ENXTAM:RDSA

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Established dividend payer with adequate 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

Stable Share Price: RDSA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.3%

RDSA

-1.1%

NL Oil and Gas

-1.6%

NL Market


1 Year Return

-17.8%

RDSA

-4.6%

NL Oil and Gas

8.2%

NL Market

Return vs Industry: RDSA underperformed the Dutch Oil and Gas industry which returned -4.6% over the past year.

Return vs Market: RDSA underperformed the Dutch Market which returned 8.2% over the past year.


Shareholder returns

RDSAIndustryMarket
7 Day-2.3%-1.1%-1.6%
30 Day-12.3%-6.7%-0.1%
90 Day-14.8%-7.8%2.4%
1 Year-12.2%-17.8%0.9%-4.6%12.6%8.2%
3 Year11.6%-7.3%30.8%12.1%34.7%19.9%
5 Year8.0%-22.3%42.3%9.7%47.3%18.3%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RDSA (€22.74) is trading below our estimate of fair value (€64.49)

Significantly Below Fair Value: RDSA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RDSA is poor value based on its PE Ratio (12.6x) compared to the Oil and Gas industry average (10.7x).

PE vs Market: RDSA is good value based on its PE Ratio (12.6x) compared to the Dutch market (18.8x).


Price to Earnings Growth Ratio

PEG Ratio: RDSA is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: RDSA is overvalued based on its PB Ratio (1x) compared to the XE Oil and Gas industry average (0.9x).


Next Steps

Future Growth

How is Royal Dutch Shell forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RDSA's forecast earnings growth (8.8% per year) is above the savings rate (-0.2%).

Earnings vs Market: RDSA's earnings (8.8% per year) are forecast to grow slower than the Dutch market (12.6% per year).

High Growth Earnings: RDSA's earnings are forecast to grow, but not significantly.

Revenue vs Market: RDSA's revenue (2% per year) is forecast to grow slower than the Dutch market (6.8% per year).

High Growth Revenue: RDSA's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RDSA's Return on Equity is forecast to be low in 3 years time (11%).


Next Steps

Past Performance

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

27.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RDSA has high quality earnings.

Growing Profit Margin: RDSA's current net profit margins (4.6%) are lower than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: RDSA's earnings have grown significantly by 27.9% per year over the past 5 years.

Accelerating Growth: RDSA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RDSA had negative earnings growth (-32.2%) over the past year, making it difficult to compare to the Oil and Gas industry average (-5.1%).


Return on Equity

High ROE: RDSA's Return on Equity (8.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Royal Dutch Shell's financial position?


Financial Position Analysis

Short Term Liabilities: RDSA's short term assets ($92.7B) exceed its short term liabilities ($79.6B).

Long Term Liabilities: RDSA's short term assets ($92.7B) do not cover its long term liabilities ($134.2B).


Debt to Equity History and Analysis

Debt Level: RDSA's debt to equity ratio (34.1%) is considered satisfactory.

Reducing Debt: RDSA's debt to equity ratio has increased from 22.5% to 34.1% over the past 5 years.

Debt Coverage: RDSA's debt is well covered by operating cash flow (65%).

Interest Coverage: RDSA's interest payments on its debt are well covered by EBIT (21.5x coverage).


Balance Sheet

Inventory Level: RDSA has a high level of physical assets or inventory.

Debt Coverage by Assets: RDSA's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

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

7.61%

Current Dividend Yield


Dividend Yield vs Market

company7.6%marketbottom25%2.2%markettop25%5.7%industryaverage6.3%forecastin3Years7.8%

Current dividend yield vs market & industry

Notable Dividend: RDSA's dividend (7.61%) is higher than the bottom 25% of dividend payers in the Dutch market (2.01%).

High Dividend: RDSA's dividend (7.61%) is in the top 25% of dividend payers in the Dutch market (5.61%)


Stability and Growth of Payments

Stable Dividend: RDSA's dividends per share have been stable in the past 10 years.

Growing Dividend: RDSA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (95.6%), RDSA's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RDSA's dividends in 3 years are forecast to be covered by earnings (68.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.1yrs

Average management tenure


CEO

Ben Van Beurden (61yo)

6.1yrs

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

Compensation vs Market: Ben's total compensation ($USD21.87M) is above average for companies of similar size in the Dutch market ($USD4.56M).

Compensation vs Earnings: Ben's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ben Van Beurden
CEO & Director6.1yrsUS$20.14m0.0081% $14.3m
Jessica Uhl
CFO & Executive Director2.9yrsUS$4.86m0.00097% $1.7m
Harry Brekelmans
Projects & Technology Director5.3yrsno datano data
Tjerk Huysinga
Executive Vice President of Investor Relations0yrsno datano data
Donny Ching
Legal Director0yrsno data0.0032% $5.6m
Edward Daniels
Executive Vice President of Strategy & Portfolio6.1yrsno datano data
Ronan Cassidy
Chief Human Resources & Corporate Officer4.1yrsno datano data
Ann Pickard
Executive Vice President of Arctic - Upstream Americas14.4yrsno datano data
Wai Kiew Loh
Head of global Shell Marine Products Business14.3yrsno datano data
Russell Caplan
Chairman of Australian Unit14yrsno datano data

6.1yrs

Average Tenure

55yo

Average Age

Experienced Management: RDSA's management team is seasoned and experienced (6.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ben Van Beurden
CEO & Director6.1yrsUS$20.14m0.0081% $14.3m
Jessica Uhl
CFO & Executive Director2.9yrsUS$4.86m0.00097% $1.7m
Charles Holliday
4.8yrsUS$925.00k0.0013% $2.3m
Gerard Kleisterlee
Deputy Chair & Senior Independent Director1.8yrsUS$223.00k0.000070% $123.7k
Linda Stuntz
Non-Executive Director8.7yrsUS$210.00k0.00032% $565.5k
Ann Godbehere
Non-Executive Director1.8yrsUS$97.00k0.00012% $212.1k
How Lim
Executive Chairman of Shell Companies14.4yrsno datano data
Gerrit Zalm
Non-Executive Director7.1yrsUS$177.00k0.000030% $53.0k
Nigel Sheinwald
Non-Executive Director7.6yrsUS$186.00k0.000010% $17.7k
Swee Chen Goh
Chairman of Shell Companies in Singapore0yrsno datano data

6.1yrs

Average Tenure

65yo

Average Age

Experienced Board: RDSA's board of directors are considered experienced (6.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Royal Dutch Shell plc
  • Ticker: RDSA
  • Exchange: ENXTAM
  • Founded: 1907
  • Industry: Integrated Oil and Gas
  • Sector: Energy
  • Market Cap: €176.729b
  • Shares outstanding: 7.81b
  • 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
RDSBASE (Buenos Aires Stock Exchange)CEDEAR EACH REP 0.5 'B'ADRARARSMay 2004
RDSALSE (London Stock Exchange)YesClass A SharesGBGBPJan 2005
RDSAENXTAM (Euronext Amsterdam)YesClass A SharesNLEURJan 2005
R6CDB (Deutsche Boerse AG)YesClass A SharesDEEURJan 2005
RDSASWX (SIX Swiss Exchange)YesClass A SharesCHCHFJan 2005
RYDA.FOTCPK (Pink Sheets LLC)YesClass A SharesUSUSDJan 2005
R6CXTRA (XETRA Trading Platform)YesClass A SharesDEEURJan 2005
RDSAABATS-CHIXE (BATS 'Chi-X Europe')YesClass A SharesGBEURJan 2005
RDSALBATS-CHIXE (BATS 'Chi-X Europe')YesClass A SharesGBGBPJan 2005
R6CDBATS-CHIXE (BATS 'Chi-X Europe')YesClass A SharesGBEURJan 2005
RDSAWBAG (Wiener Boerse AG)YesClass A SharesATEURJan 2005
RDSASEP (The Stock Exchange Prague Co. Ltd.)YesClass A SharesCZCZKJan 2005
RDSBLSE (London Stock Exchange)Class B SharesGBGBPJul 2005
RDSBENXTAM (Euronext Amsterdam)Class B SharesNLEURJul 2005
R6C3DB (Deutsche Boerse AG)Class B SharesDEEURJul 2005
R6C1DB (Deutsche Boerse AG)ADR EA REP 2 CL'A' EUR0.07DEEURJul 2005
R6C2DB (Deutsche Boerse AG)ADR EA REP 2 CL'B' EUR0.07DEEURJul 2005
RDS ABMV (Bolsa Mexicana de Valores)ADR EA REP 2 CL'A' EUR0.07MXMXNJul 2005
RDS BBMV (Bolsa Mexicana de Valores)ADR EA REP 2 CL'B' EUR0.07MXMXNJul 2005
RDS.BNYSE (New York Stock Exchange)ADR EA REP 2 CL'B' EUR0.07USUSDJul 2005
RDS.ANYSE (New York Stock Exchange)ADR EA REP 2 CL'A' EUR0.07USUSDJul 2005
RYDB.FOTCPK (Pink Sheets LLC)Class B SharesUSUSDJul 2005
R6C3XTRA (XETRA Trading Platform)Class B SharesDEEURJul 2005
RDSBLBATS-CHIXE (BATS 'Chi-X Europe')Class B SharesGBGBPJul 2005
RDSBABATS-CHIXE (BATS 'Chi-X Europe')Class B SharesGBEURJul 2005
RDSBSWX (SIX Swiss Exchange)Class B SharesCHCHFJul 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, natural gas, and natural gas liquids; markets and transports oil and gas; produces gas-to-liquids fuels and other products; and operates upstream and midstream infrastructure necessary to deliver gas to market. The company also markets and trades natural gas, LNG, crude oil, electricity, carbon-emission rights; and markets and sells liquefied natural gas as a fuel for heavy-duty vehicles and marine vessels. In addition, it trades in and refines crude oil and other feed stocks, such as gasoline, diesel, heating oil, aviation fuel, marine fuel, biofuel, lubricants, bitumen, and sulphur; produces and sells petrochemicals; and manages oil sands activities. Further, the company produces base chemicals comprising ethylene, propylene, and aromatics, as well as intermediate chemicals, such as styrene monomer, propylene oxide, solvents, detergent alcohols, ethylene oxide, and ethylene glycol. Royal Dutch Shell plc was founded in 1907 and is headquartered in The Hague, the Netherlands. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 21:02
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.