UK stock alert

UK

Afternoon Alert: Royal Dutch Shell - A share decreases 0.6%, leads Oil & gas producers sector lower 17 August 2018 15:58 BST

NEWS BITES - EUROPE

Royal Dutch Shell PLC - A share (L:RDSA) has decreased 0.6% to trade at GBX2,461.0 vs. the Oil & gas producers sector which weakened 99.2 points (or 4.6%) to 2,058.0. Representing a weighting of about 26.6% of the sector, the stock accounted for 3.5% of today's loss. Trading volume was 2.0 times average so far today.

Current indications of bearish signals that support the trend in the unusual trading:

+ The negative 36.38 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

+ The price sank 5.7% in the last month.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

+ Dividend yield of 2.9% [4.4%]

+ Price/Earnings of 15.6 [11.4]

Other Bearish Signals include:

+ Tobin's Q Ratio is 0.3. Compared with the rest of the market the stock is overvalued and ranks in the bottom quartile of stocks by value of Q Ratio.

+ Net profit margin has averaged 2.4% in the last 3 years. This suggests the company is less profitable with a low margin of safety.

Note

Royal Dutch Shell - A share today is at a discount of 49.8% to the 12-month high of GBX4,899.25 on 20 Nov, 2017. It is at a premium of 20.7% to the 12-month low of GBX2,038.33 on 15 Sep, 2017.

Bullish Signals:

Total Liabilities/EBITDA of 4.7 is less than the Joseph Piotroski benchmark of <5.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

Return on Capital Employed 5.5% [3.3%]

Return on Assets 3.3% [2.6%]

Return on Equity 6.8% [5.7%]

Price to Book of 0.7 [0.7]

Royal Dutch Shell PLC - A share (L:RDSA; LON:RDSA; LN:RDSA)

ISIN: GB00B03MLX29

Source: www.BuySellSignals.com