Shell (SHEL)
NYSE:SHEL
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Shell
(NYSE:SHEL)
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Rating:71Outperform
Price Target:
$102.00
â–²(10.67% Upside)
Action:ReiteratedDate:02/07/26
The score is driven primarily by solid but cooling financial performance (declining revenue since 2022 and weaker 2025 free cash flow) balanced by a resilient balance sheet. Support comes from constructive price trends and reasonable valuation (modest P/E and strong dividend). Earnings call messaging reinforced disciplined capital returns and cost-out execution, tempered by safety issues, Chemicals weakness, and shorter reserve/resource life.
Positive Factors
Structural cost reductions
Delivering $5.1bn of structural savings early indicates durable, programmatic efficiency gains that lower the company's fixed cost base. These savings improve margin resilience across commodity cycles, boost normalized free cash flow and provide flexibility for reinvestment, dividends, or selective M&A.
Negative Factors
Three‑year revenue decline
A multi‑year revenue contraction reduces economies of scale and weakens operating leverage, pressuring margins and free cash flow sustainability. Continued top‑line shrinkage signals structural demand or portfolio mix challenges that require strategic fixes to restore long‑term organic growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Structural cost reductions
Delivering $5.1bn of structural savings early indicates durable, programmatic efficiency gains that lower the company's fixed cost base. These savings improve margin resilience across commodity cycles, boost normalized free cash flow and provide flexibility for reinvestment, dividends, or selective M&A.
Read all positive factors
Shell (SHEL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$260.69B
Dividend Yield3.92%
Average Volume (3M)7.10M
Price to Earnings (P/E)12.1
Beta (1Y)0.23
Revenue Growth-6.96%
EPS Growth0.03%
CountryUS
Employees96,000
SectorEnergy
Sector Strength52
IndustryOil & Gas Integrated
Share Statistics
EPS (TTM)1.14
Shares Outstanding2,821,840,300
10 Day Avg. Volume8,310,092
30 Day Avg. Volume7,100,033
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 Cap1.28
Enterprise Value/Revenue1.25
Enterprise Value/Gross Profit7.63
Enterprise Value/Ebitda6.10
Forecast
1Y Price Target
$89.17Price Target Upside-3.25% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)7.75
Revenue Forecast (FY)$286.07B
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 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 Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call communicated strong execution on cost reduction, cash generation, disciplined capital allocation and clear progress on emissions and LNG growth, supported by improving ROACE in key businesses and multiple successful portfolio moves. Material negatives include four workplace fatalities, ongoing Chemicals underperformance that drags returns, a decline in reserve life from strategic divestments and near-term sensitivity to oil prices and tax adjustments. Management emphasizes strategic patience, further cost and portfolio actions, and selective M&A to fill future resource gaps.Positive Updates
Structural cost reduction target met early
Achieved $5.1 billion of structural cost reductions by end-2025 (target $5–7 billion by 2028), delivered three years early; nearly 60% of reductions came from operational efficiencies, a leaner corporate centre and faster decision-making.
Negative Updates
Workplace fatalities
Four colleagues tragically lost their lives in operated businesses in 2025 — a major human and reputational negative; management reiterated focus on learning and prevention.
Read all updates
Q4-2025 Updates
Positive
Negative
Structural cost reduction target met early
Achieved $5.1 billion of structural cost reductions by end-2025 (target $5–7 billion by 2028), delivered three years early; nearly 60% of reductions came from operational efficiencies, a leaner corporate centre and faster decision-making.
Read all positive updates
Company Guidance
Shell reiterated a disciplined capital and returns framework: a cash CapEx range of $20–22bn (2026), shareholder distributions of 40–50% of CFFO (2025 delivered at the top end), a 4% dividend increase and a $3.5bn buyback to complete by May (17th consecutive quarter ≥$3bn), and a target to grow normalized free cash flow per share >10% p.a. through 2030; cost‑out guidance remains $5–7bn structural savings by 2028 (already $5.1bn achieved by end‑2025, ~60% from operational efficiencies). Key 2025 metrics supporting this guidance: Q4 adjusted earnings $3.3bn and CFFO $9.4bn; FY adjusted earnings $18.5bn, CFFO ≈$43bn and free cash flow ≈$26bn; gearing ~21% (9% excl. leases); ROACE 9.4% (Mobility >15%, Lubricants >21%). Operational and ESG milestones reiterated include LNG sales growth 4–5% p.a. to 2030 (sales +11% in 2025), commitments to bring >1m boe/d of new peak production by 2030 (>25% already started), elimination of 100% routine flaring, ~70% progress toward the Scope 1&2 2030 target, product carbon intensity −9% and customer‑use emissions −18% vs 2016.Shell Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
70
Positive
Cash Flow
63
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 267.51B | 284.31B | 316.62B | 381.31B | 261.50B |
| Gross Profit | 44.59B | 45.94B | 47.21B | 78.78B | 35.85B |
| EBITDA | 53.00B | 61.65B | 60.36B | 92.55B | 56.51B |
| Net Income | 17.88B | 16.09B | 19.36B | 42.31B | 20.10B |
Balance Sheet | |||||
| Total Assets | 370.35B | 387.61B | 406.27B | 443.02B | 404.38B |
| Cash, Cash Equivalents and Short-Term Investments | 30.22B | 39.11B | 38.77B | 40.25B | 36.97B |
| Total Debt | 104.58B | 77.14B | 81.64B | 83.80B | 89.09B |
| Total Liabilities | 195.03B | 207.44B | 217.91B | 250.43B | 229.05B |
| Stockholders Equity | 174.39B | 178.31B | 186.61B | 190.47B | 171.97B |
Cash Flow | |||||
| Free Cash Flow | 21.82B | 35.08B | 31.20B | 45.81B | 26.11B |
| Operating Cash Flow | 40.81B | 54.68B | 54.19B | 68.41B | 45.10B |
| Investing Cash Flow | -18.83B | -15.15B | -17.73B | -22.45B | -4.76B |
| Financing Cash Flow | -31.76B | -38.43B | -38.23B | -41.95B | -34.66B |
Shell Technical Analysis
Positive
92.17
Price Trends
81.42
Positive
77.08
Positive
73.85
Positive
Market Momentum
3.20
Positive
72.49
Negative
80.95
Negative
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 92.17 is above the 20-day moving average (MA) of 88.38, above the 50-day MA of 81.42, and above the 200-day MA of 73.85, indicating a bullish trend. The MACD of 3.20 indicates Positive momentum. The RSI at 72.49 is Negative, neither overbought nor oversold. The STOCH value of 80.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SHEL.
Shell Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $421.33B | 24.67 | 7.33% | 4.54% | -3.44% | -22.05% | |
73 Outperform | $712.47B | 18.07 | 11.04% | 3.35% | -4.17% | -14.15% | |
71 Outperform | $260.69B | 12.10 | 10.06% | 3.92% | -6.96% | 0.03% | |
66 Neutral | $104.95B | 12.11 | 3.33% | 7.43% | 1.53% | -35.81% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
60 Neutral | $119.63B | 1,640.39 | 0.10% | 5.62% | -4.11% | -37.59% |
* Energy Sector Average
SHEL
Shell
92.17
21.72
30.83%
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Shell Corporate Events
Shell Steps Up January 2026 Share Buy-Backs in London and Amsterdam
Feb 2, 2026
On 2, 5 and 6 January 2026, Shell plc continued executing its previously announced share buy-back programme, repurchasing and cancelling more than 2.9 million shares across the London Stock Exchange and Euronext Amsterdam. The transactions, carrie...
Shell Continues December 2025 Share Buybacks Under Ongoing Capital Return Programme
Jan 2, 2026
On 1, 2 and 3 December 2025, Shell plc continued executing its previously announced share buyback programme, repurchasing and cancelling tranches of its own shares on the London Stock Exchange and Euronext Amsterdam. Across these three trading day...
Shell Discloses Executive Dividend Share Acquisitions Following Q3 2025 Payout
Dec 29, 2025
On 24 December 2025, Shell plc disclosed that several persons discharging managerial responsibilities, including Chief Executive Officer Wael Sawan and Chief Financial Officer Sinead Gorman, received additional Shell shares on 22 December 2025 thr...
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.