EQUINOR ASA (EQNR.OL) Stock Fundamental Analysis
OSL:EQNR - Euronext Oslo - NO0010096985 - Common Stock - Currency: NOK
We assign a fundamental rating of 6 out of 10 to EQNR. EQNR was compared to 59 industry peers in the Oil, Gas & Consumable Fuels industry. EQNR has an excellent profitability rating, but there are some minor concerns on its financial health. EQNR has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
EQNR had positive earnings in the past year.
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 of 6.36%. This is comparable to the rest of the industry: EQNR outperforms 57.63% of its industry peers.
EQNR has a Return On Equity of 19.13%. This is in the better half of the industry: EQNR outperforms 71.19% of its industry peers.
EQNR's Return On Invested Capital of 23.64% is amongst the best of the industry. EQNR outperforms 93.22% 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 14.75%.
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's Profit Margin of 8.21% is in line compared to the rest of the industry. EQNR outperforms 47.46% of its industry peers.
EQNR's Profit Margin has improved in the last couple of years.
EQNR has a better Operating Margin (29.66%) than 67.80% of its industry peers.
In the last couple of years the Operating Margin of EQNR has grown nicely.
EQNR's Gross Margin of 49.85% is in line compared to the rest of the industry. EQNR outperforms 57.63% of its industry peers.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EQNR 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 2.62 indicates that EQNR is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.62, EQNR is doing good in the industry, outperforming 71.19% of the companies in the same industry.
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 66.10% of the companies in the same industry.
A Debt/Equity ratio of 0.50 indicates that EQNR is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.50, EQNR is in line with its industry, outperforming 42.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.02 | ||
| Altman-Z | 2.62 |
ROIC/WACC3.39
WACC6.97%
2.3 Liquidity
A Current Ratio of 1.37 indicates that EQNR should not have too much problems paying its short term obligations.
With a Current ratio value of 1.37, EQNR perfoms like the industry average, outperforming 50.85% of the companies in the same industry.
EQNR has a Quick Ratio of 1.27. 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 decent Quick ratio value of 1.27, EQNR is doing good in the industry, outperforming 61.02% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 16.82% on average over the past years. This is quite good.
EQNR shows a small growth in Revenue. In the last year, the Revenue has grown by 3.96%.
The Revenue has been growing by 10.24% on average over the past years. This is quite good.
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
EQNR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.85% yearly.
The Revenue is expected to decrease by -4.76% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
The Price/Earnings ratio is 8.05, which indicates a very decent valuation of EQNR.
Compared to the rest of the industry, the Price/Earnings ratio of EQNR indicates a somewhat cheap valuation: EQNR is cheaper than 67.80% of the companies listed in the same industry.
EQNR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.19.
The Price/Forward Earnings ratio is 7.07, which indicates a rather cheap valuation of EQNR.
Based on the Price/Forward Earnings ratio, EQNR is valued a bit cheaper than 72.88% of the companies in the same industry.
EQNR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.05 | ||
| Fwd PE | 7.07 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EQNR indicates a rather cheap valuation: EQNR is cheaper than 93.22% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, EQNR is valued a bit cheaper than the industry average as 64.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.59 | ||
| EV/EBITDA | 1.26 |
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)1.83
PEG (5Y)0.48
EPS Next 2Y1.65%
EPS Next 3Y1.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.89%, EQNR is a good candidate for dividend investing.
EQNR's Dividend Yield is a higher than the industry average which is at 60.24.
EQNR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.89% |
5.2 History
On average, the dividend of EQNR grows each year by 24.62%, which is quite nice.
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.
The dividend of EQNR is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP89.44%
EPS Next 2Y1.65%
EPS Next 3Y1.88%
OSL:EQNR (5/30/2025, 4:26:15 PM)
239.5
-5 (-2.04%)
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 Cap648.05B
Analysts70.59
Price Target282.99 (18.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.89% |
Yearly Dividend30.77
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)-9.64%
PT rev (3m)-10.15%
EPS NQ rev (1m)-19.86%
EPS NQ rev (3m)-18.77%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.33%
Revenue NQ rev (1m)-5.25%
Revenue NQ rev (3m)-0.69%
Revenue NY rev (1m)-1.27%
Revenue NY rev (3m)-2.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.05 | ||
| Fwd PE | 7.07 | ||
| P/S | 0.6 | ||
| P/FCF | 8.59 | ||
| P/OCF | 3.16 | ||
| P/B | 1.39 | ||
| P/tB | 1.61 | ||
| EV/EBITDA | 1.26 |
EPS(TTM)29.74
EY12.42%
EPS(NY)33.88
Fwd EY14.15%
FCF(TTM)27.88
FCFY11.64%
OCF(TTM)75.76
OCFY31.63%
SpS401.93
BVpS172.44
TBVpS149.02
PEG (NY)1.83
PEG (5Y)0.48
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 | 2.62 |
F-Score6
WACC6.97%
ROIC/WACC3.39
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%