SHELNEUTRAL

SHEL Gross Margin Analysis

19.3%

Higher than 19% of Energy sector peers

Updated 406h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue retained after deducting the cost of goods sold, indicating how efficiently a company produces its energy products.

Sector Performance

19th percentile

SHEL

19.3%

Sector Median

32.4%

Sector Avg

39.3%

Prior Period

19.1%(May 2026)

↑ Improving

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Deep Analysis

Gross margin measures the percentage of revenue retained after deducting the cost of goods sold, indicating how efficiently a company produces its energy products.

SHEL’s current gross margin of 19.3% is well below the Energy sector median of 32.4%, placing the company at the 18th percentile among sector peers. Year-over-year change is not available, but the metric edged up by 1.0% quarter-over-quarter from 19.1% to 19.3%. The combination of a low margin level (far below peers) with a slight quarterly improvement suggests a company that faces structural cost or pricing pressures, but is showing modest near‑term stabilization rather than deterioration. This level of performance introduces some investment risk related to competitive positioning, though the small uptick offers a minor counterbalance. The overall NEUTRAL verdict is supported, as the weak margin level leans negative while the lack of a declining trend prevents a more bearish stance.

Frequently Asked Questions

What does the Gross Margin tell investors about SHEL?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does SHEL's Gross Margin compare to its sector?

SHEL's Gross Margin of 19.3% compares to a Energy sector median of 32.4%, placing it in the 19th percentile.

Who are SHEL's closest peers by Gross Margin?

The closest Energy peers by Gross Margin include: NOG (32.9%), CVE (31.8%), LNG (31.7%), PXD (34.2%), RUN (30.4%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.