ENXTAM:RDSA

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

6 star dividend payer and fair value.


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

1.2%

RDSA

2.0%

NL Oil and Gas

1.8%

NL Market


1 Year Return

-6.8%

RDSA

-3.7%

NL Oil and Gas

7.7%

NL Market

Return vs Industry: RDSA underperformed the Dutch Oil and Gas industry which returned -3.7% over the past year.

Return vs Market: RDSA underperformed the Dutch Market which returned 7.7% over the past year.


Share holder returns

RDSAIndustryMarket
7 Day1.2%2.0%1.8%
30 Day2.8%0.8%-1.1%
90 Day-9.0%-4.3%-0.9%
1 Year-0.8%-6.8%1.7%-3.7%12.5%7.7%
3 Year37.4%13.8%44.4%23.6%41.9%26.1%
5 Year34.1%-3.0%53.2%18.9%70.4%36.2%

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?

41%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: RDSA (€26.29) is trading below our estimate of fair value (€44.56)

Significantly Undervalued: RDSA is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: RDSA is poor value based on its PE Ratio (11.7x) compared to the Oil and Gas industry average (9.2x).

PE vs Market: RDSA is good value based on its PE Ratio (11.7x) compared to the Dutch market (19x).


Price Based on Expected Growth

Low PEG Ratio: RDSA is poor value based on its PEG Ratio (1.6x)


Price Based on Value of Assets

PB vs Industry: RDSA is overvalued based on its PB Ratio (1.2x) compared to the XE Oil and Gas industry average (0.9x).


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?

7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: RDSA's forecast earnings growth (7.3% per year) is above the savings rate (0.4%).

Earnings vs Market: RDSA's earnings (7.3% per year) are forecast to grow slower than the Dutch market (11.6% per year).

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

Revenue vs Market: RDSA's revenue (1.4% per year) is forecast to grow slower than the Dutch market (5.9% per year).

High Growth Revenue: RDSA's revenue (1.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: RDSA's Return on Equity is forecast to be low in 3 years time (12.3%).


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

Earnings Trend: RDSA's earnings have grown by 18.7% per year over the past 5 years.

Accelerating Growth: RDSA's earnings growth over the past year (3.1%) is below its 5-year average (18.7% per year).

Earnings vs Industry: RDSA earnings growth over the past year (3.1%) underperformed the Oil and Gas industry 10%.


Return on Equity

High ROE: RDSA's Return on Equity (10.7%) is considered low.


Return on Assets

ROA vs Industry: RDSA has a higher Return on Assets than the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: RDSA's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Royal Dutch Shell's financial position?


Financial Position Analysis

Short Term Liabilities: RDSA's short term assets (€93.1B) exceeds its short term liabilities (€84.3B)

Long Term Liabilities: RDSA's short term assets (€93.1B) do not cover its long term liabilities (€128.3B)


Debt to Equity History and Analysis

Debt Level: RDSA's debt to equity ratio (40.1%) is considered high

Reducing Debt: RDSA's debt to equity ratio has increased from 20.9% to 40.1% over the past 5 years.

Debt Coverage: RDSA's debt is well covered by operating cash flow (68.4%).

Interest Coverage: RDSA's interest payments on its debt are well covered by EBIT (6.1x 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 1.184120x debt).


Next Steps

Dividend

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

6.52%

Expected Dividend Yield


Dividend Yield vs Market

company6.5%marketbottom25%2.3%markettop25%6.0%industryaverage4.7%forecastin3Years6.5%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: RDSA's dividend (6.47%) is higher than the bottom 25% of dividend payers in the Dutch market (2.27%).

High Dividend: RDSA's dividend (6.47%) is in the top 25% of dividend payers in the Dutch market (5.98%)

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: At its current payout ratio (75.4%), RDSA's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RDSA's dividends in 3 years are forecast to be covered by earnings (61.7% payout ratio).


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?

5.8yrs

Average management tenure


CEO

Ben Van Beurden (61yo)

5.8yrs

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 ($USD22.25M) is about average for companies of similar size in the Dutch market ($USD3.91M).

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


Management Age and Tenure

5.8yrs

Average Tenure

55yo

Average Age

Experienced Management: RDSA's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

5.8yrs

Average Tenure

65yo

Average Age

Experienced Board: RDSA's board of directors are considered experienced (5.8 years average tenure).


Insider Trading

Insider Buying: RDSA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$8,44226 Sep 19
Maarten Wetselaar
EntityIndividual
Shares319.66
Max PriceUS$26.41
BuyUS$21,41326 Sep 19
Ben Van Beurden
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares810.78
Max PriceUS$26.41
BuyUS$56,17126 Sep 19
Donny Ching
EntityIndividual
Role
Chief Legal Officer
Legal Director
Shares2,126.89
Max PriceUS$26.41
BuyUS$9,35226 Sep 19
Jessica Uhl
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares354.12
Max PriceUS$26.41
BuyUS$20,67226 Jun 19
Ben Van Beurden
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares712.83
Max PriceUS$29.00
BuyUS$54,22826 Jun 19
Donny Ching
EntityIndividual
Role
Chief Legal Officer
Legal Director
Shares1,869.93
Max PriceUS$29.00
BuyUS$9,02926 Jun 19
Jessica Uhl
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares311.33
Max PriceUS$29.00
BuyUS$360,08425 Feb 19
Maarten Wetselaar
EntityIndividual
Shares12,976
Max PriceUS$27.75
BuyUS$778,24925 Feb 19
Ben Van Beurden
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares28,045
Max PriceUS$27.75
BuyUS$221,02925 Feb 19
Donny Ching
EntityIndividual
Role
Chief Legal Officer
Legal Director
Shares7,965
Max PriceUS$27.75
BuyUS$402,09825 Feb 19
Jessica Uhl
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares14,490
Max PriceUS$27.75
SellUS$1,670,99119 Feb 19
Andrew Brown
EntityIndividual
Shares60,000
Max PriceUS$27.85

Ownership Breakdown


Management Team

  • Wai Kiew Loh

    Head of global Shell Marine Products Business

    • Tenure: 13.9yrs
  • Ann Pickard (64yo)

    Executive Vice President of Arctic - Upstream Americas

    • Tenure: 14.1yrs
  • Russell Caplan (72yo)

    Chairman of Australian Unit

    • Tenure: 13.7yrs
  • Ben Van Beurden (61yo)

    CEO & Director

    • Tenure: 5.8yrs
    • Compensation: US$20.14m
  • Ed Daniels

    Executive Vice President of Strategy & Portfolio

    • Tenure: 5.8yrs
  • Graham Hoff

    Executive Vice President of Chemicals

    • Tenure: 6.8yrs
  • Harry Brekelmans (54yo)

    Projects & Technology Director

    • Tenure: 5yrs
  • Donny Ching (55yo)

    Legal Director

    • Tenure: 0yrs
  • Ronan Cassidy (52yo)

    Chief Human Resources & Corporate Officer

    • Tenure: 3.8yrs
  • Jessica Uhl (51yo)

    CFO & Executive Director

    • Tenure: 2.6yrs
    • Compensation: US$4.86m

Board Members

  • Chad Holliday (71yo)

    • Tenure: 4.4yrs
    • Compensation: US$925.00k
  • Gerard Kleisterlee (73yo)

    Deputy Chair & Senior Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$223.00k
  • Linda Stuntz (65yo)

    Non-Executive Director

    • Tenure: 8.3yrs
    • Compensation: US$210.00k
  • Ann Godbehere (64yo)

    Non-Executive Director

    • Tenure: 1.4yrs
    • Compensation: US$97.00k
  • How Lim

    Executive Chairman of Shell Companies

    • Tenure: 14.1yrs
  • Gerrit Zalm (67yo)

    Non-Executive Director

    • Tenure: 6.8yrs
    • Compensation: US$177.00k
  • Ben Van Beurden (61yo)

    CEO & Director

    • Tenure: 5.8yrs
    • Compensation: US$20.14m
  • Nigel Sheinwald (66yo)

    Non-Executive Director

    • Tenure: 7.3yrs
    • Compensation: US$186.00k
  • Swee Chen Goh (58yo)

    Chairman of Shell Companies in Singapore

    • Tenure: 0yrs
  • Jessica Uhl (51yo)

    CFO & Executive Director

    • Tenure: 2.6yrs
    • 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: RDSA
  • Exchange: ENXTAM
  • Founded: 1907
  • Industry: Integrated Oil and Gas
  • Sector: Energy
  • Market Cap: €207.966b
  • Shares outstanding: 7.92b
  • 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 Analysis2019/10/12 20:59
End of Day Share Price2019/10/11 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.

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