VAR ENERGI ASA (VAR.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:VAR - NO0011202772 - Common Stock
32.32 NOK
+0.71 (+2.25%)
We assign a fundamental rating of 5 out of 10 to VAR. VAR was compared to 67 industry peers in the Oil, Gas & Consumable Fuels industry. VAR scores excellent on profitability, but there are concerns on its financial health. VAR may be a bit undervalued, certainly considering the very reasonable score on growth
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.
VAR had positive earnings in 4 of the past 5 years.
Each year in the past 5 years VAR had a positive operating cash flow.
1.2 Ratios
VAR's Return On Assets of 2.34% is on the low side compared to the rest of the industry. VAR is outperformed by 64.18% of its industry peers.
The Return On Equity of VAR (63.10%) is better than 98.51% of its industry peers.
With an excellent Return On Invested Capital value of 11.44%, VAR belongs to the best of the industry, outperforming 85.07% 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 9.19%.
The last Return On Invested Capital (11.44%) 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 | 2.34% | ||
| ROE | 63.1% | ||
| ROIC | 11.44% |
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 (8.43%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of VAR has grown nicely.
The Operating Margin of VAR (48.19%) is better than 95.52% of its industry peers.
In the last couple of years the Operating Margin of VAR has grown nicely.
VAR has a Gross Margin of 81.10%. This is amongst the best in the industry. VAR outperforms 88.06% of its industry peers.
VAR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 48.19% | ||
| PM (TTM) | 8.43% | ||
| GM | 81.1% |
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.
Compared to 1 year ago, VAR has about the same amount of shares outstanding.
Compared to 5 years ago, VAR has about the same amount of shares outstanding.
Compared to 1 year ago, VAR has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of VAR is 6.76, which is on the high side as it means it would take VAR, 6.76 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.76, VAR perfoms like the industry average, outperforming 56.72% of the companies in the same industry.
VAR has a Debt/Equity ratio of 6.18. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 6.18, VAR is not doing good in the industry: 94.03% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.18 | ||
| Debt/FCF | 6.76 | ||
| Altman-Z | N/A |
ROIC/WACC1.35
WACC8.45%
2.3 Liquidity
A Current Ratio of 0.75 indicates that VAR may have some problems paying its short term obligations.
VAR has a Current ratio of 0.75. This is amonst the worse of the industry: VAR underperforms 85.07% of its industry peers.
A Quick Ratio of 0.64 indicates that VAR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.64, VAR is doing worse than 85.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
VAR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.17%.
Measured over the past years, VAR shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.78% on average per year.
Looking at the last year, VAR shows a quite strong growth in Revenue. The Revenue has grown by 8.38% in the last 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)8.38%
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.
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
A Price/Earnings ratio of 14.05 indicates a correct valuation of VAR.
VAR's Price/Earnings is on the same level as the industry average.
VAR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.92.
With a Price/Forward Earnings ratio of 8.82, the valuation of VAR can be described as very reasonable.
Based on the Price/Forward Earnings ratio, VAR is valued a bit cheaper than the industry average as 76.12% of the companies are valued more expensively.
VAR is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.05 | ||
| Fwd PE | 8.82 |
4.2 Price Multiples
VAR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VAR is cheaper than 89.55% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VAR is valued a bit cheaper than 79.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.77 | ||
| EV/EBITDA | 2.45 |
4.3 Compensation for Growth
The 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)0.44
EPS Next 2Y82.35%
EPS Next 3Y49.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 15.47%, VAR is a good candidate for dividend investing.
VAR's Dividend Yield is rather good when compared to the industry average which is at 5.76. VAR pays more dividend than 98.51% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, VAR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.47% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
VAR pays out 180.93% of its income as dividend. This is not a sustainable payout ratio.
DP180.93%
EPS Next 2Y82.35%
EPS Next 3Y49.44%
OSL:VAR (12/29/2025, 1:06:06 PM)
32.32
+0.71 (+2.25%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners15.63%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap80.68B
Revenue(TTM)7.41B
Net Income(TTM)613.50M
Analysts75.45
Price Target39.38 (21.84%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.47% |
Yearly Dividend4.33
Dividend Growth(5Y)N/A
DP180.93%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.57%
Min EPS beat(2)-31.86%
Max EPS beat(2)35.01%
EPS beat(4)1
Avg EPS beat(4)-114.51%
Min EPS beat(4)-446.49%
Max EPS beat(4)35.01%
EPS beat(8)1
Avg EPS beat(8)-69.44%
EPS beat(12)1
Avg EPS beat(12)-63.94%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-5.58%
Min Revenue beat(2)-6.67%
Max Revenue beat(2)-4.49%
Revenue beat(4)0
Avg Revenue beat(4)-5.55%
Min Revenue beat(4)-6.74%
Max Revenue beat(4)-4.3%
Revenue beat(8)0
Avg Revenue beat(8)-4.4%
Revenue beat(12)0
Avg Revenue beat(12)-4.79%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.19%
PT rev (3m)-1.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-24.36%
EPS NY rev (1m)-7.2%
EPS NY rev (3m)-9.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.05%
Revenue NY rev (1m)-0.6%
Revenue NY rev (3m)-1.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.05 | ||
| Fwd PE | 8.82 | ||
| P/S | 1.11 | ||
| P/FCF | 8.77 | ||
| P/OCF | 2.13 | ||
| P/B | 8.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.45 |
EPS(TTM)2.3
EY7.12%
EPS(NY)3.66
Fwd EY11.33%
FCF(TTM)3.69
FCFY11.4%
OCF(TTM)15.15
OCFY46.87%
SpS29.18
BVpS3.9
TBVpS-11.98
PEG (NY)0.05
PEG (5Y)0.44
Graham Number14.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.34% | ||
| ROE | 63.1% | ||
| ROCE | 14.86% | ||
| ROIC | 11.44% | ||
| ROICexc | 11.79% | ||
| ROICexgc | 14.26% | ||
| OM | 48.19% | ||
| PM (TTM) | 8.43% | ||
| GM | 81.1% | ||
| FCFM | 12.63% |
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 | 6.18 | ||
| Debt/FCF | 6.76 | ||
| Debt/EBITDA | 1.1 | ||
| Cap/Depr | 145.71% | ||
| Cap/Sales | 39.28% | ||
| Interest Coverage | 9.04 | ||
| Cash Conversion | 69.07% | ||
| Profit Quality | 149.77% | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | N/A |
F-Score4
WACC8.45%
ROIC/WACC1.35
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)8.38%
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-9.94%
EBIT growth 3Y7.22%
EBIT growth 5Y43.09%
EBIT Next Year69.58%
EBIT Next 3Y23.54%
EBIT Next 5Y12.15%
FCF growth 1Y19.02%
FCF growth 3Y-37.64%
FCF growth 5Y24.35%
OCF growth 1Y6.82%
OCF growth 3Y-9.38%
OCF growth 5Y17.84%
VAR ENERGI ASA / VAR.OL FAQ
What is the ChartMill fundamental rating of VAR ENERGI ASA (VAR.OL) stock?
ChartMill assigns a fundamental rating of 5 / 10 to VAR.OL.
What is the valuation status of VAR ENERGI ASA (VAR.OL) stock?
ChartMill assigns a valuation rating of 8 / 10 to VAR ENERGI ASA (VAR.OL). This can be considered as Undervalued.
Can you provide the profitability details for VAR ENERGI ASA?
VAR ENERGI ASA (VAR.OL) has a profitability rating of 8 / 10.
Can you provide the financial health for VAR stock?
The financial health rating of VAR ENERGI ASA (VAR.OL) is 1 / 10.
Can you provide the expected EPS growth for VAR stock?
The Earnings per Share (EPS) of VAR ENERGI ASA (VAR.OL) is expected to grow by 296.31% in the next year.