EQUINOR ASA-SPON ADR (EQNR)
US29446M1027 - ADR
EQNR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 213 industry peers in the Oil, Gas & Consumable Fuels industry. EQNR gets an excellent profitability rating and is at the same time showing great financial health properties. EQNR is cheap, but on the other hand it scores bad on growth. This makes EQNR very considerable for value investing!
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.
EQNR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 8.28%, EQNR perfoms like the industry average, outperforming 58.02% of the companies in the same industry.
EQNR's Return On Equity of 24.51% is fine compared to the rest of the industry. EQNR outperforms 70.28% of its industry peers.
EQNR's Return On Invested Capital of 27.16% is amongst the best of the industry. EQNR outperforms 91.98% of its industry peers.
EQNR had an Average Return On Invested Capital over the past 3 years of 34.03%. This is significantly below the industry average of 46.07%.
The 3 year average ROIC (34.03%) for EQNR is well above the current ROIC(27.16%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.28% | ||
| ROE | 24.51% | ||
| ROIC | 27.16% |
ROA(3y)10.76%
ROA(5y)5.89%
ROE(3y)33.24%
ROE(5y)17.59%
ROIC(3y)34.03%
ROIC(5y)23.28%
1.3 Margins
The Profit Margin of EQNR (11.12%) is comparable to the rest of the industry.
EQNR's Profit Margin has improved in the last couple of years.
The Operating Margin of EQNR (34.71%) is better than 63.21% of its industry peers.
In the last couple of years the Operating Margin of EQNR has grown nicely.
With a Gross Margin value of 54.91%, EQNR perfoms like the industry average, outperforming 58.02% of the companies in the same industry.
EQNR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.71% | ||
| PM (TTM) | 11.12% | ||
| GM | 54.91% |
OM growth 3Y64.3%
OM growth 5Y6.9%
PM growth 3YN/A
PM growth 5Y3.01%
GM growth 3Y0.48%
GM growth 5Y1.5%
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.
EQNR has less shares outstanding than it did 5 years ago.
The debt/assets ratio for EQNR is higher compared to a year ago.
2.2 Solvency
EQNR has an Altman-Z score of 2.86. 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's Altman-Z score of 2.86 is fine compared to the rest of the industry. EQNR outperforms 70.75% of its industry peers.
The Debt to FCF ratio of EQNR is 2.25, which is a good value as it means it would take EQNR, 2.25 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of EQNR (2.25) is better than 72.64% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that EQNR is somewhat dependend on debt financing.
EQNR has a Debt to Equity ratio (0.51) which is in line with its industry peers.
Although EQNR does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.25 | ||
| Altman-Z | 2.86 |
ROIC/WACC4.1
WACC6.62%
2.3 Liquidity
EQNR has a Current Ratio of 1.71. 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 Current ratio value of 1.71, EQNR is doing good in the industry, outperforming 72.17% of the companies in the same industry.
EQNR has a Quick Ratio of 1.60. This is a normal value and indicates that EQNR is financially healthy and should not expect problems in meeting its short term obligations.
EQNR's Quick ratio of 1.60 is fine compared to the rest of the industry. EQNR outperforms 73.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
EQNR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -52.04%.
EQNR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.15% yearly.
EQNR shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -28.29%.
EQNR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.35% yearly.
EPS 1Y (TTM)-52.04%
EPS 3Y130.07%
EPS 5Y11.15%
EPS growth Q2Q-65.38%
Revenue 1Y (TTM)-28.29%
Revenue growth 3Y32.67%
Revenue growth 5Y6.35%
Revenue growth Q2Q-14.77%
3.2 Future
The Earnings Per Share is expected to grow by 3.50% on average over the next years.
The Revenue is expected to decrease by -8.72% on average over the next years.
EPS Next Y-5.2%
EPS Next 2Y0.45%
EPS Next 3Y-0.88%
EPS Next 5Y3.5%
Revenue Next Year-3.96%
Revenue Next 2Y-5.49%
Revenue Next 3Y-2.28%
Revenue Next 5Y-8.72%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 7.87, which indicates a rather cheap valuation of EQNR.
Based on the Price/Earnings ratio, EQNR is valued a bit cheaper than 69.81% of the companies in the same industry.
EQNR is valuated cheaply when we compare the Price/Earnings ratio to 24.80, which is the current average of the S&P500 Index.
EQNR is valuated reasonably with a Price/Forward Earnings ratio of 8.31.
EQNR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EQNR is cheaper than 75.94% 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 21.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.87 | ||
| Fwd PE | 8.31 |
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 98.58% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, EQNR is valued cheaper than 83.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.64 | ||
| EV/EBITDA | 0.91 |
4.3 Compensation for Growth
EQNR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.71
EPS Next 2Y0.45%
EPS Next 3Y-0.88%
5. Dividend
5.1 Amount
EQNR has a Yearly Dividend Yield of 5.72%, which is a nice return.
Compared to an average industry Dividend Yield of 5.80, 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 | 5.72% |
5.2 History
The dividend of EQNR is nicely growing with an annual growth rate of 34.90%!
EQNR has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of EQNR decreased in the last 3 years.
Dividend Growth(5Y)34.9%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
91.76% 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.
DP91.76%
EPS Next 2Y0.45%
EPS Next 3Y-0.88%
EQUINOR ASA-SPON ADR
NYSE:EQNR (4/18/2024, 7:04:00 PM)
After market: 27.3 +0.07 (+0.26%)27.23
-0.02 (-0.07%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap79.71B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.72% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.87 | ||
| Fwd PE | 8.31 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.28% | ||
| ROE | 24.51% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 34.71% | ||
| PM (TTM) | 11.12% | ||
| GM | 54.91% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.74
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-52.04%
EPS 3Y130.07%
EPS 5Y
EPS growth Q2Q
EPS Next Y-5.2%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-28.29%
Revenue growth 3Y32.67%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y