SHELNEUTRAL

Return on Equity (ROE)

10.7%

Higher than 45% of Energy sector peers

Updated 249h ago

Sector Performance

45th percentile

SHEL

10.7%

Sector Median

11.8%

Sector Avg

7.3%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from the money shareholders have invested.

SHEL's current ROE of 10.7% means it earns $10.70 for every $100 of shareholder equity. This sits slightly below the Energy sector median of 11.3%, placing the company in the 47th percentile among its sector peers — essentially near the middle of the pack. The year-over-year change is not available, but the quarter-over-quarter change is +4.9%, indicating an improvement from the prior quarter's 10.2%. While the current ROE is just below the sector median, the upward quarterly trend points to a modest positive shift in efficiency, though not enough to signal a clear opportunity or elevated risk. This combination of a near-median level with a slight quarterly improvement is consistent with the overall NEUTRAL verdict, as neither a strong outperformance nor a material weakness is present.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about SHEL?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does SHEL's Return on Equity (ROE) compare to its sector?

SHEL's Return on Equity (ROE) of 10.7% compares to a Energy sector median of 11.8%, placing it in the 45th percentile.

Who are SHEL's closest peers by Return on Equity (ROE)?

The closest Energy peers by Return on Equity (ROE) include: TRP (11.3%), ET (12.4%), IMO (12.4%), MTDR (10.1%), ENB (10.1%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.