Royal Dutch Shell PLC

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RDS.A : NYSE : Basic Materials
$53.95 -0.41 | -0.75%
Today's Range: 53.67 - 54.72
Avg. Daily Volume: 4,990,500
07/27/16 - 4:02 PM ET

Financial Analysis


ROYAL DUTCH SHELL PLC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income fell significantly; although net income growth outperformed the average competitor in its industry, revenue growth did not.

During the same period, stockholders' equity ("net worth") has increased by 17.00% from the same quarter last year.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)48554.065706.0
EBITDA ($mil)4697.07679.0
EBIT ($mil)-1450.03075.0
Net Income ($mil)484.04430.0


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)11019.019867.0
Total Assets ($mil)416304.0341832.0
Total Debt ($mil)80873.043840.0
Equity ($mil)196521.0167960.0


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin17.5117.69
EBITDA Margin9.6711.68
Operating Margin-2.994.68
Sales Turnover0.61.1
Return on Assets-0.484.32
Return on Equity-1.028.8
Debt Q1 FY16 Q1 FY15
Current Ratio1.041.15
Debt/Capital0.290.21
Interest Expense370.0566.0
Interest Coverage-3.925.43


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)3998.933151.13
Div / share0.940.94
EPS0.141.39
Book value / share49.1453.3
Institutional Own % n/a n/a
Avg Daily Volume4989535.05562772.0

Valuation


HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 1.12 indicates a significant discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 11.73. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, ROYAL DUTCH SHELL PLC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
RDS.A NM Peers 70.76   RDS.A 7.63 Peers 306.30

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

RDS.A's P/E is negative making this valuation measure meaningless.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

RDS.A is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
RDS.A 6.64 Peers 39.26   RDS.A NA Peers 2.07

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

RDS.A is trading at a significant discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RDS.A 1.12 Peers 11.73   RDS.A -113.97 Peers -202.73

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

RDS.A is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

RDS.A is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
RDS.A 0.89 Peers 2.43   RDS.A -34.30 Peers -25.78

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

RDS.A is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

RDS.A significantly trails its peers on the basis of sales growth

 

 

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