EQUINOR ASA (EQNR.OL) Stock Fundamental Analysis
OSL:EQNR - Oslo Bors ASA - NO0010096985 - Common Stock - Currency: NOK
Overall EQNR gets a fundamental rating of 6 out of 10. We evaluated EQNR against 62 industry peers in the Oil, Gas & Consumable Fuels industry. While EQNR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. EQNR has a bad growth rate and is valued cheaply. These ratings would make EQNR suitable for value investing!
1. Profitability
1.1 Basic Checks
EQNR had positive earnings in the past year.
EQNR had a positive operating cash flow in the past year.
Of the past 5 years EQNR 4 years were profitable.
Each year in the past 5 years EQNR had a positive operating cash flow.
1.2 Ratios
EQNR's Return On Assets of 6.97% is fine compared to the rest of the industry. EQNR outperforms 61.67% of its industry peers.
EQNR has a better Return On Equity (21.23%) than 66.67% of its industry peers.
EQNR's Return On Invested Capital of 23.48% is amongst the best of the industry. EQNR outperforms 91.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for EQNR is significantly above the industry average of 12.33%.
The last Return On Invested Capital (23.48%) for EQNR is well below the 3 year average (33.17%), which needs to be investigated, but indicates that EQNR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 21.23% | ||
| ROIC | 23.48% |
ROA(3y)10.76%
ROA(5y)5.89%
ROE(3y)33.24%
ROE(5y)17.59%
ROIC(3y)33.17%
ROIC(5y)22.69%
1.3 Margins
EQNR has a Profit Margin (8.98%) which is in line with its industry peers.
In the last couple of years the Profit Margin of EQNR has grown nicely.
The Operating Margin of EQNR (29.68%) is better than 66.67% of its industry peers.
EQNR's Operating Margin has improved in the last couple of years.
EQNR's Gross Margin of 51.36% is in line compared to the rest of the industry. EQNR outperforms 58.33% of its industry peers.
EQNR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.68% | ||
| PM (TTM) | 8.98% | ||
| GM | 51.36% |
OM growth 3Y64.3%
OM growth 5Y6.9%
PM growth 3YN/A
PM growth 5Y3.01%
GM growth 3Y0.48%
GM growth 5Y1.5%
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.
The number of shares outstanding for EQNR has been reduced compared to 1 year ago.
Compared to 5 years ago, EQNR has less shares outstanding
EQNR has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.66 indicates that EQNR is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of EQNR (2.66) is better than 70.00% of its industry peers.
EQNR has a debt to FCF ratio of 3.34. This is a good value and a sign of high solvency as EQNR would need 3.34 years to pay back of all of its debts.
EQNR has a better Debt to FCF ratio (3.34) than 61.67% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that 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 45.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 2.66 |
ROIC/WACC3.68
WACC6.38%
2.3 Liquidity
EQNR has a Current Ratio of 1.48. 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 Current ratio (1.48) which is comparable to the rest of the industry.
EQNR has a Quick Ratio of 1.38. This is a normal value and indicates that EQNR is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.38, EQNR perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The earnings per share for EQNR have decreased strongly by -30.00% 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 11.15% yearly.
EQNR shows a decrease in Revenue. In the last year, the revenue decreased by -6.29%.
Measured over the past years, EQNR shows a small growth in Revenue. The Revenue has been growing by 6.35% on average per year.
EPS 1Y (TTM)-30%
EPS 3Y130.07%
EPS 5Y11.15%
EPS Q2Q%-14.13%
Revenue 1Y (TTM)-6.29%
Revenue growth 3Y32.67%
Revenue growth 5Y6.35%
Sales Q2Q%-1.94%
3.2 Future
EQNR is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -4.98% yearly.
The Revenue is expected to decrease by -4.40% on average over the next years.
EPS Next Y-2.27%
EPS Next 2Y-2.44%
EPS Next 3Y-3.04%
EPS Next 5Y-4.98%
Revenue Next Year-2.66%
Revenue Next 2Y-4.57%
Revenue Next 3Y-3.53%
Revenue Next 5Y-4.4%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.29 indicates a rather cheap valuation of EQNR.
The rest of the industry has a similar Price/Earnings ratio as EQNR.
Compared to an average S&P500 Price/Earnings ratio of 28.47, EQNR is valued rather cheaply.
A Price/Forward Earnings ratio of 7.24 indicates a rather cheap valuation of EQNR.
EQNR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EQNR is cheaper than 66.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 92.74. EQNR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.29 | ||
| Fwd PE | 7.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EQNR is valued cheaply inside the industry as 93.33% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EQNR indicates a somewhat cheap valuation: EQNR is cheaper than 61.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.21 | ||
| EV/EBITDA | 1.04 |
4.3 Compensation for Growth
The excellent profitability rating of EQNR may justify a higher PE ratio.
EQNR's earnings are expected to decrease with -3.04% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.65
EPS Next 2Y-2.44%
EPS Next 3Y-3.04%
5. Dividend
5.1 Amount
EQNR has a Yearly Dividend Yield of 5.81%, which is a nice return.
EQNR's Dividend Yield is a higher than the industry average which is at 60.90.
Compared to an average S&P500 Dividend Yield of 2.28, EQNR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.81% |
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
99.55% of the earnings are spent on dividend by EQNR. This is not a sustainable payout ratio.
The Dividend Rate of EQNR has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP99.55%
EPS Next 2Y-2.44%
EPS Next 3Y-3.04%
EQUINOR ASA
OSL:EQNR (2/5/2025, 4:25:15 PM)
266.35
-11.45 (-4.12%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners18.83%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap725.04B
Analysts66.86
Price Target306.57 (15.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.81% |
Yearly Dividend3.6
Dividend Growth(5Y)34.9%
DP99.55%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)8.98%
Min EPS beat(2)3.9%
Max EPS beat(2)14.06%
EPS beat(4)3
Avg EPS beat(4)4.24%
Min EPS beat(4)-27.01%
Max EPS beat(4)26%
EPS beat(8)6
Avg EPS beat(8)8.83%
EPS beat(12)8
Avg EPS beat(12)7.32%
EPS beat(16)10
Avg EPS beat(16)-8.64%
Revenue beat(2)2
Avg Revenue beat(2)2.76%
Min Revenue beat(2)1.92%
Max Revenue beat(2)3.61%
Revenue beat(4)2
Avg Revenue beat(4)-1.21%
Min Revenue beat(4)-10.13%
Max Revenue beat(4)3.61%
Revenue beat(8)3
Avg Revenue beat(8)-5.98%
Revenue beat(12)7
Avg Revenue beat(12)-2.77%
Revenue beat(16)8
Avg Revenue beat(16)-3.19%
PT rev (1m)1.55%
PT rev (3m)2.57%
EPS NQ rev (1m)-9.88%
EPS NQ rev (3m)-11.35%
EPS NY rev (1m)-1.22%
EPS NY rev (3m)-1.22%
Revenue NQ rev (1m)0.76%
Revenue NQ rev (3m)-9.39%
Revenue NY rev (1m)1.01%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.29 | ||
| Fwd PE | 7.24 | ||
| P/S | 0.61 | ||
| P/FCF | 7.21 | ||
| P/OCF | 3.13 | ||
| P/B | 1.44 | ||
| P/tB | 1.68 | ||
| EV/EBITDA | 1.04 |
EPS(TTM)36.52
EY13.71%
EPS(NY)36.81
Fwd EY13.82%
FCF(TTM)36.93
FCFY13.87%
OCF(TTM)85.1
OCFY31.95%
SpS436.67
BVpS184.78
TBVpS158.41
PEG (NY)N/A
PEG (5Y)0.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 21.23% | ||
| ROCE | 30.49% | ||
| ROIC | 23.48% | ||
| ROICexc | 33.59% | ||
| ROICexgc | 36.86% | ||
| OM | 29.68% | ||
| PM (TTM) | 8.98% | ||
| GM | 51.36% | ||
| FCFM | 8.46% |
ROA(3y)10.76%
ROA(5y)5.89%
ROE(3y)33.24%
ROE(5y)17.59%
ROIC(3y)33.17%
ROIC(5y)22.69%
ROICexc(3y)49.3%
ROICexc(5y)32.78%
ROICexgc(3y)53.16%
ROICexgc(5y)35.52%
ROCE(3y)44.26%
ROCE(5y)30.22%
ROICexcg growth 3Y131.64%
ROICexcg growth 5Y15.23%
ROICexc growth 3Y132.76%
ROICexc growth 5Y16.24%
OM growth 3Y64.3%
OM growth 5Y6.9%
PM growth 3YN/A
PM growth 5Y3.01%
GM growth 3Y0.48%
GM growth 5Y1.5%
F-Score5
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 3.34 | ||
| Debt/EBITDA | 0.55 | ||
| Cap/Depr | 116.53% | ||
| Cap/Sales | 11.03% | ||
| Interest Coverage | 33.85 | ||
| Cash Conversion | 49.78% | ||
| Profit Quality | 94.16% | ||
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 2.66 |
F-Score5
WACC6.38%
ROIC/WACC3.68
Cap/Depr(3y)100.93%
Cap/Depr(5y)87.14%
Cap/Sales(3y)8.25%
Cap/Sales(5y)11.89%
Profit Quality(3y)151.25%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-30%
EPS 3Y130.07%
EPS 5Y11.15%
EPS Q2Q%-14.13%
EPS Next Y-2.27%
EPS Next 2Y-2.44%
EPS Next 3Y-3.04%
EPS Next 5Y-4.98%
Revenue 1Y (TTM)-6.29%
Revenue growth 3Y32.67%
Revenue growth 5Y6.35%
Sales Q2Q%-1.94%
Revenue Next Year-2.66%
Revenue Next 2Y-4.57%
Revenue Next 3Y-3.53%
Revenue Next 5Y-4.4%
EBIT growth 1Y-27.78%
EBIT growth 3Y117.98%
EBIT growth 5Y13.69%
EBIT Next Year5.37%
EBIT Next 3Y-0.36%
EBIT Next 5Y-1.73%
FCF growth 1Y-71.26%
FCF growth 3Y94.83%
FCF growth 5Y11.15%
OCF growth 1Y-47.65%
OCF growth 3Y33.48%
OCF growth 5Y4.63%