Equinor ASA (EQNR)

FairStock Score: 80/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for high returns on capital and cash generation bought at a sensible price. Equinor is an integrated oil and gas company with 23,545 employees and global operations. In the latest reported quarter, fiscal Q2 2026, it earned $4.8B of net income on $34.5B of revenue, a 14.04% net margin. FairStock's calculations show trailing ROE of 21.27% and ROCE of 14.52%, respectable though oil and gas is commodity-price dependent. Scale and integration give it some competitive moat, but no producer controls the oil price. It generated $9.6B of trailing free cash flow, a 10.1% FCF yield at the $45.02 close on 2026-10-13. At that same close, FairStock calculates P/E 12.20, EV/EBITDA 2.58, PEG 0.05, and dividend yield 3.54%; those are not demanding if earnings hold. The balance sheet shows debt-to-equity of 0.75, but FairStock's Altman Z-Score of 1.69 is in the distress zone. Piotroski F-Score is 7/9, suggesting generally improving fundamentals. On the other hand, P/B is 5.08 and the Graham Number is $38.78, so the price is 16.09% above that conservative value, offering no Graham margin of safety. The profit growth figures may be peak-cycle, and no Peter Lynch category can be assigned because there are only 0 years of filed results, while the rule needs 3. So: a cash-generative but cyclical business, cheap on earnings and cash flow, less cheap on book value. Watch debt, oil prices, and dividend coverage.

In plain English: Equinor is a large energy company that finds, produces, and sells oil and gas, and also works on renewable energy. The business looks profitable and produces a lot of cash, though it depends on energy prices. At the recent price, the stock looks reasonably cheap based on profits and cash flow, but it trades above a conservative estimate of its value and carries some debt risk.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer