No-moat Shell's adjusted first-quarter earnings fell to $7.7 billion from $9.6 billion the year before on weakness across all segments. However, results surpassed expectation largely on greater-than-anticipated integrated gas segment earnings. Our fair value estimate is unchanged.
Shell stands to benefit from the rise in global gas demand and likely strong prices over the next decade as LNG becomes integral to managing renewable intermittency.
Shell’s large LNG position puts it at risk if renewable power generation grows faster than expected or intermittency issues are solved, meaning natural gas will no longer be needed as a bridge fuel.
|
Metric
|
SHELL
|
XOM
|
TTE
|
|---|---|---|---|
Price/Earnings (Normalized) | 4.47 | 13.67 | 9.84 |
Price/Book Value | 1.23 | 2.30 | 1.43 |
Price/Sales | 0.79 | 1.45 | 0.83 |
Price/Cash Flow | 5.54 | 8.66 | 5.19 |
|
Metric
|
SHELL
|
XOM
|
TTE
|
|---|---|---|---|
Quick Ratio | 0.99 | 1.02 | 0.63 |
Current Ratio | 1.42 | 1.38 | 1.09 |
Interest Coverage | 6.66 | 54.07 | 12.35 |
|
Metric
|
SHELL
|
XOM
|
TTE
|
|---|---|---|---|
Return on Assets (Normalized) | 6.37% | 9.46% | 7.60% |
Return on Equity (Normalized) | 13.96% | 17.46% | 18.74% |
Return on Invested Capital (Normalized) | 9.93% | 14.30% | 12.81% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
XOM
| Exxon Mobil Corp | Drjxwlyxl | Qnbbt | $536.7 Bil | |
CVX
| Chevron Corp | Hsjjjpmc | Slnplx | $296.9 Bil | |
PCCYF
| PetroChina Co Ltd Class H | — | Jxhb | $243.0 Bil | |
SHEL
| Shell PLC ADR (Representing - Ordinary Shares) | Kvzlfnczn | Bmgfr | $228.8 Bil | |
RYDAF
| Shell PLC | — | Xjtd | $226.4 Bil | |
TTE
| TotalEnergies SE ADR | Gvzfhqbx | Mwzb | $168.1 Bil | |
BP
| BP PLC ADR | Ndbrfqns | Ftcw | $104.3 Bil | |
PBR
| Petroleo Brasileiro SA Petrobras ADR | Cvbnhydfm | Rrjd | $95.0 Bil | |
EQNR
| Equinor ASA ADR | Wkdlzpqy | Bmk | $81.7 Bil | |
E
| Eni SpA ADR | Bzfzjbvg | Htmn | $51.4 Bil |
