OB:EQNR

Stock Analysis Report

Executive Summary

Equinor ASA, an energy company, explores for, produces, transports, refines, and markets petroleum and petroleum-derived products, and other forms of energy in Norway and internationally.


Snowflake Analysis

Adequate balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has Equinor's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EQNR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.5%

EQNR

-7.1%

NO Oil and Gas

-3.8%

NO Market


1 Year Return

-22.9%

EQNR

-22.8%

NO Oil and Gas

-4.9%

NO Market

Return vs Industry: EQNR matched the Norwegian Oil and Gas industry which returned -22.8% over the past year.

Return vs Market: EQNR underperformed the Norwegian Market which returned -4.9% over the past year.


Shareholder returns

EQNRIndustryMarket
7 Day-6.5%-7.1%-3.8%
30 Day-16.5%-17.1%-6.1%
90 Day-13.1%-14.2%-2.5%
1 Year-18.4%-22.9%-18.3%-22.8%0.1%-4.9%
3 Year16.8%1.7%20.9%5.7%27.8%11.7%
5 Year34.3%5.0%34.0%7.4%52.9%18.6%

Price Volatility Vs. Market

How volatile is Equinor's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Equinor undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EQNR (NOK150.2) is trading below our estimate of fair value (NOK345.75)

Significantly Below Fair Value: EQNR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EQNR is poor value based on its PE Ratio (29x) compared to the Oil and Gas industry average (15.9x).

PE vs Market: EQNR is poor value based on its PE Ratio (29x) compared to the Norwegian market (14.9x).


Price to Earnings Growth Ratio

PEG Ratio: EQNR is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: EQNR is overvalued based on its PB Ratio (1.3x) compared to the NO Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is Equinor forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

17.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EQNR's forecast earnings growth (17.6% per year) is above the savings rate (0.7%).

Earnings vs Market: EQNR's earnings (17.6% per year) are forecast to grow slower than the Norwegian market (18.5% per year).

High Growth Earnings: EQNR's earnings are forecast to grow, but not significantly.

Revenue vs Market: EQNR's revenue (4.2% per year) is forecast to grow faster than the Norwegian market (3.4% per year).

High Growth Revenue: EQNR's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EQNR's Return on Equity is forecast to be low in 3 years time (13.2%).


Next Steps

Past Performance

How has Equinor performed over the past 5 years?

56.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EQNR has a large one-off loss of $3.2B impacting its December 31 2019 financial results.

Growing Profit Margin: EQNR's current net profit margins (2.9%) are lower than last year (9.6%).


Past Earnings Growth Analysis

Earnings Trend: EQNR's earnings have grown significantly by 56.3% per year over the past 5 years.

Accelerating Growth: EQNR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EQNR had negative earnings growth (-75.5%) over the past year, making it difficult to compare to the Oil and Gas industry average (-18%).


Return on Equity

High ROE: EQNR's Return on Equity (4.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Equinor's financial position?


Financial Position Analysis

Short Term Liabilities: EQNR's short term assets ($24.8B) exceed its short term liabilities ($19.6B).

Long Term Liabilities: EQNR's short term assets ($24.8B) do not cover its long term liabilities ($57.3B).


Debt to Equity History and Analysis

Debt Level: EQNR's debt to equity ratio (60%) is considered high.

Reducing Debt: EQNR's debt to equity ratio has reduced from 60.9% to 60% over the past 5 years.

Debt Coverage: EQNR's debt is well covered by operating cash flow (55.7%).

Interest Coverage: EQNR's interest payments on its debt are well covered by EBIT (16x coverage).


Balance Sheet

Inventory Level: EQNR has a high level of physical assets or inventory.

Debt Coverage by Assets: EQNR's debt is covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is Equinor's current dividend yield, its reliability and sustainability?

6.71%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Equinor before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company6.7%marketbottom25%2.9%markettop25%6.3%industryaverage7.3%forecastin3Years7.2%

Current dividend yield vs market & industry

Notable Dividend: EQNR's dividend (6.71%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.92%).

High Dividend: EQNR's dividend (6.71%) is in the top 25% of dividend payers in the Norwegian market (6.25%)


Stability and Growth of Payments

Stable Dividend: EQNR's dividend payments have been volatile in the past 10 years.

Growing Dividend: EQNR's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (189.5%), EQNR's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EQNR's dividends in 3 years are forecast to be covered by earnings (61.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Eldar Sætre (63yo)

5.3yrs

Tenure

US$2,068,000

Compensation

Mr. Eldar Sætre has been the Chief Executive Officer and President of Statoil ASA since October 15, 2014. Mr. Sætre served as an Interim President the Chief Executive Officer of Statoil ASA from October 20 ...


CEO Compensation Analysis

Compensation vs Market: Eldar's total compensation ($USD2.07M) is about average for companies of similar size in the Norwegian market ($USD1.61M).

Compensation vs Earnings: Eldar's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Eldar Sætre
President & CEO5.3yrsUS$2.07m0.0026% $12.7m
Lars Bacher
Executive VP & CFO1.5yrsUS$1.06m0.00095% $4.7m
Jannicke Nilsson
Executive VP & COO3.2yrsUS$891.00k0.0015% $7.2m
Anders Opedal
Executive Vice President of Technology1.3yrsUS$439.00k0.00085% $4.2m
Irene Rummelhoff
Executive Vice President of Marketing1.5yrsUS$926.00k0.0011% $5.2m
Margareth Øvrum
Executive Vice President of Development & Production Brazil1.3yrsUS$919.00k0.0021% $10.4m
Timothy Dodson
Executive Vice President of Exploration9.1yrsUS$1.04m0.0011% $5.6m
Torgrim Reitan
Executive Vice President of Development & Production International9.1yrsUS$1.21m0.0015% $7.7m
Arne Nylund
Executive Vice President of Development & Production - Norway6.1yrsUS$1.00m0.00060% $3.0m
Pål Eitrheim
Executive Vice President of New Energy Solutions1.5yrsUS$303.00k0.00040% $2.0m

2.3yrs

Average Tenure

54.5yo

Average Age

Experienced Management: EQNR's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeroen van der Veer
Deputy Chairman0.6yrsno data0.000090% $445.4k
Jon Erik Reinhardsen
Chair of the Board2.4yrsno data0.00014% $692.8k
Rebekka Herlofsen
Independent Director4.9yrsno datano data
Nils Bastiansen
Deputy Chairman of Corporate Assembly0yrsno datano data
Wenche Agerup
Independent Director4.5yrsno data0.000080% $395.9k
Tone Cathrine Bakker
Chair of Corporate Assembly4.1yrsno datano data
Stig Lægreid
Director6.6yrsno data0.000060% $296.9k
Bjørn Godal
Independent Director9.4yrsno datano data
Ingrid di Valerio
Director6.6yrsno data0.00017% $841.2k
Per Labråten
Director2.7yrsno data0.000070% $346.4k

4.5yrs

Average Tenure

57.5yo

Average Age

Experienced Board: EQNR's board of directors are considered experienced (4.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Equinor ASA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Equinor ASA
  • Ticker: EQNR
  • Exchange: OB
  • Founded: 1972
  • Industry: Integrated Oil and Gas
  • Sector: Energy
  • Market Cap: kr494.851b
  • Shares outstanding: 3.29b
  • Website: https://www.equinor.com

Number of Employees


Location

  • Equinor ASA
  • Forusbeen 50
  • Stavanger
  • Rogaland
  • 4035
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EQNRNYSE (New York Stock Exchange)SPON ADR EACH REP 1 ORD SHSUSUSDJun 2001
EQNROB (Oslo Bors)YesCommon StockNONOKJun 2001
DNQADB (Deutsche Boerse AG)SPON ADR EACH REP 1 ORD SHSDEEURJun 2001
STLSWX (SIX Swiss Exchange)YesCommon StockCHCHFJun 2001
DNQDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2001
STOH.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJun 2001
0M2ZLSE (London Stock Exchange)YesCommon StockGBNOKJun 2001
EQNR NBMV (Bolsa Mexicana de Valores)SPON ADR EACH REP 1 ORD SHSMXMXNJun 2001
0L9HLSE (London Stock Exchange)SPON ADR EACH REP 1 ORD SHSGBUSDJun 2001

Biography

Equinor ASA, an energy company, explores for, produces, transports, refines, and markets petroleum and petroleum-derived products, and other forms of energy in Norway and internationally. The company operates through Development & Production Norway; Development & Production Brazil; Development & Production International; Marketing, Midstream & Processing; New Energy Solutions; Technology, Projects & Drilling; Exploration; and Global Strategy & Business Development segments. It also transports, processes, manufactures, markets, and trades in oil and gas commodities, such as crude and condensate products, gas liquids, natural gas, and liquefied natural gas; markets and trades in electricity and emission rights; and operates refineries, processing and power plants, and terminals. In addition, the company develops wind, and carbon capture and storage projects, as well as offers other renewable energy and low-carbon energy solutions. As of December 31, 2018, it had proved oil and gas reserves of 6,175 million barrels of oil equivalent. The company was formerly known as Statoil ASA and changed its name to Equinor ASA in May 2018. Equinor ASA was founded in 1972 and is headquartered in Stavanger, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 21:03
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.