EQUINOR ASA (EQNR.OL) Stock Fundamental Analysis
OSL:EQNR - Euronext Oslo - 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. EQNR scores excellent on profitability, but there are some minor concerns on its financial health. EQNR is valued correctly, 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.
EQNR had positive earnings in 4 of the past 5 years.
Each year in the past 5 years EQNR had a positive operating cash flow.
1.2 Ratios
EQNR has a Return On Assets of 6.36%. This is in the better half of the industry: EQNR outperforms 61.29% of its industry peers.
Looking at the Return On Equity, with a value of 19.13%, EQNR is in the better half of the industry, outperforming 70.97% of the companies in the same industry.
EQNR has a better Return On Invested Capital (23.64%) than 93.55% of its industry peers.
EQNR had an Average Return On Invested Capital over the past 3 years of 33.07%. This is significantly above the industry average of 14.65%.
The 3 year average ROIC (33.07%) for EQNR is well above the current ROIC(23.64%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.36% | ||
| ROE | 19.13% | ||
| ROIC | 23.64% |
ROA(3y)11.06%
ROA(5y)6.92%
ROE(3y)32.85%
ROE(5y)20.85%
ROIC(3y)33.07%
ROIC(5y)25.09%
1.3 Margins
EQNR has a Profit Margin (8.21%) 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 (29.66%) is better than 69.35% of its industry peers.
EQNR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 49.85%, EQNR is in line with its industry, outperforming 58.06% 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 | 29.66% | ||
| PM (TTM) | 8.21% | ||
| GM | 49.85% |
OM growth 3Y-8.57%
OM growth 5Y5.15%
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.
EQNR has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, EQNR has less shares outstanding
The debt/assets ratio for EQNR is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.64 indicates that EQNR is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of EQNR (2.64) is better than 69.35% of its industry peers.
The Debt to FCF ratio of EQNR is 4.02, which is a neutral value as it means it would take EQNR, 4.02 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.02, EQNR is in the better half of the industry, outperforming 67.74% of the companies in the same industry.
A Debt/Equity ratio of 0.50 indicates that EQNR is not too dependend on debt financing.
The Debt to Equity ratio of EQNR (0.50) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.02 | ||
| Altman-Z | 2.64 |
ROIC/WACC2.82
WACC8.37%
2.3 Liquidity
EQNR has a Current Ratio of 1.37. 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 1.37, EQNR is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 1.27 indicates that EQNR should not have too much problems paying its short term obligations.
EQNR's Quick ratio of 1.27 is in line compared to the rest of the industry. EQNR outperforms 59.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
The earnings per share for EQNR have decreased strongly by -10.15% 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.
Looking at the last year, EQNR shows a small growth in Revenue. The Revenue has grown by 3.96% in the last year.
EQNR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.24% yearly.
EPS 1Y (TTM)-10.15%
EPS 3Y-2.27%
EPS 5Y16.82%
EPS Q2Q%-31.25%
Revenue 1Y (TTM)3.96%
Revenue growth 3Y4.92%
Revenue growth 5Y10.24%
Sales Q2Q%17.12%
3.2 Future
Based on estimates for the next years, EQNR will show a small growth in Earnings Per Share. The EPS will grow by 4.85% on average per year.
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 Y4.4%
EPS Next 2Y1.65%
EPS Next 3Y1.88%
EPS Next 5Y4.85%
Revenue Next Year-5.64%
Revenue Next 2Y-4.34%
Revenue Next 3Y-3%
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
Based on the Price/Earnings ratio of 8.67, the valuation of EQNR can be described as reasonable.
Based on the Price/Earnings ratio, EQNR is valued a bit cheaper than 72.58% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.15. EQNR is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.61 indicates a rather cheap valuation of EQNR.
75.81% of the companies in the same industry are more expensive than EQNR, based on the Price/Forward Earnings ratio.
EQNR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.67 | ||
| Fwd PE | 7.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EQNR is valued cheaply inside the industry as 93.55% of the companies are valued more expensively.
67.74% of the companies in the same industry are more expensive than EQNR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.24 | ||
| EV/EBITDA | 1.35 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of EQNR may justify a higher PE ratio.
PEG (NY)1.97
PEG (5Y)0.52
EPS Next 2Y1.65%
EPS Next 3Y1.88%
5. Dividend
5.1 Amount
EQNR has a Yearly Dividend Yield of 5.87%, which is a nice return.
EQNR's Dividend Yield is a higher than the industry average which is at 56.55.
Compared to an average S&P500 Dividend Yield of 2.42, EQNR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.87% |
5.2 History
The dividend of EQNR is nicely growing with an annual growth rate of 24.62%!
Dividend Growth(5Y)24.62%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
89.44% of the earnings are spent on dividend by EQNR. This is not a sustainable payout ratio.
EQNR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP89.44%
EPS Next 2Y1.65%
EPS Next 3Y1.88%
OSL:EQNR (6/30/2025, 4:26:15 PM)
255.1
+0.4 (+0.16%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners18.35%
Inst Owner ChangeN/A
Ins Owners0%
Ins Owner ChangeN/A
Market Cap689.94B
Analysts65.88
Price Target271.47 (6.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.87% |
Yearly Dividend30.41
Dividend Growth(5Y)24.62%
DP89.44%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-17.95%
Min EPS beat(2)-23.64%
Max EPS beat(2)-12.26%
EPS beat(4)2
Avg EPS beat(4)-4.48%
Min EPS beat(4)-23.64%
Max EPS beat(4)14.06%
EPS beat(8)4
Avg EPS beat(8)-1.4%
EPS beat(12)7
Avg EPS beat(12)2.45%
EPS beat(16)9
Avg EPS beat(16)3.24%
Revenue beat(2)1
Avg Revenue beat(2)5.49%
Min Revenue beat(2)-0.15%
Max Revenue beat(2)11.14%
Revenue beat(4)3
Avg Revenue beat(4)4.13%
Min Revenue beat(4)-0.15%
Max Revenue beat(4)11.14%
Revenue beat(8)4
Avg Revenue beat(8)-0.67%
Revenue beat(12)6
Avg Revenue beat(12)-2.59%
Revenue beat(16)9
Avg Revenue beat(16)-1.81%
PT rev (1m)-4.07%
PT rev (3m)-13.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-22.15%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.67 | ||
| Fwd PE | 7.61 | ||
| P/S | 0.64 | ||
| P/FCF | 9.24 | ||
| P/OCF | 3.4 | ||
| P/B | 1.49 | ||
| P/tB | 1.73 | ||
| EV/EBITDA | 1.35 |
EPS(TTM)29.42
EY11.53%
EPS(NY)33.52
Fwd EY13.14%
FCF(TTM)27.6
FCFY10.82%
OCF(TTM)74.99
OCFY29.4%
SpS397.84
BVpS170.69
TBVpS147.51
PEG (NY)1.97
PEG (5Y)0.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.36% | ||
| ROE | 19.13% | ||
| ROCE | 30.7% | ||
| ROIC | 23.64% | ||
| ROICexc | 31.14% | ||
| ROICexgc | 33.82% | ||
| OM | 29.66% | ||
| PM (TTM) | 8.21% | ||
| GM | 49.85% | ||
| FCFM | 6.94% |
ROA(3y)11.06%
ROA(5y)6.92%
ROE(3y)32.85%
ROE(5y)20.85%
ROIC(3y)33.07%
ROIC(5y)25.09%
ROICexc(3y)47.97%
ROICexc(5y)36.11%
ROICexgc(3y)51.61%
ROICexgc(5y)38.95%
ROCE(3y)44.19%
ROCE(5y)33.64%
ROICexcg growth 3Y-4.45%
ROICexcg growth 5Y16.65%
ROICexc growth 3Y-4.1%
ROICexc growth 5Y18%
OM growth 3Y-8.57%
OM growth 5Y5.15%
PM growth 3Y-3.8%
PM growth 5Y23.92%
GM growth 3Y-5.36%
GM growth 5Y-0.73%
F-Score6
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.02 | ||
| Debt/EBITDA | 0.55 | ||
| Cap/Depr | 129.94% | ||
| Cap/Sales | 11.91% | ||
| Interest Coverage | 41.95 | ||
| Cash Conversion | 48.55% | ||
| Profit Quality | 84.52% | ||
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 2.64 |
F-Score6
WACC8.37%
ROIC/WACC2.82
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)-10.15%
EPS 3Y-2.27%
EPS 5Y16.82%
EPS Q2Q%-31.25%
EPS Next Y4.4%
EPS Next 2Y1.65%
EPS Next 3Y1.88%
EPS Next 5Y4.85%
Revenue 1Y (TTM)3.96%
Revenue growth 3Y4.92%
Revenue growth 5Y10.24%
Sales Q2Q%17.12%
Revenue Next Year-5.64%
Revenue Next 2Y-4.34%
Revenue Next 3Y-3%
Revenue Next 5Y-4.76%
EBIT growth 1Y-1.64%
EBIT growth 3Y-4.07%
EBIT growth 5Y15.92%
EBIT Next Year29.75%
EBIT Next 3Y6.16%
EBIT Next 5Y3.26%
FCF growth 1Y-70.95%
FCF growth 3Y-27.45%
FCF growth 5Y17.48%
OCF growth 1Y-41.2%
OCF growth 3Y-11.3%
OCF growth 5Y7.9%