EQUINOR ASA-SPON ADR (EQNR) Stock Fundamental Analysis
NYSE:EQNR - US29446M1027 - ADR
24.61 USD
+0.12 (+0.49%)
24.55 USD
-0.06 (-0.24%)
We assign a fundamental rating of 6 out of 10 to EQNR. EQNR was compared to 208 industry peers in the Oil, Gas & Consumable Fuels industry. While EQNR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. EQNR has a bad growth rate and is valued cheaply. This makes EQNR very considerable for value investing!
1. Profitability
1.1 Basic Checks
EQNR had positive earnings in the past year.
EQNR had a positive operating cash flow in the past year.
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's Return On Assets of 5.91% is fine compared to the rest of the industry. EQNR outperforms 65.38% of its industry peers.
EQNR has a better Return On Equity (19.60%) than 84.62% of its industry peers.
EQNR has a Return On Invested Capital of 23.74%. This is amongst the best in the industry. EQNR outperforms 97.12% 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 23.39%.
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's Profit Margin of 7.72% is in line compared to the rest of the industry. EQNR outperforms 50.00% of its industry peers.
EQNR's Profit Margin has improved in the last couple of years.
EQNR has a better Operating Margin (28.86%) than 68.75% of its industry peers.
In the last couple of years the Operating Margin of EQNR has grown nicely.
EQNR has a Gross Margin (49.13%) which is in line with 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
EQNR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, EQNR has less shares outstanding
Compared to 5 years ago, EQNR has less shares outstanding
Compared to 1 year ago, EQNR has a worse debt to assets ratio.
2.2 Solvency
EQNR has an Altman-Z score of 2.44. 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.
The Altman-Z score of EQNR (2.44) is better than 75.48% of its industry peers.
EQNR has a debt to FCF ratio of 4.39. This is a neutral value as EQNR would need 4.39 years to pay back of all of its debts.
The Debt to FCF ratio of EQNR (4.39) is better than 66.83% of its industry peers.
A Debt/Equity ratio of 0.58 indicates that EQNR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.58, EQNR is in line with its industry, outperforming 43.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.58 | ||
| Debt/FCF | 4.39 | ||
| Altman-Z | 2.44 |
ROIC/WACC3.39
WACC7.01%
2.3 Liquidity
A Current Ratio of 1.23 indicates that EQNR should not have too much problems paying its short term obligations.
EQNR's Current ratio of 1.23 is in line compared to the rest of the industry. EQNR outperforms 56.25% of its industry peers.
A Quick Ratio of 1.12 indicates that EQNR should not have too much problems paying its short term obligations.
EQNR's Quick ratio of 1.12 is fine compared to the rest of the industry. EQNR outperforms 60.10% of its industry peers.
| 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.
The Earnings Per Share has been growing by 16.82% on average over the past years. This is quite good.
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 3.89% on average over the next years.
EQNR is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -4.76% yearly.
EPS Next Y-7.91%
EPS Next 2Y-2.39%
EPS Next 3Y0.63%
EPS Next 5Y3.89%
Revenue Next Year-0.93%
Revenue Next 2Y-2.5%
Revenue Next 3Y-1.23%
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
EQNR is valuated reasonably with a Price/Earnings ratio of 8.70.
Based on the Price/Earnings ratio, EQNR is valued cheaper than 82.69% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.08. EQNR is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 7.71, 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 82.21% 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 22.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.7 | ||
| Fwd PE | 7.71 |
4.2 Price Multiples
99.04% of the companies in the same industry are more expensive than EQNR, based on the Enterprise Value to EBITDA ratio.
EQNR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EQNR is cheaper than 82.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.95 | ||
| EV/EBITDA | 1.4 |
4.3 Compensation for Growth
The excellent profitability rating of EQNR may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.52
EPS Next 2Y-2.39%
EPS Next 3Y0.63%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.46%, EQNR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.29, EQNR pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, EQNR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.46% |
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
82.65% 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.
DP82.65%
EPS Next 2Y-2.39%
EPS Next 3Y0.63%
24.61
+0.12 (+0.49%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners18.35%
Inst Owner Change-0.06%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap62.22B
Analysts55.14
Price Target25.94 (5.4%)
Short Float %3.65%
Short Ratio5.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.46% |
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)-4.55%
PT rev (3m)-4.2%
EPS NQ rev (1m)-5.41%
EPS NQ rev (3m)-3.7%
EPS NY rev (1m)-14.57%
EPS NY rev (3m)-8.71%
Revenue NQ rev (1m)0.65%
Revenue NQ rev (3m)5.43%
Revenue NY rev (1m)4.99%
Revenue NY rev (3m)4.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.7 | ||
| Fwd PE | 7.71 | ||
| P/S | 0.58 | ||
| P/FCF | 7.95 | ||
| P/OCF | 2.96 | ||
| P/B | 1.48 | ||
| P/tB | 1.75 | ||
| EV/EBITDA | 1.4 |
EPS(TTM)2.83
EY11.5%
EPS(NY)3.19
Fwd EY12.96%
FCF(TTM)3.09
FCFY12.58%
OCF(TTM)8.3
OCFY33.75%
SpS42.11
BVpS16.58
TBVpS14.06
PEG (NY)N/A
PEG (5Y)0.52
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 | 2.44 |
F-Score4
WACC7.01%
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)-18.81%
EPS 3Y-2.27%
EPS 5Y16.82%
EPS Q2Q%-23.81%
EPS Next Y-7.91%
EPS Next 2Y-2.39%
EPS Next 3Y0.63%
EPS Next 5Y3.89%
Revenue 1Y (TTM)1.09%
Revenue growth 3Y4.92%
Revenue growth 5Y10.24%
Sales Q2Q%-1.54%
Revenue Next Year-0.93%
Revenue Next 2Y-2.5%
Revenue Next 3Y-1.23%
Revenue Next 5Y-4.76%
EBIT growth 1Y-6.21%
EBIT growth 3Y-4.07%
EBIT growth 5Y15.92%
EBIT Next Year29.75%
EBIT Next 3Y6.16%
EBIT Next 5Y2.94%
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%