Royal Dutch Shell Stock Analysis, Valuation (NYSE:RDS.A)
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 3.8/5
Amigobulls RDS.A stock analysis uses latest quarter 2018 Q2 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 5.6% for Royal Dutch Shell.
- The operating cash flow looks good at 1.577 times the net income.
- The price to earnings multiple of 14.2 is attractive when compared with the sector average PE ratio of 20.4.
- The lower PS ratio 0.7 for RDS.A stock versus Oils-Energy sector average of 1.6 is a positive for the company.
- Royal Dutch Shell is a dividend paying stock with a high yield of 5.09.
- Royal Dutch Shell generates a high return on invested capital of 7.5.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Royal Dutch Shell at 10.
- The company has a good Free Cash Flow (FCF) margin of 5.7.
Should you sell RDS.A stock?
- The company saw an average annual sales decline of -5.1 in sales over the last 5 years.
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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.