# Shell plc (SHEL.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Energy / Oil, Gas & Consumable Fuels. Price 3506p, market value 200.6 billionp.

## Valuation
- **P/E (trailing): 10.5×** (5-yr avg 762.3×, 3-yr avg 924.9×). Shell plc trades at 10.5× trailing earnings, well below its own five-year average of 762.3×: cheap by its own standards. The Energy median in the September 2026 study was 16.8×. Forward P/E is 9.9×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.47**. A PEG of 0.47 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.9×**. Each dollar of revenue is priced at 0.9×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.5×**. The shares trade at 1.5× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 5.1×**. Enterprise value is 5.1× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 10.9%** (5-yr avg 0.2%). Free cash flow equals 10.9% of the market value, above its five-year average of 0.2%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 9.5%**. The inverse of the P/E: 9.5% of the price is earned each year.

## Profitability
- **Gross margin: 17.9%**. Shell plc keeps 17.9% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 13.4%**. 13.4% of revenue is left after running the business.
- **Net margin: 6.7%**. 6.7% of each dollar of sales reaches the bottom line.
- **Return on equity: 10.4%**. 10.4% on shareholders' equity is solid.
- **Return on invested capital: 10.4%**. Return on all capital, debt included, is 10.4%.
- **Return on assets: 7.0%**. Each dollar of assets produces 7.0% of profit.

## Growth
- **Revenue growth (1 yr): -4.2%** (3-yr -10.6%/yr, 5-yr 8.6%/yr). Revenue fell 4.2% over the last year, against 8.6% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 20.9%** (3-yr -18.8%/yr). Earnings per share rose 20.9%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): -21.4%/yr**. Free cash flow has compounded at -21.4% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.60**. Debt is 0.60 times equity, moderate leverage.
- **Net debt / EBITDA: 1.1×**. It would take 1.1 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 7.7×**. Operating profit covers interest 7.7× over, a safe margin.
- **Current ratio: 1.30** (quick 1.03). Current assets cover the next year's liabilities 1.30 times.
- **Altman Z-score: 2.37**. A Z-score of 2.37 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 3.32%** (1p per share, trailing). Shell plc yields 3.32%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 47%** (28% of free cash flow). 47% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 4**. 4 straight years of increases.
- **Dividend growth (5 yr): 7.9%/yr** (1-yr 0.6%). The dividend has grown 7.9% a year over five years.
- **Shareholder yield: 8.5%**. Dividends plus net buybacks return 8.5% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (17 analysts). 17 analysts cover Shell plc; the consensus is buy, with an average price target of 3772p (+8% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 31.5%** (YTD 26.0%, 3-mo 6.5%). The shares are up 31.5% over twelve months including dividends.
- **From 52-week high: -6.7%** (37.3% above the low). Trading 7% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 62**. An RSI of 62 is neutral.
- **Beta (1 yr): 0.12** (volatility 23%). Beta of 0.12 against the FTSE All-Share: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=SHEL.L · Page: https://foliofundamentals.com/stocks/shel.l

Not investment advice.