VAR ENERGI ASA (VAR.OL) Stock Fundamental Analysis
OSL:VAR - Euronext Oslo - NO0011202772 - Common Stock - Currency: NOK
We assign a fundamental rating of 5 out of 10 to VAR. VAR was compared to 61 industry peers in the Oil, Gas & Consumable Fuels industry. While VAR belongs to the best of the industry regarding profitability, there are concerns on its financial health. VAR scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year VAR was profitable.
In the past year VAR had a positive cash flow from operations.
VAR had positive earnings in 4 of the past 5 years.
In the past 5 years VAR always reported a positive cash flow from operatings.
1.2 Ratios
VAR has a worse Return On Assets (1.42%) than 77.05% of its industry peers.
VAR has a better Return On Equity (37.42%) than 91.80% of its industry peers.
VAR has a Return On Invested Capital of 14.70%. This is amongst the best in the industry. VAR outperforms 81.97% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VAR is significantly above the industry average of 11.72%.
The last Return On Invested Capital (14.70%) for VAR is well below the 3 year average (22.49%), which needs to be investigated, but indicates that VAR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.42% | ||
| ROE | 37.42% | ||
| ROIC | 14.7% |
ROA(3y)3.19%
ROA(5y)0.97%
ROE(3y)45.05%
ROE(5y)18.2%
ROIC(3y)22.49%
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 4.18%, VAR is not doing good in the industry: 65.57% of the companies in the same industry are doing better.
VAR's Profit Margin has improved in the last couple of years.
VAR has a Operating Margin of 51.16%. This is amongst the best in the industry. VAR outperforms 90.16% of its industry peers.
In the last couple of years the Operating Margin of VAR has grown nicely.
Looking at the Gross Margin, with a value of 81.17%, VAR belongs to the top of the industry, outperforming 88.52% of the companies in the same industry.
VAR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 51.16% | ||
| PM (TTM) | 4.18% | ||
| GM | 81.17% |
OM growth 3Y0.34%
OM growth 5Y18.33%
PM growth 3Y-26.93%
PM growth 5Y8.97%
GM growth 3Y-0.06%
GM growth 5Y3.92%
2. Health
2.1 Basic Checks
VAR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
VAR has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for VAR remains at a similar level compared to 5 years ago.
The debt/assets ratio for VAR is higher compared to a year ago.
2.2 Solvency
VAR has a debt to FCF ratio of 11.34. This is a negative value and a sign of low solvency as VAR would need 11.34 years to pay back of all of its debts.
VAR has a Debt to FCF ratio of 11.34. This is in the lower half of the industry: VAR underperforms 63.93% of its industry peers.
A Debt/Equity ratio of 6.27 is on the high side and indicates that VAR has dependencies on debt financing.
VAR has a worse Debt to Equity ratio (6.27) than 93.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.27 | ||
| Debt/FCF | 11.34 | ||
| Altman-Z | N/A |
ROIC/WACC1.75
WACC8.39%
2.3 Liquidity
A Current Ratio of 0.67 indicates that VAR may have some problems paying its short term obligations.
VAR has a Current ratio of 0.67. This is amonst the worse of the industry: VAR underperforms 91.80% of its industry peers.
A Quick Ratio of 0.54 indicates that VAR may have some problems paying its short term obligations.
With a Quick ratio value of 0.54, VAR is not doing good in the industry: 93.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
VAR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -56.00%.
The Earnings Per Share has been growing by 31.78% on average over the past years. This is a very strong growth
VAR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.76%.
Measured over the past years, VAR shows a very strong growth in Revenue. The Revenue has been growing by 20.92% on average per year.
EPS 1Y (TTM)-56%
EPS 3Y-21.91%
EPS 5Y31.78%
EPS Q2Q%-260%
Revenue 1Y (TTM)8.76%
Revenue growth 3Y6.86%
Revenue growth 5Y20.92%
Sales Q2Q%-0.91%
3.2 Future
Based on estimates for the next years, VAR will show a very strong growth in Earnings Per Share. The EPS will grow by 25.57% on average per year.
Based on estimates for the next years, VAR will show a small growth in Revenue. The Revenue will grow by 1.44% on average per year.
EPS Next Y294.2%
EPS Next 2Y101.89%
EPS Next 3Y58.38%
EPS Next 5Y25.57%
Revenue Next Year21.37%
Revenue Next 2Y14.18%
Revenue Next 3Y8.59%
Revenue Next 5Y1.44%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 26.32, which means the current valuation is very expensive for VAR.
Based on the Price/Earnings ratio, VAR is valued a bit more expensive than the industry average as 73.77% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 28.79, VAR is valued at the same level.
Based on the Price/Forward Earnings ratio of 6.65, the valuation of VAR can be described as very cheap.
Based on the Price/Forward Earnings ratio, VAR is valued cheaply inside the industry as 80.33% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of VAR to the average of the S&P500 Index (21.38), we can say VAR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.32 | ||
| Fwd PE | 6.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VAR is valued cheaply inside the industry as 81.97% of the companies are valued more expensively.
VAR's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.43 | ||
| EV/EBITDA | 2.13 |
4.3 Compensation for Growth
VAR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of VAR may justify a higher PE ratio.
VAR's earnings are expected to grow with 58.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.09
PEG (5Y)0.83
EPS Next 2Y101.89%
EPS Next 3Y58.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 16.11%, VAR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 61.06, VAR pays a better dividend. On top of this VAR pays more dividend than 91.80% of the companies listed in the same industry.
VAR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 16.11% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
346.70% of the earnings are spent on dividend by VAR. This is not a sustainable payout ratio.
DP346.7%
EPS Next 2Y101.89%
EPS Next 3Y58.38%
OSL:VAR (4/25/2025, 7:00:00 PM)
30
+0.07 (+0.23%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners17.32%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap74.89B
Analysts78.1
Price Target40.02 (33.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 16.11% |
Yearly Dividend4.51
Dividend Growth(5Y)N/A
DP346.7%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-230.59%
Min EPS beat(2)-446.49%
Max EPS beat(2)-14.7%
EPS beat(4)0
Avg EPS beat(4)-129.58%
Min EPS beat(4)-446.49%
Max EPS beat(4)-14.7%
EPS beat(8)0
Avg EPS beat(8)-81.51%
EPS beat(12)0
Avg EPS beat(12)-73.61%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-5.52%
Min Revenue beat(2)-6.74%
Max Revenue beat(2)-4.3%
Revenue beat(4)0
Avg Revenue beat(4)-4.43%
Min Revenue beat(4)-6.74%
Max Revenue beat(4)-0.93%
Revenue beat(8)0
Avg Revenue beat(8)-4.64%
Revenue beat(12)1
Avg Revenue beat(12)-4.21%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.37%
PT rev (3m)-0.78%
EPS NQ rev (1m)19.44%
EPS NQ rev (3m)34.38%
EPS NY rev (1m)-2.42%
EPS NY rev (3m)-5.24%
Revenue NQ rev (1m)-6.83%
Revenue NQ rev (3m)-8.98%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.32 | ||
| Fwd PE | 6.65 | ||
| P/S | 0.97 | ||
| P/FCF | 15.43 | ||
| P/OCF | 2.11 | ||
| P/B | 8.65 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.13 |
EPS(TTM)1.14
EY3.8%
EPS(NY)4.51
Fwd EY15.03%
FCF(TTM)1.94
FCFY6.48%
OCF(TTM)14.19
OCFY47.31%
SpS31.03
BVpS3.47
TBVpS-11.67
PEG (NY)0.09
PEG (5Y)0.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.42% | ||
| ROE | 37.42% | ||
| ROCE | 19.08% | ||
| ROIC | 14.7% | ||
| ROICexc | 14.9% | ||
| ROICexgc | 18.28% | ||
| OM | 51.16% | ||
| PM (TTM) | 4.18% | ||
| GM | 81.17% | ||
| FCFM | 6.26% |
ROA(3y)3.19%
ROA(5y)0.97%
ROE(3y)45.05%
ROE(5y)18.2%
ROIC(3y)22.49%
ROIC(5y)N/A
ROICexc(3y)23.16%
ROICexc(5y)N/A
ROICexgc(3y)27.5%
ROICexgc(5y)N/A
ROCE(3y)29.21%
ROCE(5y)N/A
ROICexcg growth 3Y4.04%
ROICexcg growth 5Y38.36%
ROICexc growth 3Y3.1%
ROICexc growth 5Y41.51%
OM growth 3Y0.34%
OM growth 5Y18.33%
PM growth 3Y-26.93%
PM growth 5Y8.97%
GM growth 3Y-0.06%
GM growth 5Y3.92%
F-Score3
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.27 | ||
| Debt/FCF | 11.34 | ||
| Debt/EBITDA | 0.91 | ||
| Cap/Depr | 153.52% | ||
| Cap/Sales | 39.48% | ||
| Interest Coverage | 11.09 | ||
| Cash Conversion | 59.5% | ||
| Profit Quality | 149.82% | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | N/A |
F-Score3
WACC8.39%
ROIC/WACC1.75
Cap/Depr(3y)175.33%
Cap/Depr(5y)158.77%
Cap/Sales(3y)35.36%
Cap/Sales(5y)43.19%
Profit Quality(3y)197.73%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-56%
EPS 3Y-21.91%
EPS 5Y31.78%
EPS Q2Q%-260%
EPS Next Y294.2%
EPS Next 2Y101.89%
EPS Next 3Y58.38%
EPS Next 5Y25.57%
Revenue 1Y (TTM)8.76%
Revenue growth 3Y6.86%
Revenue growth 5Y20.92%
Sales Q2Q%-0.91%
Revenue Next Year21.37%
Revenue Next 2Y14.18%
Revenue Next 3Y8.59%
Revenue Next 5Y1.44%
EBIT growth 1Y-5.73%
EBIT growth 3Y7.22%
EBIT growth 5Y43.09%
EBIT Next Year88.23%
EBIT Next 3Y26.27%
EBIT Next 5Y11.49%
FCF growth 1Y-36.81%
FCF growth 3Y-37.64%
FCF growth 5Y24.35%
OCF growth 1Y-0.36%
OCF growth 3Y-9.38%
OCF growth 5Y17.84%