the coincidence (LSE Shel) The stock price looks cheap at the present time, with a price ratio to profits only 8.95. This is much lower than average FTSE 100 P/E 15 times.

There is a reason for this, of course. Shell shares decreased with the price of oil, as it declined about 10 % in 12 months. They still wear 67 % over five years though.

This is less than half of the decline in the FTSE 100 competitor BP. Shell seems to have a better idea of ​​how to move in zero, but with the oil price of about $ 65 a barrel, still struggling.

Recovery shares?

It is far from an expired deal that can wear a shell from its lowest levels today and make investors rich again.

There is a small sign that the price of oil is about to recover. As OPEC+ increases, it may decrease more, especially since China is struggling and Donald Trump brings fluctuations.

Then there is a batch towards zero zero, which can go in either direction. In theory, building a new renewable energy line will threaten the fossil fuel giant, but we need it to help us pay the transition. This is especially true given the high energy demand, thanks to artificial intelligence and the rest.

The results of Shell in the first quarter, published on May 2, showed modified profits of $ 5.6 billion. This is a significant decrease from $ 7.73 billion in the previous year, but before analysts’ expectations worth $ 4.96 billion. The company has also announced a quarterly share re -purchase program worth $ 3.5 billion, which represents the fourteenth consecutive quarter of at least $ 3 billion in re -purchases.

The cash flow from the operations reached $ 9.3 billion, just less than the consensus expectations of $ 9.6 billion.

Record of profit distributions

So what about this profits? The backward return of 4.4 % is fine, but not exactly to death for it. It is expected to crawl in 2026, but only to 4.49 %.

Shell is not the star of the profits that he had once. Over the past fifteen years, I have been expecting to double the shareholders’ payments in a decent clip. Instead, it decreased by 2.88 % average a year.

The Board of Directors did not reduce its profits throughout the entire year from 188 cents in 2019 to 65.3 cents during the 2020 pandemic. He returned it. While the payments have risen in a decent clip since then, they started from this lower level. In 2024, the total profit distributions were 139 US cents. This is at the levels that were last seen in 2007.

Analyst expectations

The 19 analysts who serve the share price expectations for a year produced an average goal of about 3,027 pixels. If this is true, this is a handsome increase of about 21.5 % over today. Besides this return, this would give investors a total of 26 %.

Accordingly, if someone invested 10,000 pounds in stocks today, you will grow to 12600 pounds per year.

Obviously, no one can predict the future. I only use it as a guide to market thinking. Here is another. Of the 32 analysts who offer one -year stock rankings, which are 23 impressive names for a strong purchase. Four says Hold and five say selling.

Shell continues to face the risks, as oil prices slow down, spread zero zero in confusion, and fight the global economy. It may look cheap, but there is nothing to ensure that its shares will suddenly close the evaluation gap.

But for those who want to be exposed to energy, the low evaluation today makes a shell worth looking. More than BP, in my book.