Shell PLC Profit Margin vs. Cash And Equivalents

SHEL Stock  USD 61.88  0.27  0.43%   
Based on the measurements of profitability obtained from Shell PLC's financial statements, Shell PLC's profitability may be sliding down. It has an above-average risk of reporting lower numbers next quarter. Profitability indicators assess Shell PLC's ability to earn profits and add value for shareholders.

Shell PLC Net Profit Margin

0.0562

The value of Price To Sales Ratio is estimated to slide to 0.67. The value of Days Sales Outstanding is estimated to slide to 29.69. At this time, Shell PLC's Income Quality is quite stable compared to the past year.
For Shell PLC profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Shell PLC to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Shell PLC ADR utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Shell PLC's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Shell PLC ADR over time as well as its relative position and ranking within its peers.
  
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Is Oil & Gas Exploration & Production space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Shell PLC. If investors know Shell will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Shell PLC listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.35)
Dividend Share
1.376
Earnings Share
4.92
Revenue Per Share
92.712
Quarterly Revenue Growth
(0.07)
The market value of Shell PLC ADR is measured differently than its book value, which is the value of Shell that is recorded on the company's balance sheet. Investors also form their own opinion of Shell PLC's value that differs from its market value or its book value, called intrinsic value, which is Shell PLC's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Shell PLC's market value can be influenced by many factors that don't directly affect Shell PLC's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Shell PLC's value and its price as these two are different measures arrived at by different means. Investors typically determine if Shell PLC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Shell PLC's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Shell PLC ADR Cash And Equivalents vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Shell PLC's current stock value. Our valuation model uses many indicators to compare Shell PLC value to that of its competitors to determine the firm's financial worth.
Shell PLC ADR is rated below average in profit margin category among its peers. It is rated fifth in cash and equivalents category among its peers creating about  739,468,690,702  of Cash And Equivalents per Profit Margin. At this time, Shell PLC's Net Profit Margin is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Shell PLC by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Shell Cash And Equivalents vs. Profit Margin

Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Shell PLC

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.05 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.

Shell PLC

Cash

 = 

Bank Deposits

+

Liquidities

 = 
38.97 B
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).

Shell Cash And Equivalents Comparison

Shell PLC is currently under evaluation in cash and equivalents category among its peers.

Shell PLC Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Shell PLC, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Shell PLC will eventually generate negative long term returns. The profitability progress is the general direction of Shell PLC's change in net profit over the period of time. It can combine multiple indicators of Shell PLC, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income20 B21 B
Operating Income62.9 B34 B
Income Before Tax32.6 B31.5 B
Total Other Income Expense Net-30.3 B-28.8 B
Net Income19.4 B22.4 B
Income Tax Expense13 B9.4 B
Net Income From Continuing Ops29.6 B16.2 B
Net Income Applicable To Common Shares48.7 B51.1 B
Net Interest Income-1.8 B-1.9 B
Interest Income2.2 B2.3 B
Change To Netincome15.4 B16.1 B
Net Income Per Share 5.75  3.55 
Income Quality 2.68  3.95 
Net Income Per E B T 0.59  0.48 

Shell Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Shell PLC. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Shell PLC position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Shell PLC's important profitability drivers and their relationship over time.

Use Shell PLC in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Shell PLC position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Shell PLC will appreciate offsetting losses from the drop in the long position's value.

Shell PLC Pair Trading

Shell PLC ADR Pair Trading Analysis

The ability to find closely correlated positions to Shell PLC could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Shell PLC when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Shell PLC - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Shell PLC ADR to buy it.
The correlation of Shell PLC is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Shell PLC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Shell PLC ADR moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Shell PLC can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Shell PLC position

In addition to having Shell PLC in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Agriculture Thematic Idea Now

Agriculture
Agriculture Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Agriculture theme has 30 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Agriculture Theme or any other thematic opportunities.
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When determining whether Shell PLC ADR is a strong investment it is important to analyze Shell PLC's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Shell PLC's future performance. For an informed investment choice regarding Shell Stock, refer to the following important reports:
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You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
To fully project Shell PLC's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Shell PLC ADR at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Shell PLC's income statement, its balance sheet, and the statement of cash flows.
Potential Shell PLC investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Shell PLC investors may work on each financial statement separately, they are all related. The changes in Shell PLC's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Shell PLC's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.