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Shell

SHEL
52
Oil & Gas Integrated · Energy
Price
$87.32
+2.24 (+2.63%)
Market Cap
$243.46B
Exchange
New York Stock Exchange
Winston Score
52
Winston is curious
Mixed quality — meaningful strengths and weaknesses.

Share count falling — buybacks

23.8% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 3.90B (2021) → 2.97B (2025)

Shell is one of the largest energy companies in the world. It finds and drills for oil and natural gas underground, then refines and sells those fuels to consumers, businesses, airlines, and industrial customers. Shell also sells natural gas in liquid form (called LNG) to countries around the world, and it operates thousands of gas stations under the Shell brand.

Shell makes money by selling oil, natural gas, refined fuels like gasoline and diesel, and chemicals made from petroleum. It operates in more than 70 countries, with major production in the Americas, Europe, Asia, and the Middle East, generating over $300 billion in annual revenue. Its size, global infrastructure, and long-term supply contracts give it a competitive edge over smaller rivals. The biggest risk Shell faces is the global shift toward electric vehicles and renewable energy, which could reduce long-term demand for the fossil fuels that drive nearly all of its revenue.

Winston Score History

Politician Trades

8 trades / 12mo

0 Congressional buys and 8 sells on SHEL in the last 12 months.

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Score breakdown

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Quality

Gross Margin
19.1%
Thin — 19.1% gross margin
Operating Margin
14.9%
Healthy — 14.9% operating margin
ROCE
4.6%
Weak — 4.6% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-5.1%
Shrinking sales (-5.1% YoY)
EPS YoY
+50.7%
Earnings growing fast (50.7% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion
202%
Turns 202% of profit into real cash
FCF Margin
7.0%
Modest free cash flow (7.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.29
Conservative — low debt load (0.29)
Interest Cover
5.38x
Adequate interest coverage (5.4x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
13.5x
Attractive valuation — P/E 13.5

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
+5.2
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (13.5 → 8.3)

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Dividends

Dividend Yield
3.82%
Moderate income — 3.82% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
+5.3%
Dividend growing modestly (5.3% YoY)

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