Shell’s implied gains
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Shell has upstream, downstream, and integrated gas segments. The stock’s implied gains have widened since its price fell 9% in the past year. However, analysts’ mean target price on Shell stock has stayed flat at $78.5 in the past year.
Earnings growth expectation
Analysts expect Shell’s EPS to grow 5% in 2019. Shell and Total are the only companies expected to post higher earnings in 2019. Shell has a strong upstream portfolio, sound strategy, and an advantaged downstream segment.
Shell has worked on its debt and liquidity position. Shell’s debt position got stronger in 2018. Shell’s total debt-to-total capital ratio and net-debt-to-EBITDA ratio were below the industry averages, which pointed to a favorable scenario. Shell’s cash flows also rose. In 2018, the company’s cash flows from operations were in a surplus after covering its capex and dividend outflows—a favorable situation. The company has announced the third tranche of its $25 billion share buyback program.
Read Shell Strengthened Last Year: Where’s It Headed? to learn more.