Are Investors Undervaluing Shell plc (LON:SHEL) By 22%?
Nov 26
U.K. (FTSE) Energy Sector Analysis
UpdatedDec 03, 2023
DataAggregated Company Financials
Companies100
- 7D-0.6%
- 3M1.2%
- 1Y-10.8%
- YTD-11.5%
In the last week, Energy has been flat. Unfortunately though, the industry is down 11% over the past 12 months. In the next few years, earnings are forecast to decline by 7.6% annually.
Sector Valuation and Performance
Has the U.K. Energy Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 03 Dec 2023 | UK£282.7b | UK£620.3b | UK£62.4b | 4.7x | 4.5x | 0.5x |
| Tue, 31 Oct 2023 | UK£300.8b | UK£657.8b | UK£58.0b | 5.3x | 5.2x | 0.5x |
| Thu, 28 Sep 2023 | UK£302.2b | UK£659.6b | UK£58.2b | 4.3x | 5.2x | 0.5x |
| Sat, 26 Aug 2023 | UK£273.6b | UK£641.3b | UK£56.6b | 4.9x | 4.8x | 0.4x |
| Mon, 24 Jul 2023 | UK£278.3b | UK£667.4b | UK£74.6b | 4.2x | 3.7x | 0.4x |
| Wed, 21 Jun 2023 | UK£268.1b | UK£670.5b | UK£75.0b | 4.6x | 3.6x | 0.4x |
| Fri, 19 May 2023 | UK£281.9b | UK£685.0b | UK£76.9b | 4.6x | 3.7x | 0.4x |
| Sun, 16 Apr 2023 | UK£301.2b | UK£677.4b | UK£53.7b | 4.7x | 5.6x | 0.4x |
| Tue, 14 Mar 2023 | UK£298.8b | UK£687.0b | UK£55.8b | 4x | 5.4x | 0.4x |
| Thu, 09 Feb 2023 | UK£317.8b | UK£673.5b | UK£49.6b | 3.7x | 6.4x | 0.5x |
| Sat, 07 Jan 2023 | UK£306.5b | UK£659.9b | UK£50.3b | 4.5x | 6.1x | 0.5x |
| Mon, 05 Dec 2022 | UK£310.2b | UK£654.6b | UK£50.7b | 4.6x | 6.1x | 0.5x |
| Wed, 02 Nov 2022 | UK£318.9b | UK£669.3b | UK£51.0b | 4.4x | 6.3x | 0.5x |
| Fri, 30 Sep 2022 | UK£295.7b | UK£665.7b | UK£46.8b | 4.9x | 6.3x | 0.4x |
| Sun, 28 Aug 2022 | UK£312.6b | UK£625.8b | UK£43.6b | 7.1x | 7.2x | 0.5x |
| Tue, 26 Jul 2022 | UK£249.8b | UK£568.4b | UK£26.5b | 7.5x | 9.4x | 0.4x |
| Thu, 23 Jun 2022 | UK£249.7b | UK£571.0b | UK£27.9b | 9x | 8.9x | 0.4x |
| Sat, 21 May 2022 | UK£281.1b | UK£543.8b | UK£24.8b | 8.7x | 11.3x | 0.5x |
| Mon, 18 Apr 2022 | UK£269.5b | UK£453.3b | UK£36.9b | 11.9x | 7.3x | 0.6x |
| Wed, 16 Mar 2022 | UK£240.2b | UK£427.3b | UK£32.9b | 9.1x | 7.3x | 0.6x |
| Fri, 11 Feb 2022 | UK£238.1b | UK£241.2b | UK£22.0b | 13.6x | 10.8x | 1x |
| Sun, 09 Jan 2022 | UK£234.0b | UK£279.0b | UK£21.2b | 12.5x | 11x | 0.8x |
| Tue, 07 Dec 2021 | UK£222.8b | UK£284.8b | UK£21.6b | 10.4x | 10.3x | 0.8x |
| Thu, 04 Nov 2021 | UK£237.5b | UK£257.4b | UK£16.7b | 12.7x | 14.2x | 0.9x |
| Sat, 02 Oct 2021 | UK£242.9b | UK£260.6b | UK£16.6b | 11.3x | 14.6x | 0.9x |
| Mon, 30 Aug 2021 | UK£213.4b | UK£257.1b | UK£15.8b | 11.4x | 13.5x | 0.8x |
| Tue, 06 Jul 2021 | UK£217.1b | UK£257.1b | UK£15.8b | 11.8x | 13.7x | 0.8x |
| Fri, 09 Apr 2021 | UK£201.8b | UK£223.7b | -UK£1,955,237,248.71 | 12.2x | -103.2x | 0.9x |
| Thu, 31 Dec 2020 | UK£164.8b | UK£222.8b | -UK£14,236,581,475.89 | 14x | -11.6x | 0.7x |
Price to Earnings Ratio
-8.9x
Current Industry PE
- Investors are pessimistic on the British Energy industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 4.5x which is higher than its 3-year average PE of -1.8x.
- The industry is trading close to its 3-year average PS ratio of 0.62x.
Past Earnings Growth
- Total earnings for the Energy industry have gone up over the last three years, and the industry is now profitable. Revenues have grown 40% per year.
- This means that more sales are being generated by the industry overall, and subsequently profits are increasing too.
Industry Trends
Which industries have driven the changes within the U.K. Energy sector?
| GB Market | 0.38% | |
| Energy | -0.57% | |
| Oil and Gas | -0.56% | |
| Energy Services | -2.27% | |
Industry PE
- Investors are most optimistic about the Oil and Gas industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings decline of 8.2%, which is less than its past year's earnings decline of 13.5%.
Forecasted Growth
- Analysts are most optimistic on the Energy Services industry, expecting annual earnings growth of 89% over the next 5 years.
- This is better than its past earnings decline of 51% per year.
- In contrast, the Oil and Gas industry is expected to see its earnings decline by 8.2% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| BP. BP | UK£4.78 | 0.4% +UK£216.7m | -0.5% | PE4x | |
| ENOG Energean | UK£10.20 | 4.5% +UK£78.8m | -25.3% | PS2.4x | |
| G3E G3 Exploration | UK£0.28 | n/a UK£43.9m | n/a | n/a | |
| SEPL Seplat Energy | UK£1.31 | 4.6% +UK£34.1m | 49.7% | PE36x | |
| HBR Harbour Energy | UK£2.27 | 1.1% +UK£19.3m | -27.4% | PS0.5x |
