VAR ENERGI ASA (VAR.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:VAR - NO0011202772 - Common Stock
35 NOK
+1.16 (+3.43%)
VAR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 75 industry peers in the Oil, Gas & Consumable Fuels industry. While VAR has a great profitability rating, there are quite some 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
- VAR had positive earnings in the past year.
- VAR had a positive operating cash flow in the past year.
- Of the past 5 years VAR 4 years were profitable.
- In the past 5 years VAR always reported a positive cash flow from operatings.
1.2 Ratios
- VAR has a Return On Assets of 2.19%. This is in the lower half of the industry: VAR underperforms 64.10% of its industry peers.
- VAR has a Return On Equity of 70.22%. This is amongst the best in the industry. VAR outperforms 98.72% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 10.78%, VAR belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for VAR is significantly above the industry average of 8.82%.
- The 3 year average ROIC (22.49%) for VAR is well above the current ROIC(10.78%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 70.22% | ||
| ROIC | 10.78% |
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
- The Profit Margin of VAR (7.75%) is comparable to the rest of the industry.
- VAR's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 43.98%, VAR belongs to the best of the industry, outperforming 96.15% of the companies in the same industry.
- VAR's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 81.88%, VAR belongs to the top of the industry, outperforming 89.74% of the companies in the same industry.
- VAR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 43.98% | ||
| PM (TTM) | 7.75% | ||
| GM | 81.88% |
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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so VAR is creating value.
- VAR has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, VAR has about the same amount of shares outstanding.
- VAR has a worse debt/assets ratio than last year.
2.2 Solvency
- VAR has a debt to FCF ratio of 7.35. This is a slightly negative value and a sign of low solvency as VAR would need 7.35 years to pay back of all of its debts.
- The Debt to FCF ratio of VAR (7.35) is comparable to the rest of the industry.
- VAR has a Debt/Equity ratio of 7.19. This is a high value indicating a heavy dependency on external financing.
- VAR has a Debt to Equity ratio of 7.19. This is amonst the worse of the industry: VAR underperforms 96.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.19 | ||
| Debt/FCF | 7.35 | ||
| Altman-Z | N/A |
ROIC/WACC1.27
WACC8.46%
2.3 Liquidity
- VAR has a Current Ratio of 0.72. This is a bad value and indicates that VAR is not financially healthy enough and could expect problems in meeting its short term obligations.
- VAR's Current ratio of 0.72 is on the low side compared to the rest of the industry. VAR is outperformed by 87.18% of its industry peers.
- VAR has a Quick Ratio of 0.72. This is a bad value and indicates that VAR is not financially healthy enough and could expect problems in meeting its short term obligations.
- VAR's Quick ratio of 0.61 is on the low side compared to the rest of the industry. VAR is outperformed by 85.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
- The earnings per share for VAR have decreased by -4.17% in the last year.
- The Earnings Per Share has been growing by 31.78% on average over the past years. This is a very strong growth
- The Revenue has been growing slightly by 1.05% in the past year.
- VAR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.92% yearly.
EPS 1Y (TTM)-4.17%
EPS 3Y-21.91%
EPS 5Y31.78%
EPS Q2Q%-28.57%
Revenue 1Y (TTM)1.05%
Revenue growth 3Y6.86%
Revenue growth 5Y20.92%
Sales Q2Q%14.4%
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 28.39% on average per year.
- Based on estimates for the next years, VAR will show a small growth in Revenue. The Revenue will grow by 2.56% on average per year.
EPS Next Y296.31%
EPS Next 2Y82.35%
EPS Next 3Y49.44%
EPS Next 5Y28.39%
Revenue Next Year11.89%
Revenue Next 2Y10.59%
Revenue Next 3Y6.12%
Revenue Next 5Y2.56%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 15.09, the valuation of VAR can be described as correct.
- VAR's Price/Earnings ratio is a bit cheaper when compared to the industry. VAR is cheaper than 60.26% of the companies in the same industry.
- VAR is valuated rather cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
- VAR is valuated reasonably with a Price/Forward Earnings ratio of 9.49.
- 76.92% of the companies in the same industry are more expensive than VAR, based on the Price/Forward Earnings ratio.
- VAR is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.09 | ||
| Fwd PE | 9.49 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, VAR is valued cheaply inside the industry as 88.46% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of VAR indicates a somewhat cheap valuation: VAR is cheaper than 75.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.18 | ||
| EV/EBITDA | 2.48 |
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.
- VAR has an outstanding profitability rating, which may justify a higher PE ratio.
- VAR's earnings are expected to grow with 49.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.05
PEG (5Y)0.47
EPS Next 2Y82.35%
EPS Next 3Y49.44%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 14.44%, VAR is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 5.11, VAR pays a better dividend. On top of this VAR pays more dividend than 98.72% 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 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.44% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- VAR pays out 194.92% of its income as dividend. This is not a sustainable payout ratio.
DP194.92%
EPS Next 2Y82.35%
EPS Next 3Y49.44%
OSL:VAR (1/16/2026, 7:00:00 PM)
35
+1.16 (+3.43%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)10-21 2025-10-21/bmo
Earnings (Next)01-27 2026-01-27/amc
Inst Owners16.32%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap87.37B
Revenue(TTM)7.54B
Net Income(TTM)584.86M
Analysts77.14
Price Target38.54 (10.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.44% |
Yearly Dividend4.36
Dividend Growth(5Y)N/A
DP194.92%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-32.65%
Min EPS beat(2)-33.44%
Max EPS beat(2)-31.86%
EPS beat(4)1
Avg EPS beat(4)-119.2%
Min EPS beat(4)-446.49%
Max EPS beat(4)35.01%
EPS beat(8)1
Avg EPS beat(8)-73.2%
EPS beat(12)1
Avg EPS beat(12)-57.81%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-4.06%
Min Revenue beat(2)-4.49%
Max Revenue beat(2)-3.63%
Revenue beat(4)0
Avg Revenue beat(4)-5.38%
Min Revenue beat(4)-6.74%
Max Revenue beat(4)-3.63%
Revenue beat(8)0
Avg Revenue beat(8)-4.55%
Revenue beat(12)0
Avg Revenue beat(12)-4.78%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.14%
PT rev (3m)-44.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.6%
EPS NY rev (1m)1.38%
EPS NY rev (3m)-9.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.08%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.09 | ||
| Fwd PE | 9.49 | ||
| P/S | 1.15 | ||
| P/FCF | 10.18 | ||
| P/OCF | 2.34 | ||
| P/B | 10.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.48 |
EPS(TTM)2.32
EY6.63%
EPS(NY)3.69
Fwd EY10.54%
FCF(TTM)3.44
FCFY9.82%
OCF(TTM)14.95
OCFY42.73%
SpS30.49
BVpS3.37
TBVpS-12.92
PEG (NY)0.05
PEG (5Y)0.47
Graham Number13.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.19% | ||
| ROE | 70.22% | ||
| ROCE | 14% | ||
| ROIC | 10.78% | ||
| ROICexc | 11.17% | ||
| ROICexgc | 13.56% | ||
| OM | 43.98% | ||
| PM (TTM) | 7.75% | ||
| GM | 81.88% | ||
| FCFM | 11.27% |
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
ROICexgc growth 3Y4.04%
ROICexgc 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-Score4
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.19 | ||
| Debt/FCF | 7.35 | ||
| Debt/EBITDA | 1.05 | ||
| Cap/Depr | 120.29% | ||
| Cap/Sales | 37.78% | ||
| Interest Coverage | 9.3 | ||
| Cash Conversion | 65.07% | ||
| Profit Quality | 145.4% | ||
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | N/A |
F-Score4
WACC8.46%
ROIC/WACC1.27
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)-4.17%
EPS 3Y-21.91%
EPS 5Y31.78%
EPS Q2Q%-28.57%
EPS Next Y296.31%
EPS Next 2Y82.35%
EPS Next 3Y49.44%
EPS Next 5Y28.39%
Revenue 1Y (TTM)1.05%
Revenue growth 3Y6.86%
Revenue growth 5Y20.92%
Sales Q2Q%14.4%
Revenue Next Year11.89%
Revenue Next 2Y10.59%
Revenue Next 3Y6.12%
Revenue Next 5Y2.56%
EBIT growth 1Y-17.93%
EBIT growth 3Y7.22%
EBIT growth 5Y43.09%
EBIT Next Year69.58%
EBIT Next 3Y23.54%
EBIT Next 5Y12.15%
FCF growth 1Y338.54%
FCF growth 3Y-37.64%
FCF growth 5Y24.35%
OCF growth 1Y23.09%
OCF growth 3Y-9.38%
OCF growth 5Y17.84%
VAR ENERGI ASA / VAR.OL FAQ
What is the fundamental rating for VAR stock?
ChartMill assigns a fundamental rating of 5 / 10 to VAR.OL.
What is the valuation status for VAR stock?
ChartMill assigns a valuation rating of 8 / 10 to VAR ENERGI ASA (VAR.OL). This can be considered as Undervalued.
How profitable is VAR ENERGI ASA (VAR.OL) stock?
VAR ENERGI ASA (VAR.OL) has a profitability rating of 8 / 10.
What is the financial health of VAR ENERGI ASA (VAR.OL) stock?
The financial health rating of VAR ENERGI ASA (VAR.OL) is 1 / 10.
Can you provide the dividend sustainability for VAR stock?
The dividend rating of VAR ENERGI ASA (VAR.OL) is 5 / 10 and the dividend payout ratio is 194.92%.