Equinor ASA (EQNR): What Does Valuation Ratios Tell Us?


Equinor ASA (NYSE:EQNR) saw a downside of -1.61% to close Tuesday at $30.58 after subtracting -$0.5 on the day. The 5-day average trading volume is 3,110,460 shares of the company’s common stock. It has gained $31.75 in the past week and touched a new high 1 time within the past 5 days. An average of 3,839,710 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 3,176,418.

EQNR’s 1-month performance is -15.81% or -$6.44 on its low of $30.26 reached on 01/24/23. The company’s shares have touched a 52-week low of $25.76 and high of $41.00, with the stock’s rally to the 52-week high happening on 01/03/23. YTD, EQNR has lost -12.69% or -$5.23 and has reached a new high 1 time. However, the current price is down -25.42% from the 52-week high price.

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Valuation Metrics

EQNR stock has a beta of 1.01. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 0.65 while the price-to-book (PB) in the most recent quarter is 2.25, with the price to cash flow ratio at 3.51.

Equinor ASA’s quick ratio for the period ended December 30 was 1.50, with the current ratio over the same period at 1.70. As well, the company’s long term debt to equity for the quarter ending December 30 was 0.60, while the total debt to equity was 0.75.. In terms of profitability, the gross margin trailing 12 months is 64.40%. The firm’s gross profit as reported stood at $55.76 billion against revenue of $90.92 billion.

Earnings Surprise

For the quarterly period ending December 30 this year, Equinor ASA’s cash and short-term investments amounted to $132.0 million against total debt of $32.03 billion. Net income and sales went up compared to those figures reported in the previous quarter. Net income grew 164.35% to $8.56 billion, while revenue of $0.0 was 100.0% off the previous quarter. Analysts expected EQNR to announce $0.63 per share in earnings in its latest quarter, but it posted $1.3, representing a 106.30% surprise. EBITDA for the quarter stood at more than $27.15 billion. EQNR stock balance sheet for the quarter ending December 30 shows that total liabilities totaled 109.86 billion, with total debt at $32.03 billion.

Let’s look briefly at Equinor ASA (EQNR) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 24 January was 27.49% to suggest the stock is trending oversold, with historical volatility in this time period at 17.42%.

The stock’s 5-day moving average is $30.96, reflecting a -1.83% or -$0.57 change from its current price. EQNR is currently trading -16.70% above its 20-day SMA, -22.33% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -12.83% and SMA200 by-18.26%.

Stochastic %K and %D was 17.34% and 15.25% and the average true range (ATR) pointed at 0.83. The RSI (14) points at 30.79%, while the 14-day stochastic is at 14.38% with the period’s ATR at 0.89. The stock’s 9-day MACD Oscillator is pointing at -0.09 and -0.31 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Equinor ASA (NYSE: EQNR), JP Morgan downgraded it to an Underweight rating. They previously had a Neutral rating on the stock.

What is EQNR’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $32.00 and a high of $50.00, with their median price target at $34.30. Looking at these predictions, the average price target given by analysts is for Equinor ASA (EQNR) stock is $38.77.


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