What Can We Learn From Shell plc (SHEL)’s Valuation Ratios?


Shell plc (NYSE:SHEL) finished Thursday with an addition of $0.11 to close at $56.67, an upside of 0.19 percent. An average of 3,254,280 shares of common stock have been traded in the last five days. There was a fall of -$0.93 in the past week, and it reached a new high 33 times over the past 12 months. The last 20 days have seen an average of 4,595,510 shares traded, while the 50-day average volume stands at 4,535,372.

SHEL stock has decreased by -1.65% in the last month. The company shares reached their 1-month lowest point of $54.40 on 12/16/22. With the stock rallying to its 52-week high on 06/07/22, shares of the company touched a low of $43.25 and a high of $61.67 in 52 weeks. It has reached a new high 32 times so far this year and achieved 30.58% or $13.27 in price. In spite of this, the price is down -8.12% from the 52-week high.

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Valuation Metrics

Shell plc (SHEL) has a trailing price-to-earnings (P/E) ratio of 4.95. The stock’s beta is 0.69. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.53, the price-to-book (PB) ratio at 1.11, and the price-to-cash flow ratio at 8.04.

The company has a payout ratio of 17.20%. The company’s most recent quarterly dividend payment was $0.50 a share, without any change from last year. Its latest increase dividend $0.02 reported on Thursday May 5 2022.

Financial Health

The quick ratio of Shell plc for the three months ended September 29 was 1.10, and the current ratio was 1.40, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.40 and a total debt to equity ratio of 0.44 for the quarter ending September 29. Shell plc’s EBITDA margin for the year ending September 29 is 18.83%, while its operating margin for the same period stands at 15.70%. Its gross profit as reported stood at $72.5 billion compared to revenue of $272.66 billion.

Earnings Surprise

For the three-month period that ended September 29, Shell plc had $1.25 billion in cash. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $20.1 billion in the quarter, while revenues were grew 207.86%. The analyst consensus anticipated Shell plc’s latest quarter earnings to come in at $2.73 per share, but it turned out to be $2.58, a -5.50% surprise. For the quarter, EBITDA amounted to $18.29 billion.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Shell plc (SHEL) price momentum. RSI 9-day as of the close on 29 December was 49.61%, suggesting the stock is Neutral, with historical volatility in this time frame at 26.05%.

As of today, SHEL’s price is $57.12 -1.61% or -$0.93 from its 5-day moving average. SHEL is currently trading -3.08% lower than its 20-day SMA and +9.04% higher than its 100-day SMA. However, the stock’s current price level is +10.17% above the SMA50 and +12.55% above the SMA200.

The stochastic %K and %D were 72.34% and 82.93%, respectively, and the average true range (ATR) was 1.16. With the 14-day stochastic at 62.36% and the average true range at 1.22, the RSI (14) stands at 50.99%. The stock has reached 0.39 on the 9-day MACD Oscillator while the 14-day reading was at 0.46.

Analyst Ratings

Goldman downgraded Shell plc (NYSE: SHEL) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as a Buy.

What is SHEL’s price target for the next 12 months?

Analysts predict a range of price targets between $60.00 and $76.70, with a median target of $69.00. Taking a look at these predictions, the average price target given by analysts for Shell plc (SHEL) stock is $68.47.


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