NYSE:RDS.B

Stock Analysis Report

Executive Summary

Royal Dutch Shell plc operates as an energy and petrochemical company worldwide.

Snowflake

Fundamentals

6 star dividend payer with mediocre balance sheet.


Similar Companies

Share Price & News

How has Royal Dutch Shell's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.3%

NYSE:RDS.B

2.9%

US Oil and Gas

2.9%

US Market


1 Year Return

-16.1%

NYSE:RDS.B

-22.7%

US Oil and Gas

0.2%

US Market

RDS.B outperformed the Oil and Gas industry which returned -22.7% over the past year.

RDS.B underperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

RDS.BIndustryMarket
7 Day-0.3%2.9%2.9%
30 Day-12.3%-7.9%-2.3%
90 Day-11.1%-6.6%3.1%
1 Year-10.8%-16.1%-19.9%-22.7%2.4%0.2%
3 Year28.8%7.4%-6.3%-14.7%41.7%32.4%
5 Year-8.7%-33.3%-33.0%-42.0%55.1%37.9%

Price Volatility Vs. Market

How volatile is Royal Dutch Shell's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Royal Dutch Shell undervalued based on future cash flows and its price relative to the stock market?

35%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Royal Dutch Shell's share price is below the future cash flow value, and at a moderate discount (> 20%).

Royal Dutch Shell's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Royal Dutch Shell is overvalued based on earnings compared to the US Oil and Gas industry average.

Royal Dutch Shell is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Royal Dutch Shell is poor value based on expected growth next year.


Price Based on Value of Assets

Royal Dutch Shell is overvalued based on assets compared to the US Oil and Gas industry average.


Next Steps

Future Growth

How is Royal Dutch Shell expected to perform in the next 1 to 3 years based on estimates from 21 analysts?

7.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Royal Dutch Shell's revenue is expected to grow by 1.7% yearly, however this is not considered high growth (20% yearly).

Royal Dutch Shell's earnings are expected to grow by 7.7% yearly, however this is not considered high growth (20% yearly).

Royal Dutch Shell's revenue growth is positive but not above the United States of America market average.

Royal Dutch Shell's earnings growth is positive but not above the United States of America market average.

Royal Dutch Shell's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Royal Dutch Shell is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Royal Dutch Shell performed over the past 5 years?

18.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Royal Dutch Shell's year on year earnings growth rate has been positive over the past 5 years.

Royal Dutch Shell's 1-year earnings growth is less than its 5-year average (3.1% vs 18.7%)

Royal Dutch Shell's earnings growth has not exceeded the US Oil and Gas industry average in the past year (3.1% vs 22.6%).


Return on Equity

Royal Dutch Shell has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Royal Dutch Shell used its assets less efficiently than the US Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

Royal Dutch Shell has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Royal Dutch Shell's financial position?


Financial Position Analysis

Royal Dutch Shell is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Royal Dutch Shell's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Royal Dutch Shell's level of debt (40.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (20.9% vs 40.1% today).

Debt is well covered by operating cash flow (68.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.2x debt.


Next Steps

Dividend

What is Royal Dutch Shell's current dividend yield, its reliability and sustainability?

6.72%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Royal Dutch Shell's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Royal Dutch Shell's dividend is above the markets top 25% of dividend payers in United States of America (3.85%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.6x coverage).


Next Steps

Management

What is the CEO of Royal Dutch Shell's salary, the management and board of directors tenure and is there insider trading?

5.6yrs

Average management tenure


CEO

Ben Van Beurden (61yo)

5.6yrs

Tenure

US$20,137,000

Compensation

Mr. Ben van Beurden has been the Chief Executive Officer of Royal Dutch Shell plc since January 1, 2014. Mr. van Beurden served as Downstream Director of Royal Dutch Shell plc since January 1, 2013 until S ...


CEO Compensation Analysis

Ben's remuneration is higher than average for companies of similar size in United States of America.

Ben's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

5.6yrs

Average Tenure

55yo

Average Age

The average tenure for the Royal Dutch Shell management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.6yrs

Average Tenure

65yo

Average Age

The tenure for the Royal Dutch Shell board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Wai Kiew Loh

    Head of global Shell Marine Products Business

    • Tenure: 13.8yrs
  • Ann Pickard (64yo)

    Executive Vice President of Arctic - Upstream Americas

    • Tenure: 13.9yrs
  • Russell Caplan (72yo)

    Chairman of Australian Unit

    • Tenure: 13.5yrs
  • Ben Van Beurden (61yo)

    CEO & Director

    • Tenure: 5.6yrs
    • Compensation: US$20.14m
  • Ed Daniels

    Executive Vice President of Strategy & Portfolio

    • Tenure: 5.6yrs
  • Graham Hoff

    Executive Vice President of Chemicals

    • Tenure: 6.6yrs
  • Harry Brekelmans (54yo)

    Projects & Technology Director

    • Tenure: 4.8yrs
  • Donny Ching (55yo)

    Legal Director

    • Tenure: 0.0yrs
  • Ronan Cassidy (52yo)

    Chief Human Resources & Corporate Officer

    • Tenure: 3.6yrs
  • Jessica Uhl (51yo)

    CFO & Executive Director

    • Tenure: 2.4yrs
    • Compensation: US$4.86m

Board Members

  • Chad Holliday (71yo)

    • Tenure: 4.3yrs
    • Compensation: US$925.00k
  • Gerard Kleisterlee (73yo)

    Deputy Chair & Senior Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$223.00k
  • Linda Stuntz (65yo)

    Non-Executive Director

    • Tenure: 8.2yrs
    • Compensation: US$210.00k
  • Ann Godbehere (64yo)

    Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: US$97.00k
  • How Lim

    Executive Chairman of Shell Companies

    • Tenure: 13.9yrs
  • Gerrit Zalm (67yo)

    Non-Executive Director

    • Tenure: 6.6yrs
    • Compensation: US$177.00k
  • Ben Van Beurden (61yo)

    CEO & Director

    • Tenure: 5.6yrs
    • Compensation: US$20.14m
  • Nigel Sheinwald (66yo)

    Non-Executive Director

    • Tenure: 7.1yrs
    • Compensation: US$186.00k
  • Swee Chen Goh (58yo)

    Chairman of Shell Companies in Singapore

    • Tenure: 0.0yrs
  • Jessica Uhl (51yo)

    CFO & Executive Director

    • Tenure: 2.4yrs
    • Compensation: US$4.86m

Company Information

Royal Dutch Shell plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Royal Dutch Shell plc
  • Ticker: RDS.B
  • Exchange: NYSE
  • Founded: 1907
  • Industry: Integrated Oil and Gas
  • Sector: Energy
  • Market Cap: €202.117b
  • Listing Market Cap: €224.276b
  • Shares outstanding: 7.98b
  • Website: https://www.shell.com

Number of Employees


Location

  • Royal Dutch Shell plc
  • Carel van Bylandtlaan 30
  • The Hague
  • Zuid-Holland
  • 2596 HR
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RDSALSE (London Stock Exchange)YesClass A SharesGBGBPJan 2005
RDSASEP (The Stock Exchange Prague Co. Ltd.)YesClass A SharesCZCZKJan 2005
RDSAENXTAM (Euronext Amsterdam)YesClass A SharesNLEURJan 2005
RDSAWBAG (Wiener Boerse AG)YesClass A SharesATEURJan 2005
R6CDB (Deutsche Boerse AG)YesClass A SharesDEEURJan 2005
R6CDBATS-CHIXE (BATS 'Chi-X Europe')YesClass A SharesGBEURJan 2005
RDSALBATS-CHIXE (BATS 'Chi-X Europe')YesClass A SharesGBGBPJan 2005
RDSAABATS-CHIXE (BATS 'Chi-X Europe')YesClass A SharesGBEURJan 2005
R6CXTRA (XETRA Trading Platform)YesClass A SharesDEEURJan 2005
RYDA.FOTCPK (Pink Sheets LLC)YesClass A SharesUSUSDJan 2005
RDSASWX (SIX Swiss Exchange)YesClass A SharesCHCHFJan 2005
0LN9LSE (London Stock Exchange)YesClass A SharesGBEURJan 2005
R6C2DB (Deutsche Boerse AG)SPON ADR BDEEURJul 2005
RDS.ANYSE (New York Stock Exchange)SPONS ADR AUSUSDJul 2005
RDS.BNYSE (New York Stock Exchange)SPON ADR BUSUSDJul 2005
RDS BBMV (Bolsa Mexicana de Valores)SPON ADR BMXMXNJul 2005
RDS ABMV (Bolsa Mexicana de Valores)SPONS ADR AMXMXNJul 2005
R6C3XTRA (XETRA Trading Platform)Class B SharesDEEURJul 2005
RDSBLBATS-CHIXE (BATS 'Chi-X Europe')Class B SharesGBGBPJul 2005
RDSBLSE (London Stock Exchange)Class B SharesGBGBPJul 2005
RDSBABATS-CHIXE (BATS 'Chi-X Europe')Class B SharesGBEURJul 2005
R6C1DB (Deutsche Boerse AG)SPONS ADR ADEEURJul 2005
R6C3DB (Deutsche Boerse AG)Class B SharesDEEURJul 2005
RDSBSWX (SIX Swiss Exchange)Class B SharesCHCHFJul 2005
RDSBENXTAM (Euronext Amsterdam)Class B SharesNLEURJul 2005
RYDB.FOTCPK (Pink Sheets LLC)Class B SharesUSUSDJul 2005

Biography

Royal Dutch Shell plc operates as an energy and petrochemical company worldwide. The company operates through Integrated Gas, Upstream, and Downstream segments. It explores for, and extracts crude oil, nat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 23:56
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.