Equinor ASA (EQNR) AI Stock Analysis

• Market Cap: $61.41B
• Dividend Yield: 8.93%
• Average Volume (3M): 3.80M
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.09
• Revenue Growth: 1.92%
• EPS Growth: -35.57%
• Country: US
• Employees: 24,126
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Integrated
• EPS (TTM): 0.37
• Shares Outstanding: 2,556,807,600
• 10 Day Avg. Volume: 3,700,244
• 30 Day Avg. Volume: 3,801,241
• PEG Ratio: -0.37
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 0.65
• P/FCF Ratio: 8.42
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 2.34
• Enterprise Value/Ebitda: 1.80
• 1Y Price Target: $23.33
• Price Target Upside: -3.63% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $26.00 ▲(7.39% Upside)

Equinor's overall stock score reflects strong valuation metrics and solid financial performance, despite some challenges in net profitability and cash flow efficiency. Technical analysis indicates mixed signals, while the earnings call reveals operational strengths but also financial and safety challenges. The high dividend yield and reasonable P/E ratio are significant positives.

Positive Factors

Renewable Energy Expansion

Equinor's focus on reducing costs in its renewables segment indicates a strategic shift towards sustainable energy, enhancing long-term growth prospects in a transitioning energy market.

Production Growth

The increase in production reflects operational efficiency and resource optimization, strengthening Equinor's market position and revenue potential in the energy sector.

Strategic Joint Ventures

The JV in lithium resources diversifies Equinor's portfolio, aligning with global energy trends and enhancing its strategic positioning in the critical minerals market.

Negative Factors

Net Profit Margin Decline

The decline in net profit margin suggests challenges in maintaining profitability, potentially impacting Equinor's ability to generate sustainable earnings over time.

Increased Leverage

Rising leverage can constrain financial flexibility, increasing risk and potentially affecting Equinor's ability to invest in growth opportunities or weather economic downturns.

Safety Challenges

Safety incidents can lead to operational disruptions and regulatory scrutiny, impacting Equinor's reputation and operational efficiency in the long term.

Equinor ASA Business Overview & Revenue Model

Company Description

Equinor ASA (EQNR) is a Norwegian multinational energy company primarily engaged in the exploration, production, and distribution of oil and natural gas. Headquartered in Stavanger, Equinor operates in segments including oil and gas exploration and production, renewable energy, and refining. The company is a significant player in the global energy market, focusing not only on traditional fossil fuels but also increasingly on renewable energy sources such as wind and solar power, aligning with its strategy to transition towards a more sustainable energy future.

How the Company Makes Money

Equinor generates revenue primarily through the production and sale of crude oil and natural gas. The company has a diversified portfolio of upstream operations, which includes exploration and extraction activities in key regions such as the North Sea and the U.S. Gulf of Mexico. Additionally, Equinor is expanding its revenue streams by investing in renewable energy projects, including offshore wind farms and solar power installations, which contribute to its earnings as these projects come online. The company's revenue model also includes partnerships with other energy firms and governments, leveraging shared resources and technology to enhance exploration and production efficiency. Furthermore, Equinor benefits from favorable pricing environments for oil and gas, as well as from long-term contracts that provide stability in revenue generation.

Equinor ASA Financial Statement Overview

Summary

Equinor ASA demonstrates strong revenue growth and profitability with solid gross and EBIT margins. However, challenges include declining net profit margins and reduced return on equity. The balance sheet remains stable, though leverage has increased slightly. Cash flow generation shows some pressure, with declining free cash flow growth. Overall, Equinor is performing well but should focus on improving net profitability and cash flow efficiency.

Income Statement

Equinor ASA has shown strong revenue growth in the TTM period with a 49.9% increase, indicating a robust recovery from previous declines. The gross profit margin of 38.9% and EBIT margin of 29.1% reflect solid profitability, although the net profit margin has decreased to 7.7% from 8.6% in the previous year, suggesting some pressure on net earnings. Overall, the income statement indicates a strong performance with some areas for improvement in net profitability.

Balance Sheet

The company's debt-to-equity ratio of 0.82 in the TTM period is manageable, showing a slight increase from the previous year, which may indicate rising leverage. The return on equity has decreased significantly to 5.4% from 20.8%, suggesting reduced efficiency in generating returns on shareholder investments. The equity ratio remains stable, indicating a balanced capital structure. Overall, the balance sheet is stable but shows signs of increased leverage and reduced return on equity.

Cash Flow

Equinor's cash flow statement shows a decline in free cash flow growth by 13.1% in the TTM period, reflecting challenges in cash generation. The operating cash flow to net income ratio of 0.55 indicates moderate cash conversion efficiency. The free cash flow to net income ratio of 0.37 suggests that a significant portion of earnings is being converted into free cash flow, albeit at a reduced rate compared to previous periods. Overall, the cash flow statement highlights some pressure on cash generation and efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	107.21B	102.50B	106.85B	149.00B	87.79B	45.65B
Gross Profit	29.96B	30.39B	36.12B	77.55B	32.30B	5.09B
EBITDA	38.98B	42.35B	50.18B	85.75B	42.98B	6.60B
Net Income	5.73B	8.81B	11.88B	28.75B	8.56B	-5.50B
Balance Sheet
Total Assets	135.85B	131.14B	143.58B	158.02B	147.12B	121.97B
Cash, Cash Equivalents and Short-Term Investments	22.39B	23.45B	38.87B	45.45B	33.28B	18.62B
Total Debt	30.95B	30.09B	31.80B	32.17B	36.24B	38.12B
Total Liabilities	95.25B	88.76B	95.08B	104.03B	108.10B	88.08B
Stockholders Equity	40.52B	42.34B	48.49B	53.99B	39.01B	33.87B
Cash Flow
Free Cash Flow	6.83B	7.93B	14.13B	26.38B	20.78B	1.91B
Operating Cash Flow	20.36B	20.11B	24.70B	35.14B	28.82B	10.39B
Investing Cash Flow	-6.09B	-3.53B	-12.41B	-15.86B	-16.21B	-12.09B
Financing Cash Flow	-11.94B	-17.74B	-18.14B	-15.41B	-4.84B	2.99B

Equinor ASA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 24.21 is above the 20-day moving average (MA) of 23.83, below the 50-day MA of 24.25, and above the 200-day MA of 24.06, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 51.76 is Neutral, neither overbought nor oversold. The STOCH value of 71.37 is Neutral, 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
E	79 Outperform	$56.03B	18.51	5.31%	4.83%	-3.84%	15.75%
TTE	78 Outperform	$133.58B	9.76	12.27%	5.81%	-9.52%	-11.66%
SHEL	78 Outperform	$215.64B	15.35	8.06%	3.79%	-6.96%	0.03%
PBR	73 Outperform	$79.90B	6.00	18.20%	12.82%	-11.63%	-15.67%
EQNR	69 Neutral	$61.41B	11.55	13.46%	8.93%	1.92%	-35.57%
BP	68 Neutral	$92.58B	60.31	2.52%	5.48%	-4.11%	-37.59%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Equinor ASA Corporate Events

Equinor ASA Announces Board Changes Effective October 31, 2025

On October 31, 2025, Equinor ASA announced a change in its Board of Directors as Tone H. Bachke will step down to focus on her role as EVP and CFO at SHV Holding N.V. This move is part of Equinor’s ongoing efforts to streamline its leadership structure and ensure strategic alignment with its business objectives.

Equinor Completes Third Tranche of 2025 Share Buy-Back Program

Equinor ASA announced the completion of the third tranche of its 2025 share buy-back program, purchasing 1,327,337 shares between September 29 and October 3, 2025, at an average price of NOK 246.8926 per share. This tranche is part of a broader buy-back initiative aimed at enhancing shareholder value, with a total of 13,377,819 shares bought back under the tranche, reflecting Equinor’s strategic focus on optimizing its capital structure and returning value to shareholders.

Equinor Completes Third Tranche of 2025 Share Buy-Back Program

Equinor ASA announced the completion of the third tranche of its 2025 share buy-back program, purchasing a total of 1,073,277 shares between August 11 and August 14, 2025, at an average price of NOK 249.2350 per share. This tranche is part of a larger buy-back initiative aimed at optimizing the company’s capital structure, with implications for shareholder value and market positioning.

Equinor ASA Executes Share Buy-Back for Employee Incentives

On August 15, 2025, Equinor ASA executed a buy-back of 662,594 shares at an average price of NOK 250.5303 per share, as part of its ongoing share buy-back program aimed at supporting share-based incentive programs for employees and management. This buy-back is part of a larger program announced in February 2025, with a total purchase amount of NOK 1,992,000,000, and is expected to impact Equinor’s share capital by reducing the number of issued shares, thereby potentially increasing shareholder value.

Equinor ASA Announces Ex-Dividend Trading on NYSE for Q1 2025

On August 19, 2025, Equinor ASA announced that its shares will be traded on the New York Stock Exchange without the first quarter 2025 cash dividend, which amounts to USD 0.37 per share. This move is in compliance with the Continuing Obligations and the Norwegian Securities Trading Act, potentially impacting shareholder returns and market perceptions.