EQUINOR ASA (EQNR.OL) Stock Fundamental Analysis
OSL:EQNR - Euronext Oslo - NO0010096985 - Common Stock - Currency: NOK
We assign a fundamental rating of 5 out of 10 to EQNR. EQNR was compared to 62 industry peers in the Oil, Gas & Consumable Fuels industry. Both the profitability and the financial health of EQNR get a neutral evaluation. Nothing too spectacular is happening here. EQNR is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year EQNR was profitable.
In the past year EQNR had a positive cash flow from operations.
Of the past 5 years EQNR 4 years were profitable.
EQNR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EQNR has a Return On Assets (6.72%) which is comparable to the rest of the industry.
EQNR's Return On Equity of 20.80% is fine compared to the rest of the industry. EQNR outperforms 71.43% of its industry peers.
The Return On Invested Capital of EQNR (24.79%) is better than 92.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.72% | ||
| ROE | 20.8% | ||
| ROIC | 24.79% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 8.59%, EQNR perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
EQNR's Profit Margin has improved in the last couple of years.
EQNR has a better Operating Margin (30.19%) than 68.25% of its industry peers.
EQNR's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 51.18%, EQNR is doing good in the industry, outperforming 60.32% of the companies in the same industry.
EQNR's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.19% | ||
| PM (TTM) | 8.59% | ||
| GM | 51.18% |
OM growth 3Y-8.38%
OM growth 5Y5.28%
PM growth 3Y-3.8%
PM growth 5Y23.92%
GM growth 3Y-5.36%
GM growth 5Y-0.73%
2. Health
2.1 Basic Checks
EQNR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
There is no outstanding debt for EQNR. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
The Debt to FCF ratio of EQNR is 3.79, which is a good value as it means it would take EQNR, 3.79 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.79, EQNR is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
EQNR has a Debt/Equity ratio of 0.51. This is a neutral value indicating EQNR is somewhat dependend on debt financing.
EQNR has a Debt to Equity ratio of 0.51. This is comparable to the rest of the industry: EQNR outperforms 49.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.79 | ||
| Altman-Z | N/A |
ROIC/WACC3.23
WACC7.68%
2.3 Liquidity
EQNR has a Current Ratio of 1.31. This is a normal value and indicates that EQNR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.31, EQNR is in line with its industry, outperforming 47.62% of the companies in the same industry.
EQNR has a Quick Ratio of 1.20. This is a normal value and indicates that EQNR is financially healthy and should not expect problems in meeting its short term obligations.
EQNR has a Quick ratio (1.20) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The earnings per share for EQNR have decreased by -5.57% in the last year.
EQNR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.82% yearly.
EQNR shows a decrease in Revenue. In the last year, the revenue decreased by -4.07%.
The Revenue has been growing by 10.24% on average over the past years. This is quite good.
EPS 1Y (TTM)-5.57%
EPS 3Y-2.27%
EPS 5Y16.82%
EPS Q2Q%0%
Revenue 1Y (TTM)-4.07%
Revenue growth 3Y4.92%
Revenue growth 5Y10.24%
Sales Q2Q%-2.91%
3.2 Future
The Earnings Per Share is expected to grow by 4.85% on average over the next years.
Based on estimates for the next years, EQNR will show a decrease in Revenue. The Revenue will decrease by -4.76% on average per year.
EPS Next Y5.8%
EPS Next 2Y3.05%
EPS Next 3Y2.15%
EPS Next 5Y4.85%
Revenue Next Year-3.1%
Revenue Next 2Y-2.64%
Revenue Next 3Y-1.17%
Revenue Next 5Y-4.76%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.23, which indicates a rather cheap valuation of EQNR.
Based on the Price/Earnings ratio, EQNR is valued a bit cheaper than the industry average as 68.25% of the companies are valued more expensively.
EQNR is valuated cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 6.84, which indicates a rather cheap valuation of EQNR.
Based on the Price/Forward Earnings ratio, EQNR is valued a bit cheaper than 74.60% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. EQNR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.23 | ||
| Fwd PE | 6.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EQNR is valued cheaper than 92.06% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EQNR indicates a somewhat cheap valuation: EQNR is cheaper than 69.84% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.97 | ||
| EV/EBITDA | 1.34 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of EQNR may justify a higher PE ratio.
PEG (NY)1.25
PEG (5Y)0.43
EPS Next 2Y3.05%
EPS Next 3Y2.15%
5. Dividend
5.1 Amount
EQNR has a Yearly Dividend Yield of 6.36%, which is a nice return.
Compared to an average industry Dividend Yield of 60.92, EQNR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, EQNR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.36% |
5.2 History
On average, the dividend of EQNR grows each year by 34.90%, which is quite nice.
Dividend Growth(5Y)34.9%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
EQNR pays out 97.40% of its income as dividend. This is not a sustainable payout ratio.
The dividend of EQNR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP97.4%
EPS Next 2Y3.05%
EPS Next 3Y2.15%
OSL:EQNR (3/7/2025, 7:00:00 PM)
252.25
+9.6 (+3.96%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners18.82%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap685.09B
Analysts72.57
Price Target315.34 (25.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.36% |
Yearly Dividend38.94
Dividend Growth(5Y)34.9%
DP97.4%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.18%
Min EPS beat(2)-12.26%
Max EPS beat(2)3.9%
EPS beat(4)3
Avg EPS beat(4)7.93%
Min EPS beat(4)-12.26%
Max EPS beat(4)26%
EPS beat(8)5
Avg EPS beat(8)2.76%
EPS beat(12)7
Avg EPS beat(12)4.39%
EPS beat(16)10
Avg EPS beat(16)5.07%
Revenue beat(2)2
Avg Revenue beat(2)4.06%
Min Revenue beat(2)3.61%
Max Revenue beat(2)4.52%
Revenue beat(4)3
Avg Revenue beat(4)-0.02%
Min Revenue beat(4)-10.13%
Max Revenue beat(4)4.52%
Revenue beat(8)4
Avg Revenue beat(8)-3.08%
Revenue beat(12)7
Avg Revenue beat(12)-2.93%
Revenue beat(16)9
Avg Revenue beat(16)-2.61%
PT rev (1m)2.86%
PT rev (3m)6.35%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.45%
EPS NY rev (1m)4.97%
EPS NY rev (3m)5.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.13%
Revenue NY rev (1m)3.26%
Revenue NY rev (3m)5.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.23 | ||
| Fwd PE | 6.84 | ||
| P/S | 0.62 | ||
| P/FCF | 7.97 | ||
| P/OCF | 3.15 | ||
| P/B | 1.49 | ||
| P/tB | 1.72 | ||
| EV/EBITDA | 1.34 |
EPS(TTM)34.88
EY13.83%
EPS(NY)36.9
Fwd EY14.63%
FCF(TTM)31.64
FCFY12.54%
OCF(TTM)80.2
OCFY31.79%
SpS408.77
BVpS168.86
TBVpS146.31
PEG (NY)1.25
PEG (5Y)0.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.72% | ||
| ROE | 20.8% | ||
| ROCE | 32.2% | ||
| ROIC | 24.79% | ||
| ROICexc | 32.79% | ||
| ROICexgc | 35.56% | ||
| OM | 30.19% | ||
| PM (TTM) | 8.59% | ||
| GM | 51.18% | ||
| FCFM | 7.74% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-8.38%
OM growth 5Y5.28%
PM growth 3Y-3.8%
PM growth 5Y23.92%
GM growth 3Y-5.36%
GM growth 5Y-0.73%
F-Score6
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.79 | ||
| Debt/EBITDA | 0.53 | ||
| Cap/Depr | 122.93% | ||
| Cap/Sales | 11.88% | ||
| Interest Coverage | 34.73 | ||
| Cash Conversion | 49.23% | ||
| Profit Quality | 90.08% | ||
| Current Ratio | 1.31 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | N/A |
F-Score6
WACC7.68%
ROIC/WACC3.23
Cap/Depr(3y)119.04%
Cap/Depr(5y)96.27%
Cap/Sales(3y)9.19%
Cap/Sales(5y)11.03%
Profit Quality(3y)100.41%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.57%
EPS 3Y-2.27%
EPS 5Y16.82%
EPS Q2Q%0%
EPS Next Y5.8%
EPS Next 2Y3.05%
EPS Next 3Y2.15%
EPS Next 5Y4.85%
Revenue 1Y (TTM)-4.07%
Revenue growth 3Y4.92%
Revenue growth 5Y10.24%
Sales Q2Q%-2.91%
Revenue Next Year-3.1%
Revenue Next 2Y-2.64%
Revenue Next 3Y-1.17%
Revenue Next 5Y-4.76%
EBIT growth 1Y-16.56%
EBIT growth 3Y-3.87%
EBIT growth 5Y16.06%
EBIT Next Year28.79%
EBIT Next 3Y4.24%
EBIT Next 5Y4.76%
FCF growth 1Y-43.84%
FCF growth 3Y-27.45%
FCF growth 5Y17.48%
OCF growth 1Y-18.59%
OCF growth 3Y-11.3%
OCF growth 5Y7.9%