SHEL Profitability Analysis: Past Growth, Margins, Return on Capital, Free Cash Flow, and more - Shell PLC - Alpha Spread
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Shell PLC
NYSE:SHEL

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Shell PLC
NYSE:SHEL
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Price: 67.91 USD 0.68%
Market Cap: 213.6B USD
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Profitability Summary

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

Past Growth

To be successful and remain in business, both growth and profitability are important and necessary. Net Income growth is often seen as a sign of a company's efficiency from an operational standpoint, but is influenced heavily by a company's goals and challenges and should therefore be assessed in conjunction with other metrics like revenue and operating income growth.

Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Earnings Waterfall
Shell PLC

Revenue
302B USD
Cost of Revenue
-224.8B USD
Gross Profit
77.3B USD
Operating Expenses
-39.5B USD
Operating Income
37.8B USD
Other Expenses
-19.4B USD
Net Income
18.4B USD

Margins Comparison
Shell PLC Competitors

Country Company Market Cap Gross
Margin
Operating
Margin
Net
Margin
UK
Shell PLC
NYSE:SHEL
213.3B USD
26%
13%
6%
SA
Saudi Arabian Oil Co
SAU:2222
6.7T SAR
57%
45%
23%
US
Exxon Mobil Corp
NYSE:XOM
500.2B USD
30%
13%
10%
US
Chevron Corp
NYSE:CVX
259B USD
39%
12%
10%
NL
Royal Dutch Shell PLC
OTC:RYDAF
210.9B USD
26%
13%
6%
CN
PetroChina Co Ltd
SSE:601857
1.4T CNY
14%
9%
5%
FR
TotalEnergies SE
NYSE:TTE
156.9B USD
35%
16%
10%
CN
China Petroleum & Chemical Corp
SSE:600028
753.6B CNY
7%
3%
2%
UK
BP PLC
NYSE:BP
89.2B USD
28%
11%
4%
BR
Petroleo Brasileiro SA Petrobras
BOVESPA:PETR4
481.7B BRL
47%
36%
16%
NO
Equinor ASA
NYSE:EQNR
73B USD
52%
31%
9%
Country UK
Market Cap 213.3B USD
Gross Margin
26%
Operating Margin
13%
Net Margin
6%
Country SA
Market Cap 6.7T SAR
Gross Margin
57%
Operating Margin
45%
Net Margin
23%
Country US
Market Cap 500.2B USD
Gross Margin
30%
Operating Margin
13%
Net Margin
10%
Country US
Market Cap 259B USD
Gross Margin
39%
Operating Margin
12%
Net Margin
10%
Country NL
Market Cap 210.9B USD
Gross Margin
26%
Operating Margin
13%
Net Margin
6%
Country CN
Market Cap 1.4T CNY
Gross Margin
14%
Operating Margin
9%
Net Margin
5%
Country FR
Market Cap 156.9B USD
Gross Margin
35%
Operating Margin
16%
Net Margin
10%
Country CN
Market Cap 753.6B CNY
Gross Margin
7%
Operating Margin
3%
Net Margin
2%
Country UK
Market Cap 89.2B USD
Gross Margin
28%
Operating Margin
11%
Net Margin
4%
Country BR
Market Cap 481.7B BRL
Gross Margin
47%
Operating Margin
36%
Net Margin
16%
Country NO
Market Cap 73B USD
Gross Margin
52%
Operating Margin
31%
Net Margin
9%

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

Return on Capital Comparison
Shell PLC Competitors

Country Company Market Cap ROE ROA ROCE ROIC
UK
Shell PLC
NYSE:SHEL
213.3B USD
10%
5%
12%
8%
SA
Saudi Arabian Oil Co
SAU:2222
6.7T SAR
29%
18%
39%
22%
US
Exxon Mobil Corp
NYSE:XOM
500.2B USD
15%
8%
13%
10%
US
Chevron Corp
NYSE:CVX
259B USD
12%
7%
10%
7%
NL
Royal Dutch Shell PLC
OTC:RYDAF
210.9B USD
10%
5%
12%
8%
CN
PetroChina Co Ltd
SSE:601857
1.4T CNY
11%
6%
13%
9%
FR
TotalEnergies SE
NYSE:TTE
156.9B USD
18%
7%
17%
12%
CN
China Petroleum & Chemical Corp
SSE:600028
753.6B CNY
8%
3%
6%
4%
UK
BP PLC
NYSE:BP
89.2B USD
11%
3%
11%
7%
BR
Petroleo Brasileiro SA Petrobras
BOVESPA:PETR4
481.7B BRL
21%
8%
21%
14%
NO
Equinor ASA
NYSE:EQNR
73B USD
21%
7%
32%
11%
Country UK
Market Cap 213.3B USD
ROE
10%
ROA
5%
ROCE
12%
ROIC
8%
Country SA
Market Cap 6.7T SAR
ROE
29%
ROA
18%
ROCE
39%
ROIC
22%
Country US
Market Cap 500.2B USD
ROE
15%
ROA
8%
ROCE
13%
ROIC
10%
Country US
Market Cap 259B USD
ROE
12%
ROA
7%
ROCE
10%
ROIC
7%
Country NL
Market Cap 210.9B USD
ROE
10%
ROA
5%
ROCE
12%
ROIC
8%
Country CN
Market Cap 1.4T CNY
ROE
11%
ROA
6%
ROCE
13%
ROIC
9%
Country FR
Market Cap 156.9B USD
ROE
18%
ROA
7%
ROCE
17%
ROIC
12%
Country CN
Market Cap 753.6B CNY
ROE
8%
ROA
3%
ROCE
6%
ROIC
4%
Country UK
Market Cap 89.2B USD
ROE
11%
ROA
3%
ROCE
11%
ROIC
7%
Country BR
Market Cap 481.7B BRL
ROE
21%
ROA
8%
ROCE
21%
ROIC
14%
Country NO
Market Cap 73B USD
ROE
21%
ROA
7%
ROCE
32%
ROIC
11%

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.

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