SHELShell plc
Is the business good?
A genuinely good business: earnings fully cash-backed (1.6×) and margins widening.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is SHEL?
Shell plc earns 19% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 9.6 points above what the capital costs: growth creates value
- Operating margin
- 19%
Operating margin · Oil & Gas Integrated median 13% · 12 months to Q2 2025
- Cash conversion
- 1.55×
Cash conversion · 1.85× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −12%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −16% |
| FY2021 | 7.1% |
| FY2022 | 16% |
| FY2023 | 20% |
| FY2024 | 21% |
| FY2025 | 20% |
Details›
- Gross margin12 months to Q2 2025
- 34%
- Operating margin12 months to Q2 2025
- 19%
- Net margin12 months to Q2 2025
- 6.8%
- Free cash flow margin
- 11%
- R&D as % of revenue
- 0.33%
- Revenue, trailing twelve months
- $281.6B
- Free cash flow, trailing twelve months
- $30.5B
- Net income, trailing twelve months
- $19.3B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 19%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Oil & Gas Integrated
Ranks #5 of 12 by RyuScore