EQNR Stock Analysis – A Brief Overview for Investors

Equinor logged a -2.8% change during today's afternoon session, and is now trading at a price of $27.75 per share.

Over the last year, Equinor logged a -1.2% change, with its stock price reaching a high of $34.73 and a low of $24.44. Over the same period, the stock underperformed the S&P 500 index by -27.5%. AThe company's 50-day average price was $28.02. 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 23,449 full time employees. Equinor has offered a 4.6% dividend yield over the last 12 months.

Growing Revenues With No Capital Eexpenditures:

2018 2019 2020 2021 2022 2023
Revenue (M) $79,593 $64,357 $45,818 $90,924 $150,806 $107,174
Operating Margins 25% 14% -7% 37% 52% 33%
Net Margins 9% 3% -12% 9% 19% 11%
Net Income (M) $7,538 $1,851 -$5,496 $8,576 $28,744 $11,904
Net Interest Expense (M) -$1,263 -$7 -$836 -$2,080 -$207 $2,114
Depreciation & Amort. (M) $9,249 $13,204 $9,515 $10,432 $8,878 $9,373
Diluted Shares (M) 3,335 3,334 3,277 3,254 3,183 2,945
Earnings Per Share $2.27 $0.55 -$1.69 $2.63 $9.03 $3.93
EPS Growth n/a -75.77% -407.27% 255.62% 243.35% -56.48%
Free Cash Flow (M) $19,694 $13,749 $10,386 $28,816 $26,525 $14,126
Total Debt (M) $23,264 $21,754 $29,118 $27,404 $24,141 $22,230
Net Debt / EBITDA 0.53 0.74 3.67 0.3 0.1 0.28
Current Ratio 1.57 1.27 1.58 1.59 1.77 1.71

Equinor has strong operating margins with a positive growth rate and positive EPS growth. Additionally, the company's financial statements display a decent current ratio of 1.71 and healthy leverage levels. Furthermore, Equinor has positive cash flows.

Equinor Has Attractive Multiples and Potentially Undervalued:

Equinor has a trailing twelve month P/E ratio of 8.6, compared to an average of 14.36 for the Energy sector. Based on its EPS guidance of $3.5, the company has a forward P/E ratio of 8.0. The 6.4% compound average growth rate of Equinor's historical and projected earnings per share yields a PEG ratio of 1.35. This implies that the shares are fairly valued. Additionally, the market is possibly undervaluing Equinor in terms of its equity because its P/B ratio is 1.63 whereas the sector average is 2.1. The company's shares are currently trading -27.3% above their Graham number.

Equinor Has an Analyst Consensus of Some Upside Potential:

The 5 analysts following Equinor have set target prices ranging from $29.39 to $35.0 per share, for an average of $31.48 with a buy rating. The company is trading -11.8% 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 $2,917,301,328.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.