.0 billion and cash flow from operations (ex. working capital) was over $17.0 billion, while working capital outflow was about $11.0 billion (expected to reverse over time); net debt at quarter end was $52.6 billion (excluding leases about $22.0 billion, with a ~ $3.0 billion lease-related uplift this quarter), and Pearl GTL Train 2 repair is expected to take ~1 year with repair costs well below $0.5 billion. They confirmed a $3.0 billion share buyback program over the next three months and a 5% dividend increase under a 40–50% of CFFO through‑the‑cycle distribution policy; full‑year 2026 cash CapEx is guided to $24–26 billion (including roughly $4.0 billion for the ARC acquisition), with 2027–28 cash CapEx remaining at $20–22 billion, and the ARC deal (75% shares / 25% cash) is expected to lift the company’s compound annual production growth rate to 2030 from ~1% to ~4% versus 2025.Shell Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
74
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 266.82B | 266.89B | 284.31B | 316.62B | 381.31B | 261.50B |
| Gross Profit | 41.65B | 42.49B | 45.94B | 47.21B | 78.78B | 35.85B |
| EBITDA | 57.44B | 56.66B | 61.65B | 60.36B | 92.55B | 56.51B |
| Net Income | 18.71B | 17.84B | 16.09B | 19.36B | 42.31B | 20.10B |
Balance Sheet | ||||||
| Total Assets | 380.60B | 370.35B | 387.61B | 406.27B | 443.02B | 404.38B |
| Cash, Cash Equivalents and Short-Term Investments | 23.12B | 30.22B | 39.11B | 38.77B | 40.25B | 36.97B |
| Total Debt | 75.64B | 104.58B | 77.14B | 81.64B | 83.80B | 89.09B |
| Total Liabilities | 206.00B | 195.03B | 207.44B | 217.91B | 250.43B | 229.05B |
| Stockholders Equity | 173.58B | 174.39B | 178.31B | 186.61B | 190.47B | 171.97B |
Cash Flow | ||||||
| Free Cash Flow | 18.80B | 21.82B | 35.08B | 31.20B | 45.81B | 26.11B |
| Operating Cash Flow | 37.78B | 40.81B | 54.68B | 54.19B | 68.41B | 45.10B |
| Investing Cash Flow | -17.20B | -18.83B | -15.15B | -17.73B | -22.45B | -4.76B |
| Financing Cash Flow | -33.31B | -31.76B | -38.43B | -38.23B | -41.95B | -34.66B |
Shell Technical Analysis
Neutral
87.81
Price Trends
86.32
Positive
79.59
Positive
75.44
Positive
Market Momentum
0.98
Positive
43.07
Neutral
20.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHEL, the sentiment is Neutral. The current price of 87.81 is below the 20-day moving average (MA) of 91.78, above the 50-day MA of 86.32, and above the 200-day MA of 75.44, indicating a neutral trend. The MACD of 0.98 indicates Positive momentum. The RSI at 43.07 is Neutral, neither overbought nor oversold. The STOCH value of 20.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SHEL.
Shell Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $654.57B | 42.42 | 9.77% | 3.35% | -3.07% | -21.84% | |
66 Neutral | $237.09B | 11.56 | 10.58% | 3.92% | -5.34% | 47.93% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $380.59B | 46.35 | 6.23% | 4.54% | -2.16% | -33.98% | |
64 Neutral | $98.19B | 8.48 | 13.33% | 7.43% | -1.94% | -30.62% | |
63 Neutral | $113.55B | 7.90 | 5.52% | 5.62% | 4.29% | ― |
* Energy Sector Average
SHEL
Shell
85.36
20.58
31.76%
BP
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TTE
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92.28
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65.23%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.