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Royal Dutch Shell

ENXTAM:RDSA
Snowflake Description

Solid track record established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RDSA
ENXTAM
€235B
Market Cap
  1. Home
  2. NL
  3. Energy
Company description

Royal Dutch Shell plc operates as an energy and petrochemical company worldwide. The last earnings update was 19 days ago. More info.


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RDSA Share Price and Events
7 Day Returns
1%
ENXTAM:RDSA
3.4%
Europe Oil and Gas
1.5%
NL Market
1 Year Returns
-7.1%
ENXTAM:RDSA
-2.4%
Europe Oil and Gas
-3.2%
NL Market
RDSA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Royal Dutch Shell (RDSA) 1% 1.6% 3.9% -7.1% 32.2% 0.3%
Europe Oil and Gas 3.4% -1.5% 1.7% -2.4% 36.3% 5.5%
NL Market 1.5% -2.3% 3.3% -3.2% 27.9% 25.4%
1 Year Return vs Industry and Market
  • RDSA underperformed the Oil and Gas industry which returned -2.4% over the past year.
  • RDSA underperformed the Market in Netherlands which returned -3.2% over the past year.
Price Volatility
RDSA
Industry
5yr Volatility vs Market
Related Companies

RDSA Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Royal Dutch Shell to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Royal Dutch Shell.

ENXTAM:RDSA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 22 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7%
Perpetual Growth Rate 10-Year NL Government Bond Rate 0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ENXTAM:RDSA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year NL Govt Bond Rate 0.4%
Equity Risk Premium S&P Global 6%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.92
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.915 (1 + (1- 25%) (35.33%))
1.106
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.11
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.37% + (1.106 * 5.96%)
6.96%

Discounted Cash Flow Calculation for ENXTAM:RDSA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Royal Dutch Shell is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ENXTAM:RDSA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.96%)
2019 24,168.54 Analyst x8 22,595.97
2020 28,886.88 Analyst x10 25,250.03
2021 28,461.85 Analyst x6 23,259.74
2022 29,257.00 Analyst x1 22,353.84
2023 34,984.00 Analyst x1 24,990.36
2024 36,561.50 Est @ 4.51% 24,417.86
2025 37,756.13 Est @ 3.27% 23,575.00
2026 38,661.60 Est @ 2.4% 22,569.64
2027 39,353.55 Est @ 1.79% 21,478.77
2028 39,890.26 Est @ 1.36% 20,355.09
Present value of next 10 years cash flows $230,846.30
ENXTAM:RDSA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $39,890.26 × (1 + 0.37%) ÷ (6.96% – 0.37%)
$607,600.12
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $607,600.12 ÷ (1 + 6.96%)10
$310,044.42
ENXTAM:RDSA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $230,846.30 + $310,044.42
$540,890.73
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $540,890.73 / 8,074.93
$66.98
ENXTAM:RDSA Discount to Share Price
Calculation Result
Exchange Rate USD/EUR
(Reporting currency to currency of ENXTAM:RDSA)
0.896
Value per Share
(EUR)
= Value per Share in USD x Exchange Rate (USD/EUR)
= $66.98 x 0.896
€60
Value per share (EUR) From above. €60.00
Current discount Discount to share price of €29.00
= -1 x (€29.00 - €60.00) / €60.00
51.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Royal Dutch Shell is available for.
Intrinsic value
>50%
Share price is €29 vs Future cash flow value of €60
Current Discount Checks
For Royal Dutch Shell to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Royal Dutch Shell's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Royal Dutch Shell's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ENXTAM:RDSA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $2.84
ENXTAM:RDSA Share Price ** ENXTAM (2019-05-21) in EUR €29
ENXTAM:RDSA Share Price converted to USD reporting currency Exchange rate (EUR/ USD) 1.116 $32.38
Europe Oil and Gas Industry PE Ratio Median Figure of 90 Publicly-Listed Oil and Gas Companies 10.39x
Netherlands Market PE Ratio Median Figure of 80 Publicly-Listed Companies 17x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Royal Dutch Shell.

ENXTAM:RDSA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ENXTAM:RDSA Share Price ÷ EPS (both in USD)

= 32.38 ÷ 2.84

11.38x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Royal Dutch Shell is overvalued based on earnings compared to the Europe Oil and Gas industry average.
  • Royal Dutch Shell is good value based on earnings compared to the Netherlands market.
Price based on expected Growth
Does Royal Dutch Shell's expected growth come at a high price?
Raw Data
ENXTAM:RDSA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.38x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts
4.8%per year
Europe Oil and Gas Industry PEG Ratio Median Figure of 59 Publicly-Listed Oil and Gas Companies 0.97x
Netherlands Market PEG Ratio Median Figure of 66 Publicly-Listed Companies 1.5x

*Line of best fit is calculated by linear regression .

ENXTAM:RDSA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.38x ÷ 4.8%

2.38x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Royal Dutch Shell is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Royal Dutch Shell's assets?
Raw Data
ENXTAM:RDSA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $24.22
ENXTAM:RDSA Share Price * ENXTAM (2019-05-21) in EUR €29
ENXTAM:RDSA Share Price converted to USD reporting currency Exchange rate (EUR/ USD) 1.116 $32.38
Europe Oil and Gas Industry PB Ratio Median Figure of 187 Publicly-Listed Oil and Gas Companies 0.89x
Netherlands Market PB Ratio Median Figure of 103 Publicly-Listed Companies 1.94x
ENXTAM:RDSA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ENXTAM:RDSA Share Price ÷ Book Value per Share (both in USD)

= 32.38 ÷ 24.22

1.34x

* Primary Listing of Royal Dutch Shell.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Royal Dutch Shell is overvalued based on assets compared to the Europe Oil and Gas industry average.
X
Value checks
We assess Royal Dutch Shell's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Royal Dutch Shell has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

RDSA Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Royal Dutch Shell expected to grow at an attractive rate?
  • Royal Dutch Shell's earnings growth is expected to exceed the low risk savings rate of 0.4%.
Growth vs Market Checks
  • Royal Dutch Shell's earnings growth is positive but not above the Netherlands market average.
  • Royal Dutch Shell's revenues are expected to decrease over the next 1-3 years, this is below the Netherlands market average.
Annual Growth Rates Comparison
Raw Data
ENXTAM:RDSA Future Growth Rates Data Sources
Data Point Source Value (per year)
ENXTAM:RDSA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts 4.8%
ENXTAM:RDSA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 22 Analysts -0.1%
Europe Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 7%
Europe Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 2.2%
Netherlands Market Earnings Growth Rate Market Cap Weighted Average 9.3%
Netherlands Market Revenue Growth Rate Market Cap Weighted Average 2.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ENXTAM:RDSA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ENXTAM:RDSA Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 58,022 28,041
2022-12-31 55,439 27,098
2021-12-31 360,090 53,076 25,072 9
2020-12-31 373,257 51,380 24,892 14
2019-12-31 359,493 46,876 22,714 12
ENXTAM:RDSA Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 382,879 52,243 23,454
2018-12-31 388,379 53,085 23,352
2018-09-30 371,573 38,339 21,569
2018-06-30 347,252 33,829 19,817
2018-03-31 322,618 35,614 15,338
2017-12-31 305,179 35,650 12,977
2017-09-30 284,524 37,545 10,711
2017-06-30 270,549 38,455 7,999
2017-03-31 256,833 29,462 7,629
2016-12-31 233,591 20,615 4,575
2016-09-30 226,970 16,868 3,973
2016-06-30 233,821 19,607 -4,818

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Royal Dutch Shell's earnings are expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).
  • Royal Dutch Shell's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ENXTAM:RDSA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below

All data from Royal Dutch Shell Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ENXTAM:RDSA Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 2.78 3.06 2.50 2.00
2020-12-31 3.14 3.85 2.76 4.00
2019-12-31 2.66 2.67 2.65 2.00
ENXTAM:RDSA Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 2.84
2018-12-31 2.82
2018-09-30 2.60
2018-06-30 2.39
2018-03-31 1.86
2017-12-31 1.58
2017-09-30 1.31
2017-06-30 0.98
2017-03-31 0.94
2016-12-31 0.58
2016-09-30 0.54
2016-06-30 -0.69

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Royal Dutch Shell is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Royal Dutch Shell's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Royal Dutch Shell has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

RDSA Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Royal Dutch Shell's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 exceeds its 5-year average (52.9% vs 14.6%)
  • Royal Dutch Shell's earnings growth has exceeded the Europe Oil and Gas industry average in the past year (52.9% vs 35%).
Earnings and Revenue History
Royal Dutch Shell's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Royal Dutch Shell Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ENXTAM:RDSA Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 382,879.00 23,454.00 12,081.00 990.00
2018-12-31 388,379.00 23,352.00 12,251.00 986.00
2018-09-30 371,573.00 21,569.00 12,022.00 932.00
2018-06-30 347,252.00 19,817.00 12,049.00 935.00
2018-03-31 322,618.00 15,338.00 11,695.00 918.00
2017-12-31 305,179.00 12,977.00 11,557.00 922.00
2017-09-30 284,524.00 10,711.00 10,870.00 942.00
2017-06-30 270,549.00 7,999.00 11,245.00 960.00
2017-03-31 256,833.00 7,629.00 12,383.00 983.00
2016-12-31 233,591.00 4,575.00 13,375.00 1,014.00
2016-09-30 226,970.00 3,973.00 11,597.00 1,031.00
2016-06-30 233,821.00 -4,818.00 14,495.00 1,074.00
2016-03-31 247,808.00 -2,007.00 14,773.00 1,083.00
2015-12-31 264,960.00 1,939.00 14,904.00 1,093.00
2015-09-30 299,188.00 1,595.00 18,785.00 1,159.00
2015-06-30 338,333.00 13,474.00 16,679.00 1,170.00
2015-03-31 377,153.00 14,795.00 17,522.00 1,192.00
2014-12-31 421,105.00 14,874.00 16,308.00 1,222.00
2014-09-30 437,974.00 16,060.00 19,067.00 1,287.00
2014-06-30 446,636.00 16,274.00 20,073.00 1,276.00
2014-03-31 448,083.00 12,704.00 20,079.00 1,307.00
2013-12-31 451,235.00 16,371.00 19,953.00 1,318.00
2013-09-30 460,039.00 21,318.00 19,191.00 1,306.00
2013-06-30 455,644.00 23,805.00 18,378.00 1,325.00
2013-03-31 460,043.00 26,151.00 17,783.00 1,307.00
2012-12-31 467,153.00 26,712.00 17,569.00 1,307.00
2012-09-30 464,681.00 26,484.00 17,235.00 1,295.00
2012-06-30 475,975.00 26,296.00 17,023.00 1,238.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Royal Dutch Shell has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Royal Dutch Shell used its assets more efficiently than the Europe Oil and Gas industry average last year based on Return on Assets.
  • 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).
X
Past performance checks
We assess Royal Dutch Shell's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Royal Dutch Shell has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

RDSA Health

 How is Royal Dutch Shell's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Royal Dutch Shell's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Royal Dutch Shell's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Royal Dutch Shell Company Filings, last reported 1 month ago.

ENXTAM:RDSA Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 200,256.00 92,541.00 21,470.00
2018-12-31 202,534.00 76,824.00 26,741.00
2018-09-30 201,486.00 78,378.00 19,112.00
2018-06-30 201,240.00 80,471.00 19,468.00
2018-03-31 201,313.00 88,022.00 21,927.00
2017-12-31 197,812.00 85,665.00 20,312.00
2017-09-30 198,533.00 88,356.00 20,699.00
2017-06-30 196,257.00 90,347.00 23,992.00
2017-03-31 192,753.00 91,629.00 19,595.00
2016-12-31 188,511.00 92,476.00 19,130.00
2016-09-30 188,729.00 97,829.00 19,984.00
2016-06-30 192,506.00 90,329.00 15,222.00
2016-03-31 198,014.00 80,873.00 11,019.00
2015-12-31 164,121.00 58,379.00 31,752.00
2015-09-30 162,482.00 55,587.00 31,846.00
2015-06-30 178,008.00 52,941.00 26,981.00
2015-03-31 168,822.00 43,840.00 19,867.00
2014-12-31 172,786.00 45,540.00 21,607.00
2014-09-30 180,992.00 42,982.00 19,027.00
2014-06-30 186,113.00 44,122.00 15,419.00
2014-03-31 183,130.00 45,729.00 11,924.00
2013-12-31 181,148.00 44,562.00 9,696.00
2013-09-30 180,406.00 37,078.00 14,278.00
2013-06-30 178,221.00 32,971.00 12,540.00
2013-03-31 181,239.00 35,790.00 17,614.00
2012-12-31 176,182.00 37,754.00 18,550.00
2012-09-30 185,183.00 36,358.00 18,839.00
2012-06-30 178,076.00 32,980.00 17,282.00
  • Royal Dutch Shell's level of debt (46.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (25% vs 46.2% today).
  • Debt is well covered by operating cash flow (56.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 9.5x coverage).
X
Financial health checks
We assess Royal Dutch Shell's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Royal Dutch Shell has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

RDSA Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.81%
Current annual income from Royal Dutch Shell dividends. Estimated to be 5.76% next year.
If you bought €2,000 of Royal Dutch Shell shares you are expected to receive €116 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Royal Dutch Shell's pays a higher dividend yield than the bottom 25% of dividend payers in Netherlands (2.35%).
  • Royal Dutch Shell's dividend is below the markets top 25% of dividend payers in Netherlands (5.84%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ENXTAM:RDSA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 22 Analyst Estimates (S&P Global) See Below
Europe Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 60 Stocks 5.5%
Netherlands Market Average Dividend Yield Market Cap Weighted Average of 68 Stocks 4%
Netherlands Minimum Threshold Dividend Yield 10th Percentile 1.7%
Netherlands Bottom 25% Dividend Yield 25th Percentile 2.4%
Netherlands Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ENXTAM:RDSA Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 1.88 1.00
2021-12-31 1.93 6.00
2020-12-31 1.85 8.00
2019-12-31 1.83 8.00
ENXTAM:RDSA Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-02 1.880 5.885
2019-01-31 1.880 5.948
2018-11-01 1.880 6.251
2018-07-26 1.880 5.728
2018-04-26 1.880 5.396
2018-02-01 1.880 5.778
2017-11-02 1.880 5.695
2017-07-27 1.880 6.471
2017-05-04 1.880 6.963
2017-02-02 1.880 7.146
2016-11-01 1.880 7.104
2016-07-28 1.880 7.529
2016-05-04 1.880 7.237
2016-02-04 1.880 7.845
2015-10-29 1.880 8.248
2015-07-30 1.880 7.137
2015-04-30 1.880 6.385
2015-01-29 1.880 6.014
2014-10-30 1.880 5.625
2014-07-31 1.880 4.925
2014-04-30 1.880 4.657
2014-01-30 1.800 4.961
2013-10-31 1.800 5.236
2013-08-01 1.800 5.505
2013-05-02 1.800 5.411
2013-01-31 1.720 5.213
2012-11-01 1.720 5.018
2012-07-26 1.720 4.911
2012-04-26 1.720 5.213
2012-02-02 1.720 4.842
2011-10-27 1.680 4.763
2011-07-28 1.680 5.129
2011-04-28 1.680 4.725
2011-02-03 1.680 4.704
2010-10-28 1.680 5.099
2010-07-29 1.680 5.760
2010-04-28 1.680 6.224
2010-02-04 1.680 5.828
2009-10-29 1.680 5.586
2009-07-30 1.680 5.941

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Royal Dutch Shell's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.6x coverage).
X
Income/ dividend checks
We assess Royal Dutch Shell's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Royal Dutch Shell afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Royal Dutch Shell has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

RDSA Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ben Van Beurden
COMPENSATION $20,137,000
AGE 60
TENURE AS CEO 5.3 years
CEO Bio

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 September 2013 and served as its Executive Vice President Chemicals from 2006 to 2012. He served as an Executive Vice President of Shell Chemical LP since December 1, 2006. He served as an Executive Vice President at Shell Chemicals U.K. Ltd. He served as Executive Vice President of Chemicals at Royal Dutch Shell plc. He also served on the boards at the European Chemical Industry Council. He joined Shell in 1983 and served as Vice President of Manufacturing Excellence and Support. Mr. van Beurden held a number of senior technical roles in The Netherlands and overseas before taking up the position of General Manager Operations Malaysia LNG in 1996. From 2000 to 2002, he served as Vice President Mexico Shell Gas and Power, followed by an assignment as Private Assistant to the Chairman of Shell. From 1983 to 2002, he was employed by Royal Dutch/Shell Group of companies in a variety of technical and commercial roles both in the upstream and downstream businesses. He has been a Director of Royal Dutch Shell plc since January 1, 2014. In March 2009, Mr. van Beurden was appointed to the Board of the International Council of Chemicals Associations (ICCA). He also served on the boards of a number of leading industry associations. He graduated with a Masters degree in Chemical Engineering from Delft University of Technology in The Netherlands.

CEO Compensation
  • Ben's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Ben's remuneration is higher than average for companies of similar size in Netherlands.
Management Team Tenure

Average tenure and age of the Royal Dutch Shell management team in years:

5.3
Average Tenure
53.5
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.
Management Team

Ben Van Beurden

TITLE
CEO & Director
COMPENSATION
$20M
AGE
60
TENURE
5.3 yrs

Jessica Uhl

TITLE
CFO & Executive Director
COMPENSATION
$5M
AGE
50
TENURE
2.2 yrs

Harry Brekelmans

TITLE
Projects & Technology Director
AGE
53
TENURE
4.6 yrs

Donny Ching

TITLE
Legal Director
AGE
54

Ed Daniels

TITLE
Executive Vice President of Strategy & Portfolio
TENURE
5.3 yrs

Ronan Cassidy

TITLE
Chief Human Resources & Corporate Officer
AGE
51
TENURE
3.3 yrs

Ann Pickard

TITLE
Executive Vice President of Arctic - Upstream Americas
AGE
63
TENURE
13.7 yrs

Wai Kiew Loh

TITLE
Head of global Shell Marine Products Business
TENURE
13.5 yrs

Russell Caplan

TITLE
Chairman of Australian Unit
AGE
71
TENURE
13.3 yrs

Wael Sawan

TITLE
Executive Vice President of Deep Water
AGE
43
TENURE
7.3 yrs
Board of Directors Tenure

Average tenure and age of the Royal Dutch Shell board of directors in years:

5.3
Average Tenure
64
Average Age
  • The tenure for the Royal Dutch Shell board of directors is about average.
Board of Directors

Chad Holliday

TITLE
COMPENSATION
$925K
AGE
70
TENURE
4 yrs

Ben Van Beurden

TITLE
CEO & Director
COMPENSATION
$20M
AGE
60
TENURE
5.3 yrs

Gerard Kleisterlee

TITLE
Deputy Chair & Senior Independent Director
COMPENSATION
$223K
AGE
72
TENURE
1 yrs

Jessica Uhl

TITLE
CFO & Executive Director
COMPENSATION
$5M
AGE
50
TENURE
2.2 yrs

How Lim

TITLE
Executive Chairman of Shell Companies
TENURE
13.7 yrs

Swee Chen Goh

TITLE
Chairman of Shell Companies in Singapore
AGE
57

Nigel Sheinwald

TITLE
Non-Executive Director
COMPENSATION
$186K
AGE
65
TENURE
6.8 yrs

Linda Stuntz

TITLE
Non-Executive Director
COMPENSATION
$210K
AGE
64
TENURE
7.9 yrs

Gerrit Zalm

TITLE
Non-Executive Director
COMPENSATION
$177K
AGE
66
TENURE
6.3 yrs

Catherine Hughes

TITLE
Non-Executive Director
COMPENSATION
$206K
AGE
56
TENURE
1.9 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Royal Dutch Shell insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
25. Feb 19 Buy Jessica Uhl Individual 22. Feb 19 22. Feb 19 14,490 €27.75 €402,098
25. Feb 19 Buy Maarten Wetselaar Individual 22. Feb 19 22. Feb 19 12,976 €27.75 €360,084
25. Feb 19 Buy Donny Ching Individual 22. Feb 19 22. Feb 19 7,965 €27.75 €221,029
25. Feb 19 Buy Ben Van Beurden Individual 22. Feb 19 22. Feb 19 28,045 €27.75 €778,249
19. Feb 19 Sell Andrew Brown Individual 15. Feb 19 15. Feb 19 -60,000 €27.85 €-1,670,991
21. Jun 18 Buy Donny Ching Individual 18. Jun 18 18. Jun 18 880 €29.05 €25,571
21. Jun 18 Buy Jessica Uhl Individual 18. Jun 18 18. Jun 18 124 €29.05 €3,591
21. Jun 18 Buy Maarten Wetselaar Individual 18. Jun 18 18. Jun 18 117 €29.05 €3,400
21. Jun 18 Buy Donny Ching Individual 18. Jun 18 18. Jun 18 87 €29.05 €2,518
21. Jun 18 Buy Ben Van Beurden Individual 18. Jun 18 18. Jun 18 353 €29.05 €10,261
X
Management checks
We assess Royal Dutch Shell's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Royal Dutch Shell has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

RDSA News

Simply Wall St News

How Much Are Royal Dutch Shell plc (AMS:RDSA) Insiders Spending On Buying Shares?

Check out our latest analysis for Royal Dutch Shell The Last 12 Months Of Insider Transactions At Royal Dutch Shell In the last twelve months, the biggest single sale by an insider was when the , Andrew Brown, sold €1.7m worth of shares at a price of €27.85 per share. … ENXTAM:RDSA Recent Insider Trading, May 17th 2019 Royal Dutch Shell is not the only stock that insiders are buying. … When combined with notable insider ownership, these factors suggest Royal Dutch Shell insiders are well aligned, and that they may think the share price is too low.

Simply Wall St -

Here's What Royal Dutch Shell plc's (AMS:RDSA) P/E Is Telling Us

To keep it practical, we'll show how Royal Dutch Shell plc's (AMS:RDSA) P/E ratio could help you assess the value on offer. … How Do I Calculate Royal Dutch Shell's Price To Earnings Ratio … Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS)

Simply Wall St -

A Note On Royal Dutch Shell plc's (AMS:RDSA) ROE and Debt To Equity

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … To keep the lesson grounded in practicality, we'll use ROE to better understand Royal Dutch Shell plc (AMS:RDSA). … Our data shows Royal Dutch Shell has a return on equity of 12% for the last year.

Simply Wall St -

If You Like EPS Growth Then Check Out Royal Dutch Shell (AMS:RDSA) Before It's Too Late

In contrast to all that, I prefer to spend time on companies like Royal Dutch Shell (AMS:RDSA), which has not only revenues, but also profits. … Over the last three years, Royal Dutch Shell has grown earnings per share (EPS) like bamboo after rain; fast, and from a low base. … Like the last firework on New Year's Eve accelerating into the sky, Royal Dutch Shell's EPS shot from US$1.58 to US$2.82, over the last year.

Simply Wall St -

What Makes Royal Dutch Shell plc (AMS:RDSA) A Great Dividend Stock?

If you are an income investor, then Royal Dutch Shell plc (AMS:RDSA) should be on your radar. … Royal Dutch Shell plc operates as an energy and petrochemical company worldwide. … Currently yielding 5.8%, let's take a closer look at Royal Dutch Shell's dividend profile.

Simply Wall St -

Does Royal Dutch Shell's (AMS:RDSA) Share Price Gain of 34% Match Its Business Performance?

For example, Royal Dutch Shell plc (AMS:RDSA) shareholders have seen the share price rise 34% over three years, well in excess of the market return (27%, not including dividends). … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … Royal Dutch Shell was able to grow its EPS at 109% per year over three years, sending the share price higher.

Simply Wall St -

Should You Be Holding Royal Dutch Shell plc (AMS:RDSA)?

Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Royal Dutch Shell plc (AMS:RDSA) due to its excellent fundamentals in more than one area.

Simply Wall St -

What Does Royal Dutch Shell plc’s (AMS:RDSA) 9.7% ROCE Say About The Business?

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St -

Will Royal Dutch Shell plc's (AMS:RDSA) Earnings Grow In The Years Ahead?

In December 2018, Royal Dutch Shell plc (AMS:RDSA) released its latest earnings announcement, whicha

Simply Wall St -

Should Royal Dutch Shell plc (AMS:RDSA) Be Part Of Your Dividend Portfolio?

There is a lot to be liked about Royal Dutch Shell plc (AMS:RDSA) as an income stock. … Let's dig deeper into whether Royal Dutch Shell should have a place in your portfolio. … View our latest analysis for Royal Dutch Shell

Simply Wall St -

RDSA Company Info

Description

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.

Details
Name: Royal Dutch Shell plc
RDSA
Exchange: ENXTAM
Founded: 1907
€234,587,259,462
8,074,927,001
Website: http://www.shell.com
Address: Royal Dutch Shell plc
Carel van Bylandtlaan 30,
The Hague,
Zuid-Holland, 2596 HR,
Netherlands
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ENXTAM RDSA Class A Shares Euronext Amsterdam NL EUR 26. Jan 2005
OTCPK RYDA.F Class A Shares Pink Sheets LLC US USD 26. Jan 2005
DB R6C Class A Shares Deutsche Boerse AG DE EUR 26. Jan 2005
XTRA R6C Class A Shares XETRA Trading Platform DE EUR 26. Jan 2005
LSE 0LN9 Class A Shares London Stock Exchange GB EUR 26. Jan 2005
LSE RDSA Class A Shares London Stock Exchange GB GBP 26. Jan 2005
SWX RDSA Class A Shares SIX Swiss Exchange CH CHF 26. Jan 2005
WBAG RDSA Class A Shares Wiener Boerse AG AT EUR 26. Jan 2005
SEP RDSA Class A Shares The Stock Exchange Prague Co. Ltd. CZ CZK 26. Jan 2005
BATS-CHIXE RDSAA Class A Shares BATS 'Chi-X Europe' GB EUR 26. Jan 2005
BATS-CHIXE RDSAL Class A Shares BATS 'Chi-X Europe' GB GBP 26. Jan 2005
BATS-CHIXE R6CD Class A Shares BATS 'Chi-X Europe' GB EUR 26. Jan 2005
NYSE RDS.B ADR EA REP 2 CL'B' EUR0.07 New York Stock Exchange US USD 20. Jul 2005
NYSE RDS.A SPONS ADR A New York Stock Exchange US USD 20. Jul 2005
LSE RDSB Class B Shares London Stock Exchange GB GBP 20. Jul 2005
OTCPK RYDB.F Class B Shares Pink Sheets LLC US USD 20. Jul 2005
DB R6C3 Class B Shares Deutsche Boerse AG DE EUR 20. Jul 2005
DB R6C2 ADR EA REP 2 CL'B' EUR0.07 Deutsche Boerse AG DE EUR 20. Jul 2005
DB R6C1 SPONS ADR A Deutsche Boerse AG DE EUR 20. Jul 2005
XTRA R6C3 Class B Shares XETRA Trading Platform DE EUR 20. Jul 2005
SWX RDSB Class B Shares SIX Swiss Exchange CH CHF 20. Jul 2005
ENXTAM RDSB Class B Shares Euronext Amsterdam NL EUR 20. Jul 2005
BMV RDS A SPONS ADR A Bolsa Mexicana de Valores MX MXN 20. Jul 2005
BMV RDS B ADR EA REP 2 CL'B' EUR0.07 Bolsa Mexicana de Valores MX MXN 20. Jul 2005
BATS-CHIXE RDSBL Class B Shares BATS 'Chi-X Europe' GB GBP 20. Jul 2005
BATS-CHIXE RDSBA Class B Shares BATS 'Chi-X Europe' GB EUR 20. Jul 2005
Number of employees
Current staff
Staff numbers
81,000
Royal Dutch Shell employees.
Industry
Integrated Oil and Gas
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/21 21:05
End of day share price update: 2019/05/21 00:00
Last estimates confirmation: 2019/05/21
Last earnings filing: 2019/05/02
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.