Royal Dutch Shell Stock Analysis, Valuation (NYSE:RDS.A)

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$70.9 $1.77 (2.44%) RDS.A stock closing price May 23, 2018 (Closing)
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Royal Dutch Shell
Updated on : May 23, 2018
previous close
RDS.A 70.9 (0%)
S&P 500 2733.3 (0%)
Closing Price On: May 23, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Oil and Gas-International Integrated
Sector :
Oils-Energy
5 Quarter Revenue
Revenue Growth
2018-Q1
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-6.7%
Operating Profit
Operating Margin:
8.3%
Sector Average:
5.4%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$9.43B
Net Income:
$5.9B
Dividend Yield
RDS.A dividend yield:
4.51%
PROS      CONS
Net Margins
Cash Flow
ROIC
FCF Margin
High Dividend Yield
PE Valuation
Long Term Growth
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
RDS.A PS :
0.9
Industry PS :
1.7
Sector:   Oils-Energy.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
6%
Return on Equity:
7.8%
Free Cash Flow Margin:
5.9%
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RDS.A Stock Analysis

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Investors can watch the Amigobulls Royal Dutch Shell stock analysis video here. This is our analyst opinion covering the buy and sell arguments for RDS.A stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Royal Dutch Shell plc (ADR) Stock Rating 3.3/5

Amigobulls RDS.A stock analysis uses latest quarter 2018 Q1 financial data like Royal Dutch Shell revenue growth, profit margins and cash flows. Royal Dutch Shell valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Royal Dutch Shell stock rating is our opinion about the business fundamentals of the company.

Should you buy RDS.A stock?

  • LTM Net margins were good at 4.7% for Royal Dutch Shell.
  • The company has an operating cash flow which is 1.6 times the net income. We see this as a positive signal.
  • The price to earnings multiple of 17 is attractive when compared with the industry average PE ratio of 23.8.
  • The lower PS ratio 0.9 for RDS.A stock versus Oil and Gas-International Integrated industry average of 1.7 is a positive for the company.
  • Royal Dutch Shell's dividend yield of 4.51% is attractive.
  • Royal Dutch Shell's return on invested capital of 6% is good.
  • Royal Dutch Shell has a healthy FCF (Free Cash Flow) margin of 5.9%.

Should you sell RDS.A stock?

  • Revenue declined at a CAGR of -6.7% over the last 5 years.

Comments on this video and Royal Dutch Shell stock

Amigobulls Royal Dutch Shell stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Fundamentals of a company give detailed information which helps in making invesment decisions.

While doing a study of the company financials, Royal Dutch Shell revenue growth and profit or net income are two main metrics which help in identifying whether RDS.A stock is overvalued or undervalued. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Royal Dutch Shell stock.