Why I Am Rating Shell A Strong Buy
- Felix Ouma
- Mar 27
- 8 min read
Updated: Mar 29
Summary
I am rating Shell (SHEL) as a strong buy because the company's leaders are making some structural improvements, cutting costs, and giving back a lot of cash to shareholders, something that the market has not appreciated.
Shell's outlook has improved, thanks to its LNG platform, deepwater portfolio, and smart spending plan, which together provide a more stable and predictable long-term cash flow than the company had in the past
Looking at the numbers, Shell's value is still really low compared to Exxon and Chevron. This is especially true when you consider things like how fast the company is growing and how much it's making in profits. PEG and EV/EBITDA ratio show that Shell's growth is seriously underpriced.
Shell has made significant progress, achieving over $5 Bn in structural cost reductions, and continues to generate cash flows that exceed expectations despite challenging commodity market conditions.
Key risks include commodity price volatility, weakness in chemicals, and execution across multiple global projects.
