Equinor ASA (NYSE: EQNR) is an energy company that develops oil resources and produces petroleum and petroleum-derived products. Based in Norway, it is one of the world’s largest energy companies. Like many of its peers, it is looking ahead to a clean energy future, making it an interesting pick for alternative investors.
Equinor will increase its renewable production capacity from four to six gigawatts by 2026. The company actively engages in CO2 scrubbing and has safely captured and stored 23 million tons of the greenhouse gas so far. The company is now spending a quarter of its R&D budget on low-carbon fuel options and energy efficiency.
While it transitions to become a cleaner and greener company, its operations will be supported by traditional energy products. The company is subject to volatility in the oil market, which led to a 17% revenue decline in 2019. However, the company still finished last year with a gross margin of 15.93%, and it has a positive EBITDA margin of 32.85%. Its profitability and fiscal efficiency allow the company to remain viable even when revenue falls.
This profitability also leads to investor returns. The company pays a generous dividend with a yield of 3.59%. The target price of $19.26 will also help bargain investors to consider this promising stock.
- 1 Year Price Growth: -14.80%
- YTD Price Growth: -21.04%
- 3 Month Price Growth: -0.63%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.