Equinor ASA logged a 2.4% change during today's evening session, and is now trading at a price of $31.59 per share.
Equinor ASA returned losses of -16.6% last year, with its stock price reaching a high of $37.58 and a low of $25.23. Over the same period, the stock underperformed the S&P 500 index by -37.4%. As of April 2023, the company's 50-day average price was $32.56. Equinor ASA, an energy company, engages in the exploration, production, transportation, refining, and marketing of petroleum and other forms of energy in Norway and internationally. Based in Stavanger, Norway, the large-cap Energy company has 21,936 full time employees. Equinor ASA has offered a 3.9% dividend yield over the last 12 months.
The Business Runs With Low Leverage Levels:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $79,593 | $79,593 | $64,357 | $90,924 | $150,806 | $150,806 |
| Revenue Growth | n/a | 0.0% | -19.14% | 41.28% | 65.86% | 0.0% |
| Operating Margins | 25% | 25% | 14% | 37% | 52% | 52% |
| Net Margins | 9% | 9% | 3% | 9% | 19% | 19% |
| Net Income (MM) | $7,538 | $7,538 | $2,174 | $8,576 | $28,746 | $28,746 |
| Net Interest Expense (MM) | -$351 | -$7 | -$7 | -$836 | -$207 | -$207 |
| Depreciation & Amort. (MM) | $9,249 | $13,204 | $15,235 | $15,235 | $11,719 | $8,878 |
| Free Cash Flow (MM) | $19,694 | $19,694 | $13,749 | $28,816 | $35,136 | $35,136 |
| Current Ratio | 1.37 | 1.33 | 1.58 | 1.59 | 1.77 | 1.77 |
| Total Debt (MM) | $67,630 | $75,193 | $86,160 | $97,238 | $97,238 | $93,719 |
| Net Debt / EBITDA | 2.04 | 2.03 | 3.24 | 1.7 | 0.9 | 0.89 |
Equinor ASA has growing revenues and no capital expenditures and low leverage. Additionally, the company's financial statements display decent operating margins with a positive growth rate and irregular cash flows. Furthermore, Equinor ASA has positive expected EPS Growth.
The Market Is Undervaluing Equinor ASA:
Equinor ASA has a trailing twelve month P/E ratio of 5.9, compared to an average of 8.53 for the Energy sector. Based on its EPS guidance of $6.14, the company has a forward P/E ratio of 5.3. The market is placing a fair value on Equinor ASA's equity, since its P/B ratio of 1.93 is comparable to its sector average of 1.78.
There's an Analyst Consensus of Some Upside Potential for Equinor ASA:
The 3 analysts following Equinor ASA have set target prices ranging from $33.3 to $38.0 per share, for an average of $36.1 with a buy rating. As of April 2023, the company is trading -9.8% away from its average target price, indicating that there is an analyst consensus of some upside potential.
The largest shareholder is Folketrygdfondet, whose 4% stake in the company is worth $3,381,477,393.
