VAR ENERGI ASA (VAR.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:VAR - NO0011202772 - Common Stock
33.7 NOK
+1.01 (+3.09%)
VAR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 77 industry peers in the Oil, Gas & Consumable Fuels industry. VAR scores excellent on profitability, but 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.
Of the past 5 years VAR 4 years were profitable.
Each year in the past 5 years VAR had a positive operating cash flow.
1.2 Ratios
VAR's Return On Assets of 2.19% is on the low side compared to the rest of the industry. VAR is outperformed by 63.64% of its industry peers.
With an excellent Return On Equity value of 70.22%, VAR belongs to the best of the industry, outperforming 98.70% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.78%, VAR belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
VAR had an Average Return On Invested Capital over the past 3 years of 22.49%. This is significantly above the industry average of 8.78%.
The last Return On Invested Capital (10.78%) 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 | 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
VAR has a Profit Margin (7.75%) which is in line with its industry peers.
VAR's Profit Margin has improved in the last couple of years.
VAR has a better Operating Margin (43.98%) than 96.10% 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 81.88%, VAR belongs to the top of the industry, outperforming 89.61% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), VAR 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.
Compared to 1 year ago, VAR has a worse debt to assets ratio.
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.
Looking at the Debt to FCF ratio, with a value of 7.35, VAR is in line with its industry, outperforming 54.55% of the companies in the same industry.
A Debt/Equity ratio of 7.19 is on the high side and indicates that VAR has dependencies on debt financing.
VAR has a worse Debt to Equity ratio (7.19) than 94.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.19 | ||
| Debt/FCF | 7.35 | ||
| Altman-Z | N/A |
ROIC/WACC1.28
WACC8.45%
2.3 Liquidity
A Current Ratio of 0.72 indicates that VAR may have some problems paying 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 85.71% of its industry peers.
A Quick Ratio of 0.61 indicates that VAR may have some problems paying 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 84.42% 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.
The Revenue is expected to grow by 2.56% on average over the next years.
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
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
VAR is valuated correctly with a Price/Earnings ratio of 14.46.
Compared to the rest of the industry, the Price/Earnings ratio of VAR indicates a somewhat cheap valuation: VAR is cheaper than 63.64% of the companies listed in the same industry.
VAR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.19.
VAR is valuated reasonably with a Price/Forward Earnings ratio of 9.11.
77.92% of the companies in the same industry are more expensive than VAR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of VAR to the average of the S&P500 Index (23.92), we can say VAR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.46 | ||
| Fwd PE | 9.11 |
4.2 Price Multiples
VAR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VAR is cheaper than 90.91% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VAR is valued cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.78 | ||
| EV/EBITDA | 2.37 |
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)0.46
EPS Next 2Y82.35%
EPS Next 3Y49.44%
5. Dividend
5.1 Amount
VAR has a Yearly Dividend Yield of 15.39%, which is a nice return.
VAR's Dividend Yield is rather good when compared to the industry average which is at 5.26. VAR pays more dividend than 98.70% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, VAR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.39% |
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 (1/12/2026, 1:46:55 PM)
33.7
+1.01 (+3.09%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners16.32%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap84.13B
Revenue(TTM)7.54B
Net Income(TTM)584.86M
Analysts77.14
Price Target39.38 (16.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.39% |
Yearly Dividend4.38
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)0%
PT rev (3m)-43.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.52%
EPS NY rev (1m)1.38%
EPS NY rev (3m)-9.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.94%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.46 | ||
| Fwd PE | 9.11 | ||
| P/S | 1.1 | ||
| P/FCF | 9.78 | ||
| P/OCF | 2.25 | ||
| P/B | 9.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.37 |
EPS(TTM)2.33
EY6.91%
EPS(NY)3.7
Fwd EY10.98%
FCF(TTM)3.45
FCFY10.22%
OCF(TTM)14.99
OCFY44.49%
SpS30.57
BVpS3.37
TBVpS-12.95
PEG (NY)0.05
PEG (5Y)0.46
Graham Number13.3
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
WACC8.45%
ROIC/WACC1.28
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%.