Balancing Dividends and Fundamentals: The Case of NYSE:EQNR.

Last update: Nov 7, 2023

Our stock screener has singled out EQUINOR ASA-SPON ADR (NYSE:EQNR) as a promising choice for dividend investors. NYSE:EQNR not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Looking at the Dividend

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:EQNR has achieved a 7 out of 10:

With a Yearly Dividend Yield of 6.78%, EQNR is a good candidate for dividend investing.
EQNR's Dividend Yield is a higher than the industry average which is at 7.19.
Compared to an average S&P500 Dividend Yield of 2.69, EQNR pays a better dividend.
The dividend of EQNR is nicely growing with an annual growth rate of 29.97%!
EQNR has been paying a dividend for at least 10 years, so it has a reliable track record.
37.70% of the earnings are spent on dividend by EQNR. This is a low number and sustainable payout ratio.

How We Gauge Health for NYSE:EQNR

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:EQNR has earned a 7 out of 10:

EQNR has an Altman-Z score of 3.81. This indicates that EQNR is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.81, EQNR is doing good in the industry, outperforming 80.00% of the companies in the same industry.
EQNR has a debt to FCF ratio of 1.70. This is a very positive value and a sign of high solvency as it would only need 1.70 years to pay back of all of its debts.
EQNR has a Debt to FCF ratio of 1.70. This is in the better half of the industry: EQNR outperforms 74.55% of its industry peers.
EQNR has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
EQNR has a Current ratio of 1.84. This is in the better half of the industry: EQNR outperforms 73.18% of its industry peers.
EQNR's Quick ratio of 1.73 is fine compared to the rest of the industry. EQNR outperforms 73.18% of its industry peers.

Assessing Profitability for NYSE:EQNR

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:EQNR scores a 7 out of 10:

EQNR has a better Return On Assets (17.18%) than 74.09% of its industry peers.
The Return On Equity of EQNR (48.40%) is better than 86.36% of its industry peers.
EQNR has a better Return On Invested Capital (43.91%) than 95.45% of its industry peers.
The 3 year average ROIC (26.14%) for EQNR is below the current ROIC(43.91%), indicating increased profibility in the last year.
EQNR's Profit Margin has improved in the last couple of years.
EQNR has a Operating Margin of 46.31%. This is in the better half of the industry: EQNR outperforms 78.64% of its industry peers.
In the last couple of years the Operating Margin of EQNR has grown nicely.
EQNR's Gross Margin has improved in the last couple of years.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Check the latest full fundamental report of EQNR for a complete fundamental analysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.