VAR ENERGI ASA (VAR.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:VAR - NO0011202772 - Common Stock
34.3 NOK
-0.03 (-0.09%)
We assign a fundamental rating of 5 out of 10 to VAR. VAR was compared to 71 industry peers in the Oil, Gas & Consumable Fuels industry. VAR has an excellent profitability rating, but there are concerns on its financial health. VAR is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
- VAR had positive earnings in the past year.
- In the past year VAR had a positive cash flow from operations.
- 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 66.20% of its industry peers.
- VAR has a Return On Equity of 70.22%. This is amongst the best in the industry. VAR outperforms 98.59% of its industry peers.
- The Return On Invested Capital of VAR (10.78%) is better than 85.92% 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 8.91%.
- 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
- 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 95.77% of the companies in the same industry.
- In the last couple of years the Operating Margin of VAR has grown nicely.
- VAR's Gross Margin of 81.88% is amongst the best of the industry. VAR outperforms 88.73% of its industry peers.
- In the last couple of years the Gross Margin of VAR has grown nicely.
| 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.
- The number of shares outstanding for VAR remains at a similar level compared to 1 year ago.
- VAR has about the same amout of shares outstanding than it did 5 years ago.
- Compared to 1 year ago, VAR has a worse debt to assets ratio.
2.2 Solvency
- The Debt to FCF ratio of VAR is 7.35, which is on the high side as it means it would take VAR, 7.35 years of fcf income to pay off 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 50.70% of the companies in the same industry.
- VAR has a Debt/Equity ratio of 7.19. This is a high value indicating a heavy dependency on external financing.
- VAR's Debt to Equity ratio of 7.19 is on the low side compared to the rest of the industry. VAR is outperformed by 95.77% 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
- A Current Ratio of 0.72 indicates that VAR may have some problems paying its short term obligations.
- VAR has a Current ratio of 0.72. This is amonst the worse of the industry: VAR underperforms 85.92% of its industry peers.
- A Quick Ratio of 0.61 indicates that VAR may have some problems paying its short term obligations.
- VAR has a worse Quick ratio (0.61) than 84.51% 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.
- 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)-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
- The Earnings Per Share is expected to grow by 28.39% on average over the next years. This is a very strong growth
- 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 Y288.12%
EPS Next 2Y77.66%
EPS Next 3Y47.32%
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.
- 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
- The Price/Earnings ratio is 15.24, which indicates a correct valuation of VAR.
- VAR's Price/Earnings ratio is a bit cheaper when compared to the industry. VAR is cheaper than 60.56% of the companies in the same industry.
- When comparing the Price/Earnings ratio of VAR to the average of the S&P500 Index (28.87), we can say VAR is valued slightly cheaper.
- The Price/Forward Earnings ratio is 10.08, which indicates a very decent valuation of VAR.
- Based on the Price/Forward Earnings ratio, VAR is valued a bit cheaper than the industry average as 77.46% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, VAR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.24 | ||
| Fwd PE | 10.08 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, VAR is valued cheaper than 88.73% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of VAR indicates a somewhat cheap valuation: VAR is cheaper than 76.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.27 | ||
| EV/EBITDA | 2.49 |
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 47.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.05
PEG (5Y)0.48
EPS Next 2Y77.66%
EPS Next 3Y47.32%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 14.30%, VAR is a good candidate for dividend investing.
- VAR's Dividend Yield is rather good when compared to the industry average which is at 5.24. VAR pays more dividend than 98.59% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, VAR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.3% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 194.92% of the earnings are spent on dividend by VAR. This is not a sustainable payout ratio.
DP194.92%
EPS Next 2Y77.66%
EPS Next 3Y47.32%
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%.