EQUINOR ASA-SPON ADR (NYSE:EQNR) – A GARP Candidate in the Energy Sector

EQUINOR ASA-SPON ADR (NYSE:EQNR) surfaced in our Peter Lynch-inspired stock screen, which identifies companies with steady growth, reasonable valuations, and strong financial health. The Norwegian energy company, known for its oil, gas, and renewable operations, fits the criteria for long-term investors seeking growth at a reasonable price (GARP).

Why EQNR Fits the Peter Lynch Strategy

• Sustainable Growth: EQNR’s 5-year EPS growth of 16.8% falls within Lynch’s preferred range (15%-30%), indicating steady but not overheated expansion.
• Attractive Valuation: With a PEG ratio of 0.53 (well below 1), the stock is priced favorably relative to its growth. The P/E ratio of 8.97 also suggests undervaluation compared to industry peers.
• Strong Profitability: The company’s return on equity (ROE) of 19.1% exceeds Lynch’s 15% threshold, reflecting efficient use of shareholder capital.
• Healthy Balance Sheet: A debt-to-equity ratio of 0.50 and a current ratio of 1.37 demonstrate financial stability, aligning with Lynch’s preference for conservatively financed firms.

Fundamental Highlights

EQNR’s financial health is solid, with high marks for profitability and a reasonable dividend yield of 5.7%. However, its payout ratio is elevated, raising some sustainability concerns. The company’s revenue growth has been steady, though near-term projections suggest a slowdown.

For a deeper dive, review the full fundamental analysis of EQNR.

Our Peter Lynch Strategy screener lists more stocks meeting these criteria and is updated regularly.

Disclaimer

This is not investing advice. The observations here are based on data available at the time of writing. Always conduct your own research before making investment decisions.