EQUINOR ASA-SPON ADR (EQNR) Stock Fundamental Analysis
NYSE:EQNR - New York Stock Exchange, Inc. - US29446M1027 - ADR - Currency: USD
EQNR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 208 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 quite cheap, but it does not seem to be growing. With these ratings, EQNR could be worth investigating further 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.
Each year in the past 5 years EQNR had a positive operating cash flow.
1.2 Ratios
EQNR's Return On Assets of 6.36% is fine compared to the rest of the industry. EQNR outperforms 68.27% of its industry peers.
The Return On Equity of EQNR (19.13%) is better than 83.65% of its industry peers.
EQNR has a better Return On Invested Capital (24.25%) than 97.12% of its industry peers.
EQNR had an Average Return On Invested Capital over the past 3 years of 33.92%. This is significantly above the industry average of 23.92%.
The 3 year average ROIC (33.92%) for EQNR is well above the current ROIC(24.25%). The reason for the recent decline needs to be investigated.
| 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
EQNR's Profit Margin of 8.21% is in line compared to the rest of the industry. EQNR outperforms 50.48% of its industry peers.
In the last couple of years the Profit Margin of EQNR has grown nicely.
Looking at the Operating Margin, with a value of 29.66%, EQNR is in the better half of the industry, outperforming 69.71% 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 58.65% of the companies in the same industry.
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
EQNR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for EQNR has been reduced compared to 1 year ago.
The number of shares outstanding for EQNR has been reduced compared to 5 years ago.
Compared to 1 year ago, EQNR has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.61 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 2.61, EQNR is doing good in the industry, outperforming 77.88% 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.
EQNR has a Debt to FCF ratio of 4.02. This is in the better half of the industry: EQNR outperforms 70.19% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that EQNR is not too dependend on debt financing.
EQNR has a Debt to Equity ratio of 0.50. This is comparable to the rest of the industry: EQNR outperforms 47.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 4.02 | ||
| Altman-Z | 2.61 |
ROIC/WACC3.41
WACC7.12%
2.3 Liquidity
EQNR has a Current Ratio of 1.37. This is a normal value and indicates that EQNR is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.37, EQNR is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
A Quick Ratio of 1.27 indicates that EQNR should not have too much problems paying its short term obligations.
The Quick ratio of EQNR (1.27) is better than 66.35% of its industry peers.
| 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 -18.81%.
EQNR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.82% yearly.
The Revenue has decreased by -4.07% in the past year.
The Revenue has been growing by 10.24% on average over the past years. This is quite good.
EPS 1Y (TTM)-18.81%
EPS 3Y-2.27%
EPS 5Y16.82%
EPS Q2Q%-23.81%
Revenue 1Y (TTM)-4.07%
Revenue growth 3Y4.92%
Revenue growth 5Y10.24%
Sales Q2Q%-1.54%
3.2 Future
EQNR is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.64% yearly.
Based on estimates for the next years, EQNR will show a decrease in Revenue. The Revenue will decrease by -4.76% on average per year.
EPS Next Y4.4%
EPS Next 2Y1.65%
EPS Next 3Y1.88%
EPS Next 5Y3.64%
Revenue Next Year-1.75%
Revenue Next 2Y-3.04%
Revenue Next 3Y-1.55%
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
With a Price/Earnings ratio of 8.62, the valuation of EQNR can be described as very reasonable.
EQNR's Price/Earnings ratio is a bit cheaper when compared to the industry. EQNR is cheaper than 77.88% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.03. EQNR is valued rather cheaply when compared to this.
EQNR is valuated cheaply with a Price/Forward Earnings ratio of 7.04.
82.69% of the companies in the same industry are more expensive than EQNR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of EQNR to the average of the S&P500 Index (36.28), we can say EQNR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.62 | ||
| Fwd PE | 7.04 |
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.
Based on the Price/Free Cash Flow ratio, EQNR is valued cheaply inside the industry as 80.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.6 | ||
| EV/EBITDA | 1.24 |
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)1.96
PEG (5Y)0.51
EPS Next 2Y1.65%
EPS Next 3Y1.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.69%, EQNR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 6.33, 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 | 5.69% |
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
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%
25.17
-0.05 (-0.2%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners18.35%
Inst Owner Change0.14%
Ins Owners0%
Ins Owner ChangeN/A
Market Cap63.70B
Analysts56.76
Price Target27.18 (7.99%)
Short Float %3.48%
Short Ratio5.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.69% |
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)-17.96%
Min EPS beat(2)-23.66%
Max EPS beat(2)-12.26%
EPS beat(4)2
Avg EPS beat(4)-4.49%
Min EPS beat(4)-23.66%
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)0%
PT rev (3m)-5.79%
EPS NQ rev (1m)3.85%
EPS NQ rev (3m)0.38%
EPS NY rev (1m)6.58%
EPS NY rev (3m)6.02%
Revenue NQ rev (1m)-1.86%
Revenue NQ rev (3m)2.25%
Revenue NY rev (1m)4.11%
Revenue NY rev (3m)2.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.62 | ||
| Fwd PE | 7.04 | ||
| P/S | 0.6 | ||
| P/FCF | 8.6 | ||
| P/OCF | 3.16 | ||
| P/B | 1.39 | ||
| P/tB | 1.61 | ||
| EV/EBITDA | 1.24 |
EPS(TTM)2.92
EY11.6%
EPS(NY)3.57
Fwd EY14.2%
FCF(TTM)2.93
FCFY11.63%
OCF(TTM)7.95
OCFY31.6%
SpS42.2
BVpS18.11
TBVpS15.65
PEG (NY)1.96
PEG (5Y)0.51
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 | 2.61 |
F-Score6
WACC7.12%
ROIC/WACC3.41
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 Y4.4%
EPS Next 2Y1.65%
EPS Next 3Y1.88%
EPS Next 5Y3.64%
Revenue 1Y (TTM)-4.07%
Revenue growth 3Y4.92%
Revenue growth 5Y10.24%
Sales Q2Q%-1.54%
Revenue Next Year-1.75%
Revenue Next 2Y-3.04%
Revenue Next 3Y-1.55%
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%