Equinor ASA (EQNR) AI Stock Analysis

• Market Cap: $62.17B
• Dividend Yield: 8.76%
• Average Volume (3M): 3.94M
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.08
• Revenue Growth: 1.19%
• EPS Growth: -7.87%
• Country: US
• Employees: 24,126
• Sector: Energy
• Sector Strength: 46
• Industry: Oil & Gas Integrated
• EPS (TTM): 0.64
• Shares Outstanding: 2,556,807,600
• 10 Day Avg. Volume: 4,186,773
• 30 Day Avg. Volume: 3,939,299
• 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: 1.23
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 1.93
• Enterprise Value/Ebitda: 1.89
• 1Y Price Target: $25.95
• Price Target Upside: 6.27% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 67 Neutral
• Price Target: $27.00 ▲(10.57% Upside)

Equinor ASA's overall stock score is driven by its strong financial performance and attractive valuation. However, technical indicators suggest bearish momentum, and challenges highlighted in the earnings call, such as impairments and lower liquids prices, temper the outlook.

Positive Factors

Commodity Prices

Higher near-term earnings estimates from higher commodity prices lead to a raised price target of $21 based on an NPV of FCF with 2028 as a terminal year.

Operational Stability

EQNR reiterated an ability to maintain Norwegian production to 2035.

Production Growth

The Castberg ramp-up should be supportive for near-term production growth.

Negative Factors

Cash Flow

The company's free cash flow was $0.6 billion worse than forecast.

Gas Prices

Investors remain concerned about lower global gas prices affecting EQNR earnings in the medium-term.

Project Uncertainty

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 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 presents a solid financial profile with strong margins and operational efficiency. The balance sheet reflects moderate leverage and a strong equity base, but declining profitability and cash flow generation present challenges.

Income Statement

Equinor ASA's income statement demonstrates a strong financial performance with a Gross Profit Margin of 37.25% and an EBIT Margin of 29.29% for TTM. The company's revenue has shown resilience despite fluctuations, with a slight decrease in the TTM compared to 2024. While the Net Profit Margin is healthy at 7.72%, there is a noticeable decline from the previous year, indicating some pressure on profitability.

Balance Sheet

The balance sheet of Equinor ASA reflects a stable financial position, with a Debt-to-Equity Ratio of 0.82, indicating moderate leverage. The Equity Ratio stands at 30.13%, suggesting a solid equity base. Return on Equity is 19.62%, which is robust but shows a decline from 2024, highlighting potential challenges in maintaining high profitability.

Cash Flow

Equinor ASA's cash flow statement reveals a cautious outlook with a slight decrease in Free Cash Flow from the previous year. However, the Operating Cash Flow to Net Income Ratio of 2.56 shows strong operational efficiency. The Free Cash Flow to Net Income Ratio is 0.96, indicating efficient cash management, although there is room for improvement in cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	106.63B	102.50B	106.85B	149.00B	88.74B	45.75B
Gross Profit	39.70B	41.93B	48.04B	88.81B	41.87B	9.53B
EBITDA	40.64B	41.81B	50.18B	85.75B	42.98B	6.60B
Net Income	8.23B	8.81B	11.88B	28.75B	8.56B	-5.50B
Balance Sheet
Total Assets	139.09B	131.14B	143.58B	158.02B	147.12B	121.97B
Cash, Cash Equivalents and Short-Term Investments	23.80B	23.45B	38.87B	45.45B	33.28B	18.62B
Total Debt	34.35B	30.09B	31.80B	32.17B	36.24B	38.12B
Total Liabilities	97.12B	88.76B	95.08B	104.03B	108.10B	88.08B
Stockholders Equity	41.92B	42.34B	48.49B	53.99B	39.01B	33.87B
Cash Flow
Free Cash Flow	7.86B	7.93B	14.13B	26.38B	20.78B	1.91B
Operating Cash Flow	21.07B	20.11B	24.70B	35.14B	28.82B	10.39B
Investing Cash Flow	-5.15B	-3.53B	-12.41B	-15.86B	-16.21B	-12.09B
Financing Cash Flow	-12.94B	-17.74B	-18.14B	-15.41B	-4.84B	2.99B

Equinor ASA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EQNR, the sentiment is Negative. The current price of 24.42 is below the 20-day moving average (MA) of 25.19, below the 50-day MA of 25.71, and above the 200-day MA of 23.83, indicating a neutral trend. The MACD of -0.36 indicates Positive momentum. The RSI at 39.81 is Neutral, neither overbought nor oversold. The STOCH value of 17.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EQNR.

Equinor ASA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PBR	81 Outperform	$74.09B	5.69	19.48%	14.68%	-13.68%	-13.96%
TTE	78 Outperform	$139.67B	10.94	10.96%	5.75%	-10.73%	-36.76%
E	78 Outperform	$53.34B	20.22	4.83%	6.79%	-6.31%	-33.87%
SHEL	74 Outperform	$208.90B	14.06	7.40%	3.97%	―	―
EQNR	67 Neutral	$62.17B	8.11	19.22%	8.76%	1.19%	-7.87%
BP	65 Neutral	$88.41B	145.47	0.95%	5.65%	-7.40%	-90.89%
Sector *	56 Neutral	C$4.17B	1.07	16.25%	5.21%	10.31%	-56.29%