EQUINOR ASA-SPON ADR (EQNR) Stock Fundamental Analysis
NYSE:EQNR - New York Stock Exchange, Inc. - US29446M1027 - ADR - Currency: USD
We assign a fundamental rating of 6 out of 10 to EQNR. EQNR was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. While EQNR has a great profitability rating, 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
EQNR had positive earnings in the past year.
In the past year EQNR had a positive cash flow from operations.
EQNR had positive earnings in 4 of the past 5 years.
In the past 5 years EQNR always reported a positive cash flow from operatings.
1.2 Ratios
EQNR has a better Return On Assets (6.36%) than 68.54% of its industry peers.
The Return On Equity of EQNR (19.13%) is better than 83.10% of its industry peers.
EQNR has a Return On Invested Capital of 24.25%. This is amongst the best in the industry. EQNR outperforms 97.18% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EQNR is significantly above the industry average of 23.55%.
The last Return On Invested Capital (24.25%) for EQNR is well below the 3 year average (33.92%), which needs to be investigated, but indicates that EQNR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.36% | ||
| ROE | 19.13% | ||
| ROIC | 24.25% |
ROA(3y)11.06%
ROA(5y)6.92%
ROE(3y)32.85%
ROE(5y)20.85%
ROIC(3y)33.92%
ROIC(5y)25.74%
1.3 Margins
Looking at the Profit Margin, with a value of 8.21%, EQNR is in line with its industry, outperforming 52.11% of the companies in the same industry.
EQNR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 29.66%, EQNR is in the better half of the industry, outperforming 69.48% of the companies in the same industry.
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 57.75% of the companies in the same industry.
In the last couple of years the Gross Margin of EQNR has remained more or less at the same level.
| 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.
Compared to 1 year ago, EQNR has less shares outstanding
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 2.69 indicates that EQNR is not a great score, but indicates only limited risk for bankruptcy at the moment.
EQNR has a Altman-Z score of 2.69. This is in the better half of the industry: EQNR outperforms 78.40% 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.
The Debt to FCF ratio of EQNR (4.02) is better than 70.42% of its industry peers.
EQNR has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
EQNR has a Debt to Equity ratio (0.50) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.02 | ||
| Altman-Z | 2.69 |
ROIC/WACC3.4
WACC7.14%
2.3 Liquidity
A Current Ratio of 1.37 indicates that EQNR should not have too much problems paying its short term obligations.
EQNR's Current ratio of 1.37 is fine compared to the rest of the industry. EQNR outperforms 61.97% of its industry peers.
A Quick Ratio of 1.27 indicates that EQNR should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.27, EQNR is doing good in the industry, outperforming 65.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.37 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
EQNR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.15%.
Measured over the past years, EQNR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.82% on average per year.
EQNR shows a small growth in Revenue. In the last year, the Revenue has grown by 3.96%.
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
EQNR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.03% yearly.
EQNR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.76% yearly.
EPS Next Y4.4%
EPS Next 2Y1.65%
EPS Next 3Y1.88%
EPS Next 5Y5.03%
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.
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
A Price/Earnings ratio of 9.39 indicates a reasonable valuation of EQNR.
76.06% of the companies in the same industry are more expensive than EQNR, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.32, EQNR is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.26, the valuation of EQNR can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EQNR indicates a somewhat cheap valuation: EQNR is cheaper than 78.40% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of EQNR to the average of the S&P500 Index (22.13), we can say EQNR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.39 | ||
| Fwd PE | 8.26 |
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 98.59% of the companies listed 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 74.65% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.08 | ||
| EV/EBITDA | 1.51 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates EQNR does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of EQNR may justify a higher PE ratio.
PEG (NY)2.14
PEG (5Y)0.56
EPS Next 2Y1.65%
EPS Next 3Y1.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.64%, EQNR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.56, EQNR pays a bit more dividend than its industry peers.
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 | 5.64% |
5.2 History
The dividend of EQNR is nicely growing with an annual growth rate of 24.62%!
EQNR has paid a dividend for at least 10 years, which is a reliable track record.
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%
NYSE:EQNR (6/16/2025, 3:58:06 PM)
27.615
-0.14 (-0.49%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners18.35%
Inst Owner Change6.55%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap74.69B
Analysts65.88
Price Target26.26 (-4.91%)
Short Float %2.46%
Short Ratio5.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.64% |
Yearly Dividend3.02
Dividend Growth(5Y)24.62%
DP89.44%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)-2.58%
Revenue beat(16)9
Avg Revenue beat(16)-1.81%
PT rev (1m)-3.01%
PT rev (3m)-8.34%
EPS NQ rev (1m)-3.41%
EPS NQ rev (3m)-22.59%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-1.89%
Revenue NQ rev (1m)3.09%
Revenue NQ rev (3m)-7.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.39 | ||
| Fwd PE | 8.26 | ||
| P/S | 0.7 | ||
| P/FCF | 10.08 | ||
| P/OCF | 3.71 | ||
| P/B | 1.63 | ||
| P/tB | 1.89 | ||
| EV/EBITDA | 1.51 |
EPS(TTM)2.94
EY10.65%
EPS(NY)3.34
Fwd EY12.11%
FCF(TTM)2.74
FCFY9.92%
OCF(TTM)7.44
OCFY26.95%
SpS39.49
BVpS16.94
TBVpS14.64
PEG (NY)2.14
PEG (5Y)0.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.36% | ||
| ROE | 19.13% | ||
| ROCE | 30.7% | ||
| ROIC | 24.25% | ||
| ROICexc | 31.95% | ||
| ROICexgc | 34.7% | ||
| 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)33.92%
ROIC(5y)25.74%
ROICexc(3y)49.22%
ROICexc(5y)37.05%
ROICexgc(3y)52.95%
ROICexgc(5y)39.96%
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 | 2.69 |
F-Score6
WACC7.14%
ROIC/WACC3.4
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 5Y5.03%
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%