NYSE · Energy

Shell plc

SHEL · Oil & Gas Integrated

$78.81

▼ -1.57 (-1.95%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

C⤢

Gross Profit Margin 19.3%

Operating Margin 14.9%

Net Income Margin 8.2%

Fin. Health

D⤢

Years to Pay Off Debt 13.3 yrs

Working Capital vs Long-Term Debt -$14.7B

Working Capital $25.7B

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 1.26x

Cash Flow

C⤢

Free Cash Flow $2.3B

CapEx % of Net Income 66.0%

Owner Earnings $15.2B

Profitability

Gross Profit Margin 19.3%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 14.9%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 8.2%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 13.3 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$14.7B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $25.7B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $2.3B

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 66.0%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $15.2B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Shell plc

Shell plc operates as an energy and petrochemical company in Europe, Asia, Oceania, Africa, the United States, and other parts of the Americas. It operates through the following segments: Integrated Gas, Upstream, Marketing, Chemicals and Products, and Renewables and Energy Solutions. The company explores for and extracts natural gas to produce liquefied natural gas or convert it into gas-to-liquids (GTL) fuels and other products; explores for and extracts crude oil, natural gas, and natural gas liquids; and operates marketing and transportation of oil, gas, and liquids, supported by the infrastructure required to deliver them to market or to process them within Shell's chemical manufacturing plants and refineries. It is also involved in marketing, which includes mobility, lubricants, and sectors focused on decarbonization; operates a retail network, including electric vehicle charging, convenience retail, and the wholesale commercial fuels business for transport and industry; sells products for road transport and machinery in manufacturing, mining, power generation, agriculture, and construction; and provides low-carbon energy solutions, such as biofuels, to a broad range of commercial customers, including those in the aviation, marine, and agriculture sectors. In addition, the company offers chemicals and products, including chemicals manufacturing plants with their own marketing network, and refineries that turn crude oil and other feedstocks into a range of oil products, which are moved and marketed around the world for domestic, industrial, and transport use; and operates a pipeline business, trading, and optimization of crude oil, oil products, and petrochemicals. The company was formerly known as Royal Dutch Shell plc and changed its name to Shell plc in January 2022. Shell plc was founded in 1897 and is headquartered in London, United Kingdom.

Market Data

Market Cap $218.5B

Enterprise Value $285.4B

P/E (TTM) 12.28

Dividend Yield 1.84%

Exchange NYSE

Key Margins

Gross Profit 19.3%

Operating Margin 14.9%

Net Margin 8.2%

Company Info

Sector Energy

Industry Oil & Gas Integrated

Employees 84000

Country United Kingdom

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Shell plc at $78.81.

The business passes 5 of 7 of Graham's defensive criteria — adequate but not exceptional.

At $78.81, the stock trades at a 48% premium to its Graham Number of $53.08. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: This stock is better suited for Graham's Enterprising investor — one willing to devote time and skill to security selection.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q3 2024
Gross Profit %	19.3%▲	11.4%•	N/A
Operating Margin %	14.9%▲	4.9%•	N/A
Net Income %	8.2%▲	6.5%•	N/A
Diluted EPS	2.00▲	1.42•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$380.6B	$370.4B	N/A
Total Debt	$75.6B▲	$75.6B•	N/A
Working Capital	$25.7B▲	$24.8B•	N/A
Years to Pay Debt	13.28	18.30	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$2.3B▼	$4.2B•	N/A
Owner Earnings	$15.2B	$15.1B	N/A
CapEx % of Net Income	66.0%	127.0%	N/A

Income Statement

	2026	2025	2024
Tax Effect Of Unusual Items	22,580	1,770,622
Tax Rate For Calcs	0	0
Normalized EBITDA	16,480,000	9,419,000
Total Unusual Items	59,000	4,492,000
Total Unusual Items Excluding Goodwill	59,000	4,492,000
Net Income From Continuing Operation Net Minority Interest	5,694,000	4,134,000
Reconciled Depreciation	5,738,000	5,750,000
Reconciled Cost Of Revenue	56,257,000	56,813,000
EBITDA	16,539,000	13,911,000
EBIT	10,801,000	8,161,000
Net Interest Income	-1,101,000	-811,000
Interest Expense	1,473,000	1,263,000
Interest Income	372,000	452,000
Normalized Income	5,657,580	1,412,622
Net Income From Continuing And Discontinued Operation	5,694,000	4,134,000
Total Expenses	59,325,000	60,934,000
Diluted Average Shares	2,851,850	2,953,000
Basic Average Shares	2,826,950	2,922,900
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	5,694,000	4,134,000
Net Income Common Stockholders	5,694,000	4,134,000
Net Income	5,694,000	4,134,000
Minority Interests	-64,000	-46,000
Net Income Including Noncontrolling Interests	5,758,000	4,179,000
Net Income Continuous Operations	5,758,000	4,179,000
Tax Provision	3,570,000	2,719,000
Pretax Income	9,328,000	6,898,000
Other Non Operating Income Expenses	70,000	287,000
Special Income Charges	59,000	4,422,000
Other Special Charges	-64,000	-2,121,000
Write Off			338,000
Impairment Of Capital Assets	5,000		338,000
Net Non Operating Interest Income Expense	-1,101,000	-811,000
Interest Expense Non Operating	1,473,000	1,263,000
Interest Income Non Operating	372,000	452,000
Operating Income	10,366,000	3,159,000
Operating Expense	3,068,000	4,121,000
Other Operating Expenses	98,000	391,000
Research And Development	167,000	298,000
Selling General And Administration	2,803,000	3,432,000
General And Administrative Expense	2,803,000	3,432,000
Gross Profit	13,434,000	7,280,000
Cost Of Revenue	56,257,000	56,813,000
Total Revenue	69,691,000	64,093,000
Operating Revenue	69,691,000	64,093,000

Balance Sheet

	2026	2025	2024
Treasury Shares Number	30,082	28,745
Ordinary Shares Number	5,608,474	5,689,892
Share Issued	5,638,556	5,718,636
Net Debt	21,934,000	17,080,000	10,540,000
Total Debt	75,644,000	75,643,000
Tangible Book Value	147,521,000	147,720,000
Invested Capital	218,634,000	221,102,000
Working Capital	25,689,000	24,758,000
Net Tangible Assets	147,521,000	147,720,000
Capital Lease Obligations	30,593,000	28,933,000	28,702,000
Common Stock Equity	173,583,000	174,392,000
Total Capitalization	213,938,000	216,585,000
Total Equity Gross Minority Interest	174,601,000	175,319,000
Minority Interest	1,018,000	927,000
Stockholders Equity	173,583,000	174,392,000
Other Equity Interest	691,000	1,359,000
Treasury Stock	231,000	847,000
Retained Earnings	153,451,000	153,528,000
Additional Paid In Capital	464,000	457,000
Capital Stock	471,000	477,000
Common Stock	471,000	477,000
Total Liabilities Net Minority Interest	205,997,000	195,031,000
Total Non Current Liabilities Net Minority Interest	112,524,000	112,616,000
Other Non Current Liabilities	1,000
Derivative Product Liabilities	1,161,000	1,108,000
Non Current Pension And Other Postretirement Benefit Plans	6,876,000	7,136,000
Tradeand Other Payables Non Current	5,119,000	4,463,000
Non Current Deferred Taxes Liabilities	11,884,000	11,983,000
Long Term Debt And Capital Lease Obligation	65,584,000	66,515,000
Long Term Capital Lease Obligation	25,229,000	24,322,000	23,992,000
Long Term Debt	40,355,000	42,193,000	41,456,000
Long Term Provisions	21,899,000	21,411,000
Current Liabilities	93,473,000	82,415,000
Other Current Liabilities
Current Debt And Capital Lease Obligation	10,060,000	9,128,000
Current Capital Lease Obligation	5,364,000	4,611,000	4,710,000
Current Debt	4,696,000	4,517,000	6,920,000
Current Provisions	3,963,000	5,884,000
Payables	68,171,000	49,996,000
Other Payable		15,846,000	16,248,000
Total Tax Payable	3,883,000	6,010,000
Accounts Payable	64,288,000	28,140,000
Total Assets	380,598,000	370,350,000
Total Non Current Assets	261,436,000	263,177,000
Other Non Current Assets
Defined Pension Benefit	5,192,000	5,052,000
Non Current Deferred Taxes Assets	7,474,000	8,173,000
Financial Assets	573,000	619,000
Investmentin Financial Assets	1,554,000	1,557,000
Held To Maturity Securities		39,000	37,000
Available For Sale Securities	1,554,000	1,478,000
Financial Assets Designatedas Fair Value Through Profitor Loss Total		40,000	97,000
Long Term Equity Investment	27,579,000	27,775,000
Investmentsin Joint Venturesat Cost			15,783,000
Investmentsin Associatesat Cost			7,662,000
Goodwill And Other Intangible Assets	26,062,000	26,672,000
Other Intangible Assets	10,873,000	11,010,000
Goodwill	15,189,000	15,662,000
Net PPE	185,708,000	185,077,000
Accumulated Depreciation		-259,861,000	-245,527,000
Gross PPE		444,938,000	430,746,000
Other Properties		161,389,000	150,507,000
Properties		283,549,000	280,239,000
Current Assets	119,162,000	107,173,000
Other Current Assets	1,000
Hedging Assets Current	11,086,000	9,114,000
Assets Held For Sale Current	2,367,000	1,030,000
Restricted Cash		586,000	1,274,000
Prepaid Assets		4,322,000	5,713,000
Inventory	28,700,000	22,216,000
Other Inventories		2,699,000	1,602,000
Finished Goods		17,925,000	20,211,000
Raw Materials		1,592,000	1,613,000
Other Receivables		7,996,000	8,526,000
Taxes Receivable		2,080,000	391,000
Accounts Receivable	53,891,000	30,005,000
Allowance For Doubtful Accounts Receivable		-1,052,000	-527,000
Gross Accounts Receivable		31,057,000	31,568,000
Cash Cash Equivalents And Short Term Investments	23,117,000	29,630,000
Cash And Cash Equivalents	23,117,000	29,630,000

Cash Flow

	2026	2025	2024
Free Cash Flow	2,305,000	4,189,000
Repurchase Of Capital Stock	-3,182,000	-3,425,000
Repayment Of Debt	-2,794,000	-2,416,000
Issuance Of Debt	0	2,425,000
Issuance Of Capital Stock	-423,000	-373,000
Capital Expenditure	-3,757,000	-5,249,000
End Cash Position	23,117,000	30,216,000
Other Cash Adjustment Outside Changein Cash
Beginning Cash Position	30,216,000	33,053,000
Effect Of Exchange Rate Changes	-205,000	-36,000
Changes In Cash	-6,894,000	-2,801,000
Financing Cash Flow	-9,820,000	-7,050,000
Net Other Financing Charges	-285,000	95,000
Interest Paid Cff	-1,037,000	-1,197,000
Cash Dividends Paid	-2,100,000	-2,069,000
Common Stock Dividend Paid	-2,100,000	-2,069,000
Net Common Stock Issuance	-3,605,000	-3,798,000
Common Stock Payments	-3,182,000	-3,425,000
Common Stock Issuance	-423,000	-373,000
Net Issuance Payments Of Debt	-2,784,000	-53,000
Net Short Term Debt Issuance	10,000	-62,000
Net Long Term Debt Issuance	-2,794,000	9,000
Long Term Debt Payments	-2,794,000	-2,416,000
Long Term Debt Issuance	0	2,425,000
Investing Cash Flow	-3,136,000	-5,189,000
Net Other Investing Changes	352,000	302,000
Interest Received Cfi	362,000	472,000
Net Investment Purchase And Sale	19,000	-36,000
Sale Of Investment	39,000	6,000
Purchase Of Investment	-20,000	-42,000
Net Business Purchase And Sale	-384,000	-577,000
Sale Of Business	42,000	148,000
Purchase Of Business	-426,000	-725,000
Net PPE Purchase And Sale	272,000	-101,000
Sale Of PPE	272,000	-101,000	493,000
Purchase Of PPE
Capital Expenditure Reported	-3,757,000	-5,249,000
Operating Cash Flow	6,062,000	9,438,000
Taxes Refund Paid	-2,301,000	-2,639,000
Dividend Received Cfo	595,000	988,000
Change In Working Capital	-11,178,000	1,275,000
Change In Payable	5,912,000	-109,000
Change In Inventory	-6,686,000	738,000
Change In Receivables	-10,404,000	646,000
Other Non Cash Items	1,449,000	-1,363,000
Depreciation And Amortization	5,738,000	5,750,000
Depreciation	5,738,000	5,750,000
Pension And Employee Benefit Expense	-80,000	-162,000
Gain Loss On Investment Securities	2,411,000	-2,448,000
Net Income From Continuing Operations	9,328,000	6,898,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $69.2B ▲ $69.7B +0.7%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 18.4% ▲ 19.3% +0.9pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 15.0% ▲ 14.9% -0.1pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 6.9% ▲ 8.2% +1.3pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$69.7B/qtr (≈$278.8B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

1.27x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$2.3B

vs Positive

Operating Cash Flow

$6.1B

Latest quarter · Buffett's cash reality check

ROIC

2.9%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

1.3x

Net Assets: $174.6B

Asset Context — Oil & Gas Integrated

Asset-heavy businesses (energy, industrials, utilities, REITs) have physical assets with real replacement value — book value and Net Assets are more meaningful here than for technology or consumer brand companies. A low Market Cap / Net Assets ratio may indicate genuine undervaluation.

Peers & Industry Comparison

Oil & Gas Integrated — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
SHEL	$78.81	$218.5B	12.28	19.3%	8.2%	$69.7B
XOM Exxon Mobil Corporation	$137.81	$571.2B	23.2	29.8%	7.8%	$326.0B
CVX Chevron Corporation	$173.63	$345.8B	30.2	42.4%	5.9%	$185.7B
BP BP p.l.c.	$39.10	$100.7B	31.8	28.9%	1.7%	$193.0B
TTE TotalEnergies SE	$80.43	$178.9B	11.9	38.4%	8.2%	$184.0B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.00%

Low — management has little skin in the game

Return on Equity (ROE)

3.3%

Weak — poor returns on equity

Return on Assets (ROA)

1.5%

Poor — assets are not generating adequate returns

Share Buybacks (Latest Year)

$13.9B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+0.0% YoY

Debt is roughly stable

Leadership Team

Wael Sawan

CEO & Director

Age 51

Pay: $6,229,972

0.109% of net income

Sinead Gorman

CFO & Director

Age 48

Pay: $4,094,289

0.072% of net income

Graham Robert van't Hoff

Executive Vice President of Chemicals

Age 63

Brian Paul Eggleston

Executive Vice President of Finance Downstream

Roland Alexander Ilube

Senior Vice President of Finance Mobility

Top Institutional Holders

Institution	% Owned	Shares
FMR, LLC	3.48%	97,617,838
Fisher Asset Management, LLC	0.98%	27,474,710
Dimensional Fund Advisors LP	0.88%	24,690,100
Price (T.Rowe) Associates Inc	0.38%	10,568,968
Morgan Stanley	0.35%	9,673,916
Bank of America Corporation	0.27%	7,562,727
Franklin Resources, Inc.	0.26%	7,322,962
Arrowstreet Capital, Limited Partnership	0.26%	7,196,400

Risk Analysis

Beta (Market Risk)

-0.25

Defensive — moves inversely to the market

Short Interest

1.9% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.43x

Conservative balance sheet — low financial risk

Current Ratio

1.27x

Adequate liquidity

52-Week Price Range

Low: $67.25 Current: $78.81 High: $94.90

Currently at 42% of 52-week range

Shell plc

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry Comparison

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis