One-glance verdict
Undervalued
$318.26 our estimate vs market $105.64
Wall Street consensus: $104.63 (-67.1% lower than our fair-value estimate)
67% below our estimate, below the bear case
Fundamentals snapshot
Shell plc
SHEL · NYQ · Energy · Oil & Gas Integrated
Current price
$105.64
52-week range
$68.62 - $105.87
Market cap
$300.47B
Balance sheet
Watch
5.82x Adequate
Net debt $41.70B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Returns 14.3% on equity, ahead of 60% of its peers.
- Reward Free cash flow was positive in 4/10 years.
- Risk Stock trades 13.3% above its 5-year average P/E.
- Risk Net debt grew 5.3% over 3 years.
What this company does
Shell plc
Shell is a giant energy company that sells oil, gas, and chemicals, with most of its money coming from selling natural gas and oil products. This matters because the price of oil and gas directly affects how much money Shell makes, like how much profit (the money left after paying for everything) they can achieve from each sale.
How the company got here
Shell's story began in 1907 with the merger of two companies: the Royal Dutch Petroleum Company and the "Shell" Transport and Trading Company. The latter's origins trace back to a London business started in the 1830s by Marcus Samuel Sr., who sold seashells. His son, Marcus Samuel Jr., saw potential in importing lamp oil and commissioned the world's first purpose-built oil tanker. The Royal Dutch Petroleum Company was founded in the Netherlands in 1890 to develop oil fields. The combined entity, Royal Dutch Shell, quickly became a major player in the global oil industry, even entering the chemicals business in 1929. After operating under a dual-listed structure for over a century, the company unified and simplified its corporate structure in 2022, rebranding as Shell plc.
What it actually does
Shell is a global energy company involved in nearly every aspect of the oil and gas industry. Think of them as a company that finds oil and gas deep underground or under the sea, brings it to the surface, transports it, turns it into useful products like gasoline and plastics, and then sells those products to customers. They also have a growing business in lower-carbon energy solutions. Shell's operations span across more than 70 countries, serving millions of customers daily through its vast network of retail stations and commercial sales.
Integrated Gas
This part of Shell focuses on natural gas. They explore for and extract natural gas, then process it into liquefied natural gas (LNG) – which is natural gas cooled down so it can be shipped more easily – or convert it into other products like gas-to-liquids (GTL) fuels. Shell is a major player in trading and distributing these gas products globally. This segment is crucial because natural gas is a significant energy source, and LNG allows for its transport to markets worldwide.
Upstream
The Upstream segment is where Shell finds and extracts oil and natural gas. This involves exploring for new reserves in various locations, including deep water and conventional fields, as well as unconventional sources like shale. Once extracted, the oil and gas are transported to be processed or sold. This is the foundational part of Shell's business, providing the raw materials for many of its other operations.
Marketing
This segment is all about getting Shell's products to customers. It includes the familiar Shell-branded retail stations where people buy gasoline and other convenience items, as well as electric vehicle charging. Marketing also covers the sale of fuels and lubricants (oils that reduce friction in engines) to commercial and industrial customers in sectors like transportation, manufacturing, and agriculture. They also trade biofuels, which are fuels made from plant or animal matter.
Chemicals and Products
Here, Shell operates manufacturing plants and refineries. Refineries are large industrial facilities that process crude oil into various products like gasoline, diesel, jet fuel, and other oil-based products. The chemicals plants use oil and gas as raw materials to create petrochemicals, which are then used to make plastics, detergents, and other everyday items. These products are then marketed and sold for domestic, industrial, and transport use.
Renewables and Energy Solutions
This is Shell's growing business focused on lower-carbon energy. It includes providing solutions like biofuels, electricity, and hydrogen. They are also involved in electric vehicle charging infrastructure and other initiatives aimed at reducing carbon emissions. This segment represents Shell's efforts to transition towards a more sustainable energy future, offering alternatives to traditional fossil fuels.
What management is betting on now
Shell's current strategy is to deliver more value while reducing emissions. They are focusing on growing their integrated gas and LNG business, and maintaining strong production of oil and natural gas liquids. Management is also repositioning their lower-carbon energy businesses to focus on solutions that offer higher returns. A key challenge is navigating global climate policies and funding the energy transition while ensuring these new ventures meet financial expectations.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $318.26 vs current price $105.64
Wall Street consensus is the average analyst price target: $104.63 (-67.1% lower than our fair-value estimate).
Our most-likely fair value is $318.26 a share — about 201.3% above today's price of $105.64, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $41.7B. Interest coverage 5.8x.
Net debt
$41.70B
Interest coverage
5.82x
Shell plc's profit covers its interest bill about 5.8 times over.
Watch
Worse cushion
Baseline
Better cushion
SHEL
BASELINE
Shell plc
Total debt $73.08B Interest coverage 5.82x This is the baseline the peer rows are being compared against.
Total debt $42.37B Interest coverage 56.28x +867% vs SHEL Carries about 9.7x more debt cushion than SHEL.
Total debt $37.08B Interest coverage 13.70x +136% vs SHEL Carries about 2.4x more debt cushion than SHEL.
Total debt $62.92B Interest coverage 7.79x +34% vs SHEL Carries about 1.3x more debt cushion than SHEL.
What you should know
The case for and against SHEL
3 Rewards
3 Risks
Rewards
-
Returns 14.3% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 4/10 years.
-
Trades at 11.7x P/E vs peer median 21.8x (46.6% cheaper).
Risks
-
Stock trades 13.3% above its 5-year average P/E.
-
Net debt grew 5.3% over 3 years.
-
Insider ownership is only 0.0% (peer median: 2.4%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
11.66x
Forward P/E
10.02x
P/B
1.63x
P/S
1.01x
EV/EBITDA
5.75x
PEG ratio
1.74x
Profitability
How much profit each dollar creates
Gross margin
26.1%
Operating margin
16.7%
Net margin
8.8%
ROE
14.3%
ROA
6.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.40x
Current ratio
1.44x
Quick ratio
0.98x
Total debt
$73.08B
Total cash
$31.37B
Growth
How the business has been compounding
Revenue TTM
$296.60B
Revenue 5Y CAGR
-11.2%
EPS TTM
9.06
EPS 5Y CAGR
-19.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$42.86B
Free CF TTM
$23.92B
FCF margin
8.1%
Dividend
Shareholder payout
Yield
3.0%
Payout ratio
32.6%
Last ex-div date
2026-08-14