Equinor ASA (EQNR) AI Stock Analysis

• Market Cap: $75.35B
• Dividend Yield: 5.33%
• Average Volume (3M): 3.51M
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.20
• Revenue Growth: 3.96%
• EPS Growth: -1.69%
• Country: US
• Employees: 24,126
• Sector: Energy
• Sector Strength: 72
• Industry: Oil & Gas Integrated
• EPS (TTM): 0.66
• Shares Outstanding: 2,792,781,300
• 10 Day Avg. Volume: 3,200,305
• 30 Day Avg. Volume: 3,505,690
• PEG Ratio: 0.02
• Price to Book (P/B): 2.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.31
• Enterprise Value/Market Cap: 1.73
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 3.21
• Enterprise Value/Ebitda: 0.77
• 1Y Price Target: $24.29
• Price Target Upside: -12.06% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 73 Outperform
• Price Target: $26.00 ▼(-5.87%Downside)

Equinor ASA's overall stock score reflects strong financial performance and valuation attractiveness, which are somewhat offset by technical indicators suggesting potential overbought conditions and recent earnings call concerns about the Empire Wind project. The company's robust cash generation and low P/E ratio are notable strengths, while operational cost challenges and project uncertainties are key risks.

Positive Factors

Capex reduction

The announced 2025 capex reduction exceeded expectations by $2B.

Guidance

EQNR guided liquids realizations 3% higher than forecast and gas 4% higher than forecast, driving our revision.

Production stability

EQNR reiterated an ability to maintain Norwegian production to 2035.

Negative Factors

Cash distribution

The cash distribution outlook was disappointing.

Earnings outlook

Lower near-term earnings are expected due to weakening commodity prices and lower buybacks as a result of more rapid build in leverage.

Risk of project cancellation

The risk of Empire Wind getting canceled introduces potential for an increase in leverage in a weakening macro environment.

Equinor ASA Business Overview & Revenue Model

Company Description

Equinor ASA, an energy company, engages in the exploration, production, transportation, refining, and marketing of petroleum and petroleum-derived products, and other forms of energy in Norway and internationally. It operates through Exploration & Production Norway; Exploration & Production International; Exploration & Production USA; Marketing, Midstream & Processing; Renewables; and Other segments. The company 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; operates refineries, terminals and processing, and power plants; and develops low carbon solutions for oil and gas. In addition, it develops wind, and carbon capture and storage projects, as well as offers other renewable energy. As of December 31, 2021, the company had proved oil and gas reserves of 5,356 million barrels of oil equivalent. Equinor ASA has collaboration agreements with Vårgrønn; and RWE Renewables and Hydro REIN. The company was formerly known as Statoil ASA and changed its name to Equinor ASA in May 2018. Equinor ASA was incorporated in 1972 and is headquartered in Stavanger, Norway.

How the Company Makes Money

Equinor ASA generates revenue through several key streams, primarily from the exploration and production of oil and natural gas. It sells crude oil, natural gas, and refined petroleum products globally, leveraging its strong upstream operations. Additionally, Equinor is investing in renewable energy sources such as offshore wind farms and solar energy projects, which are becoming increasingly significant to its revenue mix. The company also benefits from strategic partnerships and joint ventures in both traditional and renewable energy sectors, enhancing its operational capabilities and market reach. Furthermore, Equinor's trading and marketing activities contribute to its revenue by optimizing the supply and sale of energy commodities.

Equinor ASA Financial Statement Overview

Summary

Equinor ASA demonstrates strong operational efficiency and a stable balance sheet, although profitability has faced challenges, with declining net profit margins. The company maintains robust cash generation but faces pressures on free cash flow growth. Overall, Equinor shows resilience in its financial structure, with areas for improvement in profitability and cash flow growth.

Income Statement

Equinor ASA's revenue has shown a mixed trend, decreasing significantly from 2022 to 2023 but slightly rebounding in TTM (Trailing-Twelve-Months). Gross profit margins remain strong at approximately 38% to 40%, indicating effective cost management. Net profit margins have decreased from 19.3% in 2022 to 8.2% in TTM, reflecting challenges in sustaining net income levels. The EBIT and EBITDA margins remain robust, highlighting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is stable, with total debt reduced slightly over the periods, showing prudent financial management. Stockholders' equity has grown consistently, enhancing financial stability. The equity ratio stands strong at around 33% in TTM, indicating a solid capital structure. Return on equity has decreased, aligning with reduced net income, suggesting pressure on profitability.

Cash Flow

Operating cash flow remains strong, although free cash flow has decreased in TTM compared to previous periods, indicating increased capital expenditures. The operating cash flow to net income ratio is favorable, suggesting strong cash generation capabilities. However, free cash flow growth rate is negative in TTM, showing potential challenges in maintaining free cash flow levels.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
106.80B	102.50B	106.85B	149.00B	88.74B	45.75B
	Gross Profit
40.56B	41.93B	48.04B	88.81B	41.87B	9.53B
	EBIT
32.06B	29.66B	35.77B	78.81B	33.66B	-2.87B
	EBITDA
42.31B	41.81B	50.18B	85.75B	42.98B	6.60B
	Net Income Common Stockholders
8.77B	8.81B	11.88B	28.75B	8.56B	-5.50B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
24.85B	23.45B	38.87B	45.45B	33.28B	18.62B
	Total Assets
137.90B	131.14B	143.58B	158.02B	147.12B	121.97B
	Total Debt
29.77B	30.09B	31.80B	32.17B	36.24B	38.12B
	Net Debt
22.40B	21.97B	22.16B	16.59B	24.21B	31.36B
	Total Liabilities
92.03B	88.76B	95.08B	104.03B	108.10B	88.08B
	Stockholders Equity
45.82B	42.34B	48.49B	53.99B	39.01B	33.87B
Cash Flow		Free Cash Flow
7.41B	7.93B	14.13B	26.38B	20.78B	1.91B
	Operating Cash Flow
20.13B	20.11B	24.70B	35.14B	28.82B	10.39B
	Investing Cash Flow
-5.38B	-3.53B	-12.41B	-15.86B	-16.21B	-12.09B
	Financing Cash Flow
-14.74B	-17.74B	-18.14B	-15.41B	-4.84B	2.99B

Equinor ASA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EQNR, the sentiment is Positive. The current price of 27.62 is above the 20-day moving average (MA) of 24.42, above the 50-day MA of 23.48, and above the 200-day MA of 23.41, indicating a bullish trend. The MACD of 0.80 indicates Negative momentum. The RSI at 79.66 is Negative, neither overbought nor oversold. The STOCH value of 99.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EQNR.

Equinor ASA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TTE	78 Outperform	$133.55B	10.42	11.75%	5.24%	-9.86%	-32.59%
SHEL	76 Outperform	$210.63B	16.62	7.40%	3.95%	-2.62%	-20.13%
PBR	75 Outperform	$78.12B	9.66	11.25%	8.16%	-10.84%	-61.73%
EQNR	73 Outperform	$75.35B	8.74	18.28%	5.33%	3.96%	-1.69%
E	73 Outperform	$49.15B	18.27	4.78%	3.45%	-2.17%	-25.00%
BP	68 Neutral	$81.64B	186.20	-1.87%	5.99%	-7.70%	-113.83%
Sector *	58 Neutral	$7.56B	3.50	-4.45%	10.15%	0.79%	-49.51%