EQUINOR ASA-SPON ADR (EQNR) Stock Fundamental Analysis
USA - NYSE:EQNR - US29446M1027 - ADR
23.08 USD
-0.44 (-1.87%)
23.29 USD
+0.21 (+0.91%)
We assign a fundamental rating of 6 out of 10 to EQNR. EQNR was compared to 211 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 may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make EQNR a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year EQNR was profitable.
EQNR had a positive operating cash flow in the past year.
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
With a decent Return On Assets value of 5.91%, EQNR is doing good in the industry, outperforming 66.82% of the companies in the same industry.
EQNR's Return On Equity of 19.60% is amongst the best of the industry. EQNR outperforms 85.78% of its industry peers.
EQNR has a better Return On Invested Capital (23.74%) than 97.16% 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 21.53%.
The 3 year average ROIC (33.92%) for EQNR is well above the current ROIC(23.74%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.91% | ||
| ROE | 19.6% | ||
| ROIC | 23.74% |
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
EQNR has a Profit Margin (7.72%) which is in line with its industry peers.
In the last couple of years the Profit Margin of EQNR has grown nicely.
With a decent Operating Margin value of 28.86%, EQNR is doing good in the industry, outperforming 70.62% of the companies in the same industry.
EQNR's Operating Margin has improved in the last couple of years.
EQNR has a Gross Margin of 49.13%. This is comparable to the rest of the industry: EQNR outperforms 58.29% of its industry peers.
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 | 28.86% | ||
| PM (TTM) | 7.72% | ||
| GM | 49.13% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EQNR is creating value.
EQNR has less shares outstanding than it did 1 year ago.
The number of shares outstanding for EQNR has been reduced compared to 5 years ago.
EQNR has a worse debt/assets ratio than last year.
2.2 Solvency
EQNR has an Altman-Z score of 2.42. This is not the best score and indicates that EQNR is in the grey zone with still only limited risk for bankruptcy at the moment.
EQNR has a better Altman-Z score (2.42) than 72.51% of its industry peers.
The Debt to FCF ratio of EQNR is 4.39, which is a neutral value as it means it would take EQNR, 4.39 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.39, EQNR is in the better half of the industry, outperforming 67.30% of the companies in the same industry.
A Debt/Equity ratio of 0.58 indicates that EQNR is somewhat dependend on debt financing.
The Debt to Equity ratio of EQNR (0.58) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.39 | ||
| Altman-Z | 2.42 |
ROIC/WACC3.46
WACC6.86%
2.3 Liquidity
A Current Ratio of 1.23 indicates that EQNR should not have too much problems paying its short term obligations.
With a Current ratio value of 1.23, EQNR perfoms like the industry average, outperforming 54.98% of the companies in the same industry.
EQNR has a Quick Ratio of 1.12. 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 1.12, EQNR perfoms like the industry average, outperforming 58.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The earnings per share for EQNR have decreased strongly by -18.81% in the last year.
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.
Looking at the last year, EQNR shows a small growth in Revenue. The Revenue has grown by 1.09% in the last year.
Measured over the past years, EQNR shows a quite strong growth in Revenue. The Revenue has been growing by 10.24% on average per year.
EPS 1Y (TTM)-18.81%
EPS 3Y-2.27%
EPS 5Y16.82%
EPS Q2Q%-23.81%
Revenue 1Y (TTM)1.09%
Revenue growth 3Y4.92%
Revenue growth 5Y10.24%
Sales Q2Q%-1.54%
3.2 Future
The Earnings Per Share is expected to grow by 10.92% on average over the next years. This is quite good.
EQNR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.76% yearly.
EPS Next Y-7.52%
EPS Next 2Y-2.69%
EPS Next 3Y0.5%
EPS Next 5Y10.92%
Revenue Next Year-1.17%
Revenue Next 2Y-2.57%
Revenue Next 3Y-1.3%
Revenue Next 5Y-4.76%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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 8.13, the valuation of EQNR can be described as reasonable.
Based on the Price/Earnings ratio, EQNR is valued cheaply inside the industry as 82.46% of the companies are valued more expensively.
EQNR is valuated cheaply when we compare the Price/Earnings ratio to 27.50, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.25, the valuation of EQNR can be described as very cheap.
EQNR's Price/Forward Earnings ratio is rather cheap when compared to the industry. EQNR is cheaper than 85.31% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.99. EQNR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.13 | ||
| Fwd PE | 7.25 |
4.2 Price Multiples
EQNR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. EQNR is cheaper than 98.58% of the companies in the same industry.
EQNR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EQNR is cheaper than 83.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.43 | ||
| EV/EBITDA | 1.31 |
4.3 Compensation for Growth
The excellent profitability rating of EQNR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.48
EPS Next 2Y-2.69%
EPS Next 3Y0.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.04%, EQNR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.15, EQNR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, EQNR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.04% |
5.2 History
On average, the dividend of EQNR grows each year by 24.62%, which is quite nice.
EQNR has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)24.62%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
EQNR pays out 82.65% of its income as dividend. 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.
DP82.65%
EPS Next 2Y-2.69%
EPS Next 3Y0.5%
23.08
-0.44 (-1.87%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners21.2%
Inst Owner Change-0.01%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap58.16B
Analysts53.33
Price Target26.19 (13.47%)
Short Float %4.57%
Short Ratio7.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.04% |
Yearly Dividend3.02
Dividend Growth(5Y)24.62%
DP82.65%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-12.36%
Min EPS beat(2)-23.66%
Max EPS beat(2)-1.06%
EPS beat(4)1
Avg EPS beat(4)-8.27%
Min EPS beat(4)-23.66%
Max EPS beat(4)3.9%
EPS beat(8)4
Avg EPS beat(8)-0.52%
EPS beat(12)7
Avg EPS beat(12)2.81%
EPS beat(16)9
Avg EPS beat(16)3.76%
Revenue beat(2)2
Avg Revenue beat(2)9.82%
Min Revenue beat(2)8.5%
Max Revenue beat(2)11.14%
Revenue beat(4)3
Avg Revenue beat(4)5.77%
Min Revenue beat(4)-0.15%
Max Revenue beat(4)11.14%
Revenue beat(8)5
Avg Revenue beat(8)2.03%
Revenue beat(12)6
Avg Revenue beat(12)-2.07%
Revenue beat(16)10
Avg Revenue beat(16)-0.59%
PT rev (1m)0.98%
PT rev (3m)-3.61%
EPS NQ rev (1m)-3.11%
EPS NQ rev (3m)-1.63%
EPS NY rev (1m)0.65%
EPS NY rev (3m)-8.32%
Revenue NQ rev (1m)0.52%
Revenue NQ rev (3m)4.23%
Revenue NY rev (1m)-0.67%
Revenue NY rev (3m)4.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.13 | ||
| Fwd PE | 7.25 | ||
| P/S | 0.55 | ||
| P/FCF | 7.43 | ||
| P/OCF | 2.77 | ||
| P/B | 1.39 | ||
| P/tB | 1.64 | ||
| EV/EBITDA | 1.31 |
EPS(TTM)2.84
EY12.31%
EPS(NY)3.18
Fwd EY13.78%
FCF(TTM)3.1
FCFY13.45%
OCF(TTM)8.33
OCFY36.1%
SpS42.25
BVpS16.64
TBVpS14.11
PEG (NY)N/A
PEG (5Y)0.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.91% | ||
| ROE | 19.6% | ||
| ROCE | 30.05% | ||
| ROIC | 23.74% | ||
| ROICexc | 30.94% | ||
| ROICexgc | 33.67% | ||
| OM | 28.86% | ||
| PM (TTM) | 7.72% | ||
| GM | 49.13% | ||
| FCFM | 7.35% |
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-Score4
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.39 | ||
| Debt/EBITDA | 0.59 | ||
| Cap/Depr | 121.16% | ||
| Cap/Sales | 12.37% | ||
| Interest Coverage | 42.68 | ||
| Cash Conversion | 50.47% | ||
| Profit Quality | 95.21% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 2.42 |
F-Score4
WACC6.86%
ROIC/WACC3.46
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)-18.81%
EPS 3Y-2.27%
EPS 5Y16.82%
EPS Q2Q%-23.81%
EPS Next Y-7.52%
EPS Next 2Y-2.69%
EPS Next 3Y0.5%
EPS Next 5Y10.92%
Revenue 1Y (TTM)1.09%
Revenue growth 3Y4.92%
Revenue growth 5Y10.24%
Sales Q2Q%-1.54%
Revenue Next Year-1.17%
Revenue Next 2Y-2.57%
Revenue Next 3Y-1.3%
Revenue Next 5Y-4.76%
EBIT growth 1Y-6.21%
EBIT growth 3Y-4.07%
EBIT growth 5Y15.92%
EBIT Next Year30.46%
EBIT Next 3Y6.74%
EBIT Next 5Y3.17%
FCF growth 1Y-56.45%
FCF growth 3Y-27.45%
FCF growth 5Y17.48%
OCF growth 1Y-23.85%
OCF growth 3Y-11.3%
OCF growth 5Y7.9%