Shell (SHEL) AI Stock Analysis

• Market Cap: $213.29B
• Dividend Yield: 3.79%
• Average Volume (3M): 4.11M
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.29
• Revenue Growth: -6.96%
• EPS Growth: 0.03%
• Country: US
• Employees: 96,000
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Integrated
• EPS (TTM): 1.86
• Shares Outstanding: 2,888,381,600
• 10 Day Avg. Volume: 4,872,115
• 30 Day Avg. Volume: 4,110,599
• PEG Ratio: -1.07
• Price to Book (P/B): 1.11
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 5.62
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 0.95
• Enterprise Value/Gross Profit: 6.26
• Enterprise Value/Ebitda: 4.75
• 1Y Price Target: $71.86
• Price Target Upside: -3.18% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 6.41
• Revenue Forecast (FY): $270.28B

• Rating: 78 Outperform
• Price Target: $85.00 ▲(14.52% Upside)

Shell's overall stock score reflects a stable financial position with strong profitability and positive technical momentum. The earnings call provided a positive outlook, despite some challenges in specific segments. Valuation metrics suggest the stock is fairly valued, with limited upside potential.

Positive Factors

Operational Excellence in Upstream

Record production levels in key regions like Brazil and the Gulf of America indicate strong operational capabilities, supporting long-term growth and market position.

Successful LNG Operations

The successful start-up of LNG Canada enhances Shell's LNG capacity, strengthening its position in the growing global LNG market and supporting future revenue streams.

Shareholder Distributions and Buybacks

Consistent buyback programs reflect strong cash generation and commitment to returning value to shareholders, enhancing investor confidence and financial stability.

Negative Factors

Challenges in Chemicals Segment

Persistent margin pressures in the chemicals segment could hinder profitability, requiring strategic adjustments to maintain competitive advantage and financial health.

Impact of Inflation on OpEx

Rising operational expenses due to inflation could strain margins and cash flow, necessitating effective cost management to sustain profitability and investment capacity.

Cancellation of Biofuels Project

The cancellation of the biofuels project highlights potential market and policy risks, which may impact Shell's renewable energy strategy and long-term sustainability goals.

Shell Business Overview & Revenue Model

Company Description

Shell plc (SHEL) is a global energy company headquartered in the Netherlands, operating in various sectors including oil and gas exploration, production, refining, and distribution. The company is also heavily invested in renewable energy solutions such as wind and solar power, as well as electric vehicle charging infrastructure. Its core products and services include crude oil, natural gas, liquefied natural gas (LNG), petrochemicals, and various energy-related offerings, making Shell a key player in the transition to a more sustainable energy future.

How the Company Makes Money

Shell generates revenue primarily through the exploration and production of oil and gas, which includes upstream activities such as drilling and extraction. The company also earns significant income from refining and marketing oil products, including gasoline, diesel, and jet fuel. Additionally, Shell has a growing portfolio in renewable energy, which contributes to its revenue through power generation and sales of renewable energy solutions. The company's extensive network of service stations and retail operations further enhances its earnings by providing fuel and convenience products to consumers. Strategic partnerships, such as joint ventures with other energy companies and investments in technology for carbon capture and storage, also play a crucial role in enhancing Shell's revenue streams and positioning it within the evolving energy landscape.

Shell Financial Statement Overview

Summary

Shell presents a stable financial position with strong profitability and a solid balance sheet. However, challenges in revenue growth and cash flow generation persist. Continued focus on cost management and cash flow improvement is essential for sustaining financial health.

Income Statement

Shell's income statement shows a mixed performance. The TTM data indicates a slight decline in revenue growth at -1.23%, following a previous annual decline. Despite this, the company maintains healthy profitability with a net profit margin of 5.00% and an EBIT margin of 11.42%. The gross profit margin has decreased compared to previous years, indicating potential cost pressures. Overall, Shell demonstrates stable profitability but faces challenges in revenue growth.

Balance Sheet

Shell's balance sheet is robust, with a debt-to-equity ratio of 0.42, reflecting a conservative leverage position. The return on equity (ROE) stands at 7.49%, indicating efficient use of equity to generate profits. The equity ratio is strong, suggesting a solid capital structure. While the company has reduced its debt levels over time, maintaining this trajectory will be crucial for financial stability.

Cash Flow

The cash flow statement reveals a decline in free cash flow growth at -9.60% in the TTM period, indicating potential challenges in cash generation. However, the operating cash flow to net income ratio of 0.53 and free cash flow to net income ratio of 0.58 suggest that Shell is still generating sufficient cash relative to its net income. The company needs to focus on improving cash flow generation to support future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	268.66B	284.31B	316.62B	381.31B	261.50B	180.54B
Gross Profit	40.60B	45.94B	47.21B	78.78B	35.85B	-12.99B
EBITDA	53.48B	61.65B	60.36B	92.55B	56.51B	2.22B
Net Income	14.60B	16.09B	19.36B	42.31B	20.10B	-21.68B
Balance Sheet
Total Assets	377.74B	387.61B	406.27B	443.02B	404.38B	379.27B
Cash, Cash Equivalents and Short-Term Investments	33.05B	39.11B	38.77B	40.25B	36.97B	31.83B
Total Debt	73.98B	77.14B	81.64B	83.80B	89.09B	108.01B
Total Liabilities	199.91B	207.44B	217.91B	250.43B	229.05B	220.73B
Stockholders Equity	175.82B	178.31B	186.61B	190.47B	171.97B	155.31B
Cash Flow
Free Cash Flow	25.94B	35.08B	31.20B	45.81B	26.11B	17.52B
Operating Cash Flow	46.15B	54.68B	54.19B	68.41B	45.10B	34.10B
Investing Cash Flow	-16.47B	-15.15B	-17.73B	-22.45B	-4.76B	-13.28B
Financing Cash Flow	-38.76B	-38.43B	-38.23B	-41.95B	-34.66B	-7.22B

Shell Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 74.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHEL, the sentiment is Positive. The current price of 74.22 is above the 20-day moving average (MA) of 73.77, above the 50-day MA of 73.00, and above the 200-day MA of 68.92, indicating a bullish trend. The MACD of 0.51 indicates Positive momentum. The RSI at 52.44 is Neutral, neither overbought nor oversold. The STOCH value of 28.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SHEL.

Shell Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TTE	78 Outperform	$133.05B	9.60	12.27%	5.98%	-9.52%	-11.66%
SHEL	78 Outperform	$213.29B	14.97	8.06%	3.79%	-6.96%	0.03%
XOM	75 Outperform	$481.35B	16.58	11.32%	3.46%	-4.17%	-14.15%
CVX	74 Outperform	$314.05B	21.66	7.38%	4.29%	-3.48%	-22.05%
EQNR	69 Neutral	$60.37B	11.33	13.46%	8.93%	1.92%	-35.57%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
BP	63 Neutral	$90.88B	57.91	2.52%	5.48%	-4.11%	-37.59%

Shell Corporate Events

Shell’s Earnings Call Highlights Strong Performance

Shell’s recent earnings call painted a picture of robust financial health and operational success, particularly in its upstream and LNG segments. The company reported strong financial results, with new projects and operational efficiencies driving performance. However, challenges persist in the chemicals segment, where margin pressures and inflationary impacts are evident. The decision to cancel a biofuels project underscores concerns about market and policy risks. Despite these hurdles, Shell’s solid financial standing and shareholder distributions suggest a positive outlook.

Shell Reports Strong Q3 2025 Financial Performance

Shell Plc is a global energy company involved in the exploration, production, refining, and marketing of oil and gas, as well as renewable energy solutions. In its latest earnings report, Shell announced strong financial results for the third quarter of 2025, highlighting robust performance across its portfolio, particularly in its Marketing business and deepwater assets in the Gulf of America and Brazil. The company reported adjusted earnings of $5.4 billion and cash flow from operations of $12.2 billion, driven by record production levels and higher trading contributions. Shell also announced a new $3.5 billion share buyback program, marking the 16th consecutive quarter of buybacks exceeding $3 billion. The company’s balance sheet remains resilient, with net debt reduced to $41.2 billion. Looking ahead, Shell’s management remains focused on maintaining strong operational performance and shareholder returns, despite ongoing market volatility.