Is SHEL a high-quality business?

AlphaMadera's AlphaQuality grade scores Shell plc on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how SHEL compares to a Buffett-style quality bar.

What is Shell plc's AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to SHEL based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes SHEL a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

SHEL - Shell plc

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $101.60 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Oil & Gas E&P

AlphaQuality — archetype-weighted quantitative grade

B- 63.7 / 100 composite

Composite Grade

Composite of six pillars weighted for oil & gas e&p businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 15%

C 51.3

5yr Avg ROIC 9.2% 56/100
Operating Margin Trend -0.24 pp/yr 41/100

Capital Efficiency

Weight: 10%

A- 83.2

5yr Avg ROE 13.3% 74/100
5yr Share-Count CAGR -6.6% 100/100

Growth Quality

Weight: 5%

D 35.6

5yr Revenue CAGR 0.5% 24/100
5yr EPS CAGR 4.0% 48/100
Revenue-Growth Years (5) 2/5 40/100

Cash Generation

Weight: 25%

A- 80.1

5yr FCF Margin 10.5% 71/100
5yr FCF/NI Conversion 1.48x 91/100

Balance Sheet

Weight: 25%

B 72.5

Net Debt / EBITDA 1.31x 80/100
Interest Coverage (EBIT/Int) 7.28x 74/100
Altman Z-Score 2.49 57/100

Stability

Weight: 20%

D 38.8

EPS Volatility (σ/μ) 0.63 20/100
Piotroski F-Score 6 67/100
Negative-Revenue Years (5) 3/5 40/100

4 of 4 gurus held; 2 added; 2 trimmed.

Holders: 4
Avg Δ position: +134.1%
New buys: 0
Full exits: 0

Cooperman increased +564%
Dalio decreased -69%
Wood increased +41%

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (15%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (10%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (5%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (25%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (25%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (20%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.