A Look At The Fair Value Of Shell plc (LON:SHEL)
Jun 21
U.K. (FTSE) Oil and Gas Industry Analysis
UpdatedJun 27, 2024
DataAggregated Company Financials
Companies77
- 7D1.3%
- 3M2.6%
- 1Y13.6%
- YTD5.3%
In the last week, the Oil and Gas industry is up 2.2%, with Shell up 2.2%. This takes the industry's 12 month performance to a gain of 15%. Earnings are forecast to grow by 5.7% annually.
Industry Valuation and Performance
Has the U.K. Oil and Gas Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 27 Jun 2024 | UK£265.7b | UK£410.4b | UK£22.2b | 10.4x | 12x | 0.6x |
| Sat, 25 May 2024 | UK£267.6b | UK£406.8b | UK£22.1b | 10.8x | 12.1x | 0.7x |
| Mon, 22 Apr 2024 | UK£278.4b | UK£437.0b | UK£28.9b | 7.3x | 9.6x | 0.6x |
| Wed, 20 Mar 2024 | UK£260.3b | UK£425.7b | UK£27.5b | 6.9x | 9.5x | 0.6x |
| Fri, 16 Feb 2024 | UK£248.6b | UK£430.8b | UK£27.0b | 5.7x | 9.2x | 0.6x |
| Sun, 14 Jan 2024 | UK£269.4b | UK£613.2b | UK£62.9b | 3.8x | 4.3x | 0.4x |
| Tue, 12 Dec 2023 | UK£275.2b | UK£620.4b | UK£63.6b | 4x | 4.3x | 0.4x |
| Thu, 09 Nov 2023 | UK£283.7b | UK£629.8b | UK£64.3b | 4x | 4.4x | 0.5x |
| Sat, 07 Oct 2023 | UK£290.4b | UK£648.6b | UK£58.5b | 4.6x | 5x | 0.4x |
| Mon, 04 Sep 2023 | UK£281.8b | UK£635.7b | UK£57.9b | 4.5x | 4.9x | 0.4x |
| Wed, 02 Aug 2023 | UK£284.0b | UK£644.4b | UK£64.2b | 4.7x | 4.4x | 0.4x |
| Fri, 30 Jun 2023 | UK£267.5b | UK£669.7b | UK£76.5b | 4.4x | 3.5x | 0.4x |
| Sun, 28 May 2023 | UK£273.9b | UK£679.8b | UK£78.2b | 4.8x | 3.5x | 0.4x |
| Tue, 25 Apr 2023 | UK£296.8b | UK£668.1b | UK£54.3b | 4.8x | 5.5x | 0.4x |
| Thu, 23 Mar 2023 | UK£283.8b | UK£677.0b | UK£56.0b | 4.3x | 5.1x | 0.4x |
| Sat, 18 Feb 2023 | UK£326.3b | UK£681.8b | UK£56.8b | 3.9x | 5.7x | 0.5x |
| Mon, 16 Jan 2023 | UK£312.3b | UK£645.2b | UK£50.5b | 4.7x | 6.2x | 0.5x |
| Wed, 14 Dec 2022 | UK£302.0b | UK£641.3b | UK£50.7b | 4.5x | 6x | 0.5x |
| Fri, 11 Nov 2022 | UK£302.8b | UK£670.1b | UK£51.4b | 4.4x | 5.9x | 0.5x |
| Sun, 09 Oct 2022 | UK£307.6b | UK£642.3b | UK£45.6b | 5.1x | 6.7x | 0.5x |
| Tue, 06 Sep 2022 | UK£311.0b | UK£627.0b | UK£44.3b | 6.7x | 7x | 0.5x |
| Thu, 04 Aug 2022 | UK£258.3b | UK£607.8b | UK£43.2b | 7.5x | 6x | 0.4x |
| Sat, 02 Jul 2022 | UK£249.1b | UK£568.7b | UK£28.1b | 8.5x | 8.9x | 0.4x |
| Mon, 30 May 2022 | UK£281.7b | UK£518.1b | UK£23.4b | 8.8x | 12x | 0.5x |
| Wed, 27 Apr 2022 | UK£259.8b | UK£468.8b | UK£39.8b | 12.2x | 6.5x | 0.6x |
| Fri, 25 Mar 2022 | UK£256.0b | UK£418.3b | UK£33.7b | 13.1x | 7.6x | 0.6x |
| Sun, 20 Feb 2022 | UK£214.0b | UK£246.5b | UK£21.6b | 11.6x | 9.9x | 0.9x |
| Tue, 18 Jan 2022 | UK£229.1b | UK£268.6b | UK£21.5b | 13.7x | 10.7x | 0.9x |
| Thu, 16 Dec 2021 | UK£212.8b | UK£276.3b | UK£22.0b | 11.5x | 9.7x | 0.8x |
| Sat, 13 Nov 2021 | UK£233.8b | UK£261.9b | UK£17.1b | 12.4x | 13.7x | 0.9x |
| Mon, 11 Oct 2021 | UK£246.8b | UK£252.3b | UK£17.2b | 12.1x | 14.3x | 1x |
| Wed, 08 Sep 2021 | UK£222.0b | UK£248.2b | UK£16.5b | 11.4x | 13.4x | 0.9x |
| Fri, 06 Aug 2021 | UK£212.1b | UK£248.2b | UK£16.3b | 12.3x | 13x | 0.9x |
Price to Earnings Ratio
13.1x
Current Industry PE
- Investors are optimistic on the British Oil and Gas industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 12.1x which is higher than its 3-year average PE of 7.9x.
- The industry is trading close to its 3-year average PS ratio of 0.58x.
Past Earnings Growth
- The earnings for companies in the Oil and Gas industry have grown 11% per year over the last three years.
- Revenues for these companies have grown 18% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the U.K. Energy industry?
| GB Market | 0.22% | |
| Energy | 1.26% | |
| Oil and Gas | 1.29% | |
| Integrated Oil and Gas | 1.36% | |
| Oil and Gas Exploration and Production | -0.39% | |
| Coal and Fuels | -1.32% | |
| Oil and Gas Storage and Transportation | -3.27% | |
| Oil and Gas Refining and Marketing | -6.38% | |
Industry PE
- Investors are most optimistic about the Coal and Fuels industry which is trading above its 3-year average PE ratio.
- It looks like they are confident that earnings will grow faster in the future than they have historically.
- Investors are most pessimistic about the Oil and Gas Storage and Transportation industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average.
Forecasted Growth
- Analysts are most optimistic on the Oil and Gas Exploration and Production industry, expecting annual earnings growth of 27% over the next 5 years.
- This is better than its past earnings decline of 56% per year.
- In contrast, the Oil and Gas Storage and Transportation industry is expected to see its earnings decline by 10% 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 | |
|---|---|---|---|---|---|
| SHEL Shell | UK£27.91 | 1.6% +UK£2.7b | 20.1% | PE12.5x | |
| BP. BP | UK£4.71 | 0.9% +UK£594.2m | 3.4% | PE10.4x | |
| HBR Harbour Energy | UK£3.10 | 3.0% +UK£68.6m | 38.2% | PE94.2x | |
| G3E G3 Exploration | UK£0.28 | n/a UK£43.9m | n/a | n/a | |
| GKP Gulf Keystone Petroleum | UK£1.48 | 7.6% +UK£22.5m | 27.4% | PS3.3x |
