NYSE:EQNR appears to be flying under the radar despite its strong fundamentals.

Last update: Nov 10, 2023

Our stock screening tool has pinpointed EQUINOR ASA-SPON ADR (NYSE:EQNR) as an undervalued stock. NYSE:EQNR maintains a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

How We Gauge Valuation for NYSE:EQNR

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:EQNR has achieved a 7 out of 10:

With a Price/Earnings ratio of 5.38, the valuation of EQNR can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of EQNR indicates a somewhat cheap valuation: EQNR is cheaper than 77.27% of the companies listed in the same industry.
EQNR is valuated cheaply when we compare the Price/Earnings ratio to 23.21, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.43, which indicates a rather cheap valuation of EQNR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EQNR indicates a somewhat cheap valuation: EQNR is cheaper than 69.55% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 18.62, EQNR is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, EQNR is valued cheaply inside the industry as 99.09% of the companies are valued more expensively.
EQNR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EQNR is cheaper than 80.00% of the companies in the same industry.
EQNR has a very decent profitability rating, which may justify a higher PE ratio.

Exploring NYSE:EQNR's Profitability

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

EQNR has a Return On Assets of 17.18%. This is in the better half of the industry: EQNR outperforms 74.55% of its industry peers.
The Return On Equity of EQNR (48.40%) is better than 86.82% of its industry peers.
Looking at the Return On Invested Capital, with a value of 43.91%, EQNR belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
The last Return On Invested Capital (43.91%) for EQNR is above the 3 year average (26.14%), which is a sign of increasing profitability.
In the last couple of years the Profit Margin of EQNR has grown nicely.
Looking at the Operating Margin, with a value of 46.31%, EQNR is in the better half of the industry, outperforming 78.18% of the companies in the same industry.
EQNR's Operating Margin has improved in the last couple of years.
In the last couple of years the Gross Margin of EQNR has grown nicely.

Unpacking NYSE:EQNR's Health Rating

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:EQNR has earned a 8 out of 10:

EQNR has an Altman-Z score of 3.79. This indicates that EQNR is financially healthy and has little risk of bankruptcy at the moment.
EQNR has a Altman-Z score of 3.79. This is amongst the best in the industry. EQNR outperforms 80.45% of its industry peers.
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's Debt to FCF ratio of 1.70 is fine compared to the rest of the industry. EQNR outperforms 74.09% 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.
The Current ratio of EQNR (1.84) is better than 73.64% of its industry peers.
With a decent Quick ratio value of 1.73, EQNR is doing good in the industry, outperforming 73.64% of the companies in the same industry.

A Closer Look at Growth for NYSE:EQNR

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:EQNR has achieved a 4 out of 10:

The Earnings Per Share has grown by an nice 9.42% over the past year.
Measured over the past years, EQNR shows a very strong growth in Earnings Per Share. The EPS has been growing by 38.60% on average per year.
Measured over the past years, EQNR shows a quite strong growth in Revenue. The Revenue has been growing by 19.57% on average per year.

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Our latest full fundamental report of EQNR contains the most current fundamental analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.