It's been a great evening session for Equinor ASA investors, who saw their shares rise 2.8% to a price of $31.71 per share. At these higher prices, is the company still fairly valued? If you are thinking about investing, make sure to check the company's fundamentals before making a decision.
Equinor ASA Shares Are Inexpensive:
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. The company belongs to the Energy sector, which has an average price to earnings (P/E) ratio of 8.53 and an average price to book (P/B) ratio of 1.78. In contrast, Equinor ASA has a trailing 12 month P/E ratio of 5.7 and a P/B ratio of 1.93.
Equinor ASA has moved -14.9% over the last year compared to 23.6% for the S&P 500 — a difference of -38.5%. Equinor ASA has a 52 week high of $37.58 and a 52 week low of $25.23.
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.
