Shell (SHEL) AI Stock Analysis

• Market Cap: $202.84B
• Dividend Yield: 3.92%
• Average Volume (3M): 3.38M
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.31
• 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: 2,855,694,600
• 10 Day Avg. Volume: 2,901,840
• 30 Day Avg. Volume: 3,383,111
• 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: 1.25
• Enterprise Value/Revenue: 0.95
• Enterprise Value/Gross Profit: 6.26
• Enterprise Value/Ebitda: 4.71
• 1Y Price Target: $76.49
• Price Target Upside: 8.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: $85.00 ▲(20.89% 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 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 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. In addition, it trades in and refines crude oil and other feed stocks, such as low-carbon fuels, lubricants, bitumen, sulphur, gasoline, diesel, 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. 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 through multiple key streams, primarily from the sale of oil and natural gas. In the Upstream segment, the company earns income by extracting crude oil and natural gas, which is then sold to various markets. The Downstream segment contributes significantly to revenue through refining crude oil into petroleum products, such as gasoline and diesel, as well as through petrochemicals production. Additionally, Shell's Integrated Gas segment focuses on liquefied natural gas (LNG) sales and gas-to-liquids (GTL) projects. Strategic partnerships with other energy firms, joint ventures in exploration and production, and investments in renewable energy projects also bolster Shell's earnings, as the company adapts to the shifting 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	53.98B	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: Negative
• Last Price: 70.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHEL, the sentiment is Negative. The current price of 70.31 is below the 20-day moving average (MA) of 72.63, below the 50-day MA of 73.56, and above the 200-day MA of 70.04, indicating a neutral trend. The MACD of -0.22 indicates Positive momentum. The RSI at 37.15 is Neutral, neither overbought nor oversold. The STOCH value of 14.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SHEL.

Shell Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHEL	78 Outperform	$202.84B	14.28	8.06%	3.92%	-6.96%	0.03%
XOM	75 Outperform	$499.69B	17.85	11.32%	3.35%	-4.17%	-14.15%
CVX	71 Outperform	$312.50B	22.48	7.38%	4.54%	-3.44%	-22.05%
EQNR	69 Neutral	$58.30B	11.25	13.46%	7.43%	1.53%	-35.81%
BP	68 Neutral	$85.85B	56.27	2.52%	5.62%	-4.11%	-37.59%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Shell Corporate Events

Shell Continues December 2025 Share Buybacks Under Ongoing Capital Return Programme

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 days, the company bought back roughly 1.48 million shares per day in aggregate, at volume-weighted average prices of about 28 pence in London (in GBP) and around €32 per share in Amsterdam, as part of the on- and off‑market limbs of the capital return plan that runs from 30 October 2025 to 30 January 2026. Merrill Lynch International is conducting the transactions independently of Shell within pre-set parameters and under UK and EU market abuse and listing rules, underscoring Shell’s ongoing use of buybacks as a core tool for shareholder returns and balance sheet optimisation.

The most recent analyst rating on (SHEL) stock is a Hold with a $3100.00 price target. To see the full list of analyst forecasts on Shell stock, see the SHEL Stock Forecast page.

Shell Discloses Executive Dividend Share Acquisitions Following Q3 2025 Payout

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 through the automatic reinvestment of the company’s third-quarter 2025 interim dividend paid on 18 December 2025. The dividend shares relate to stock previously awarded under annual bonus and employee share plans and held in share plan accounts, and were acquired across Shell’s listings in Amsterdam, London and New York at prevailing market prices, underscoring the ongoing alignment of senior management’s remuneration with shareholder returns under EU and UK market abuse disclosure rules.

The most recent analyst rating on (SHEL) stock is a Hold with a $3100.00 price target. To see the full list of analyst forecasts on Shell stock, see the SHEL Stock Forecast page.