SHEL Analysis — TradeApes

Shell plc (SHEL)

Energy Oil & Gas E&P

$85.40 close · Jun 06, 2026

Above 200 SMA

52W -9.3% from High

Methodology Breakdown

Triangulated across multiple voting methods. The breakdown below shows each method's output and which ones voted on the final verdict.

Method	Value	Role
DCF (Base Case)	$107.43	REFERENCE
DCF (TTM-anchored)	$172.51	REFERENCE
Peer Multiples	$105.09	REFERENCE
Earnings Power Value	$76.04	REFERENCE
Book Value Anchor	$39.10	REFERENCE
Earnings Anchor	$36.66	REFERENCE

Triangulation spread: 63% across voting methods.

📈

Undervalued -65.7%

Market cap (507.95B) is 65.7% below the bear-case DCF fair value (1482.97B)

Jun 05

Health Score

Out of 100

Mixed

Pillar Scores

Financial Strength 55

Operating Trend 40

Valuation 45

Capital Allocation 70

Risk Management 70

Positives

↑ High FCF yield — above 7%, strong cash return relative to price paid +3.8

↑ Free cash flow positive — business generates real spendable cash +2.5

↑ Strong FCF growth — free cash flow up more than 20% year over year +2.5

Concerns

↓ Sharp revenue decline — sales down more than 15% year over year -5.0

↓ Extreme P/E — above 45×, very high expectations embedded in price -5.0

↓ Thin interest coverage — EBIT covers interest just 2–4× -1.3

Signal contribution: +11.9 from strengths -12.3 from concerns

Health Score Trend 5 snapshots

Cross-Check: Greenblatt Magic Formula

⚠ —

Earnings Yield

2.5%

Rank 945 / 1256

Return on Capital

60.3%

Rank 465 / 1256

Combined Rank

36th pctl

1256 companies ranked

Based on Joel Greenblatt's Magic Formula methodology. Not investment advice.

Financials

TTM Financials

Revenue ?Total sales generated from the company's primary business activities over the trailing twelve months.	134.64B
Gross Profit ?Revenue minus cost of goods sold. What remains before operating expenses — reflects pricing power and production efficiency.	—
Operating Income ?Profit from core business operations after all operating expenses (EBIT). Excludes interest and taxes.	14.93B
Net Income ?Bottom-line profit after all expenses, interest, and taxes are deducted from revenue.	8.52B
Free Cash Flow ?Operating cash flow minus capital expenditures. The actual cash the business generates after maintaining its assets — the truest measure of profitability.	70.71B
EBITDA ?Earnings before interest, taxes, depreciation & amortization. A proxy for operating cash earnings that strips out accounting and financing differences.	25.53B
Total Debt ?Combined short-term and long-term interest-bearing debt obligations. Compare against cash and earnings to gauge leverage risk.	84.27B
Cash & Equivalents ?Highly liquid assets on hand — cash, money market funds, and short-term securities. The company's immediate financial cushion.	30.22B

Valuation

Market Cap	507.95B
Enterprise Value	590.93B
EV / Revenue	4.4x
EV / EBITDA	23.1x
P/E (TTM)	59.6x
Forward P/E	—
PEG	—
P/FCF	7.2x
FCF Yield	13.9%

EV/EBITDA vs history — 53% percentile (mid-range)

CheapMidExpensive

EV/Sales vs history — 40% percentile (mid-range)

CheapMidExpensive

P/Book vs history — 21% percentile (historically cheap)

CheapMidExpensive

Relative Valuation

Using relative multiples

EV / Revenue

4.4x

Book Value / Share

$29.48

Price / Book

2.9x

P/E (TTM)

59.6x

Price / Sales

3.8x

Key Metrics

Gross Margin ?Gross profit as a % of revenue. Measures how efficiently the company produces its goods or services — higher is better.	—
EBITDA Margin ?EBITDA as a % of revenue. Shows core operating profitability before accounting adjustments — useful for comparing across industries.	19.0%
Net Margin ?Net income as a % of revenue. The ultimate measure of overall profitability after every expense, interest payment, and tax is accounted for.	6.3%
FCF Margin ?Free cash flow as a % of revenue. Shows how much of each dollar of revenue converts into real, spendable cash.	52.5%
Revenue Growth (YoY) ?Year-over-year change in total revenue. Measures business momentum — sustained growth above 15% is typically considered strong.	-8.4%
Net Income Growth (YoY) ?Year-over-year change in net income. Shows whether profits are growing faster or slower than revenue — a key indicator of improving or deteriorating quality.	-23.2%
Piotroski F-Score ?Score from 0–9 measuring financial strength across profitability, leverage, and efficiency signals. 8–9 = strong, 0–2 = distressed.	5 / 9
Altman Z-Score ?Bankruptcy risk model. Above 2.99 = safe zone, 1.81–2.99 = grey zone, below 1.81 = distress signal. Most useful for manufacturing companies.	1.78

Community Sentiment

Not enough ratings yet.
Be the first to rate this company below.

Quarterly Financials

Metric	Q4 '25	Q2 '25	Q2 '25	Q4 '25	Q2 '25	Q2 '24	Q4 '25	Q2 '24	Q2 '23	Q4 '24	Q2 '23	Q2 '22
Revenue ?Total quarterly sales from primary business operations.	—	65.41B	69.23B	—	74.46B	72.48B	—	74.58B	86.96B	—	100.06B	84.20B
Gross Profit ?Quarterly revenue minus cost of goods sold.	—	—	—	—	—	—	—	—	—	—	—	—
Operating Income ?Quarterly profit from core operations before interest and taxes (EBIT).	—	5.98B	8.96B	—	7.40B	11.04B	—	5.35B	14.35B	—	26.16B	10.78B
Net Income ?Quarterly bottom-line profit after all expenses and taxes.	—	3.64B	4.88B	—	3.65B	7.44B	—	3.15B	8.77B	—	18.24B	7.32B
FCF ?Quarterly free cash flow: operating cash minus capital expenditures.	21.65B	11.94B	9.28B	27.85B	13.51B	13.33B	24.90B	15.13B	14.16B	34.94B	18.66B	14.82B

Revenue & Free Cash Flow

Market Cap vs. DCF Fair Value Band

Shaded region = bear-to-bull DCF range. Line = actual market cap.

Want to track SHEL in your own watchlist?

Create a free account to save companies, refresh fundamentals on demand, and record your investment thesis.

Get stocks like SHEL in your inbox every Sunday

11 sector-leading stocks delivered to your inbox every Sunday. Free.

No spam. Unsubscribe anytime.

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Scores and valuations are derived from SEC filings and publicly available data. Always do your own research before making investment decisions.