VAR ENERGI ASA (VAR.OL) Stock Fundamental Analysis
Europe - OSL:VAR - NO0011202772 - Common Stock
34.84 NOK
-0.23 (-0.66%)
VAR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 63 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on VAR.
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 has a worse Return On Assets (2.34%) than 63.49% of its industry peers.
VAR's Return On Equity of 63.10% is amongst the best of the industry. VAR outperforms 98.41% of its industry peers.
VAR has a Return On Invested Capital of 11.44%. This is amongst the best in the industry. VAR outperforms 84.13% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VAR is significantly above the industry average of 9.53%.
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
VAR has a Profit Margin of 8.43%. This is comparable to the rest of the industry: VAR outperforms 57.14% of its industry peers.
In the last couple of years the Profit Margin of VAR has grown nicely.
VAR has a Operating Margin of 48.19%. This is amongst the best in the industry. VAR outperforms 95.24% of its industry peers.
VAR's Operating Margin has improved in the last couple of years.
VAR's Gross Margin of 81.10% is amongst the best of the industry. VAR outperforms 85.71% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), VAR is creating value.
Compared to 1 year ago, VAR has about the same amount of shares outstanding.
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 6.76. This is a slightly negative value and a sign of low solvency as VAR would need 6.76 years to pay back of all of its debts.
VAR has a Debt to FCF ratio (6.76) which is in line with its industry peers.
A Debt/Equity ratio of 6.18 is on the high side and indicates that VAR has dependencies on debt financing.
VAR has a worse Debt to Equity ratio (6.18) than 95.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.18 | ||
| Debt/FCF | 6.76 | ||
| Altman-Z | N/A |
ROIC/WACC1.35
WACC8.46%
2.3 Liquidity
VAR has a Current Ratio of 0.75. 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 0.75 is on the low side compared to the rest of the industry. VAR is outperformed by 92.06% of its industry peers.
VAR has a Quick Ratio of 0.75. This is a bad value and indicates that VAR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.64, VAR is doing worse than 92.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The earnings per share for VAR have decreased by -4.17% in the last year.
VAR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.78% yearly.
VAR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.38%.
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
VAR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.39% yearly.
VAR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.56% yearly.
EPS Next Y327.07%
EPS Next 2Y80.03%
EPS Next 3Y46.47%
EPS Next 5Y28.39%
Revenue Next Year12.57%
Revenue Next 2Y11.68%
Revenue Next 3Y6.71%
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 15.02.
Compared to the rest of the industry, the Price/Earnings ratio of VAR is on the same level as its industry peers.
VAR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.34.
With a Price/Forward Earnings ratio of 9.70, the valuation of VAR can be described as very reasonable.
Based on the Price/Forward Earnings ratio, VAR is valued a bit cheaper than 65.08% of the companies in the same industry.
VAR is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.02 | ||
| Fwd PE | 9.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VAR is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, VAR is valued a bit cheaper than the industry average as 74.60% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.4 | ||
| EV/EBITDA | 2.6 |
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.
A more expensive valuation may be justified as VAR's earnings are expected to grow with 46.47% in the coming years.
PEG (NY)0.05
PEG (5Y)0.47
EPS Next 2Y80.03%
EPS Next 3Y46.47%
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 56.29, VAR pays a better dividend. On top of this VAR pays more dividend than 98.41% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, VAR pays a better dividend.
| 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 180.93% of its income as dividend. This is not a sustainable payout ratio.
DP180.93%
EPS Next 2Y80.03%
EPS Next 3Y46.47%
OSL:VAR (11/12/2025, 7:00:00 PM)
34.84
-0.23 (-0.66%)
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 Cap86.97B
Revenue(TTM)7.41B
Net Income(TTM)613.50M
Analysts75.45
Price Target39.37 (13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.44% |
Yearly Dividend4.41
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)-43.5%
PT rev (3m)0.71%
EPS NQ rev (1m)-24.36%
EPS NQ rev (3m)-24.36%
EPS NY rev (1m)-2.06%
EPS NY rev (3m)8.34%
Revenue NQ rev (1m)-6.05%
Revenue NQ rev (3m)-6.05%
Revenue NY rev (1m)-0.53%
Revenue NY rev (3m)-0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.02 | ||
| Fwd PE | 9.7 | ||
| P/S | 1.19 | ||
| P/FCF | 9.4 | ||
| P/OCF | 2.29 | ||
| P/B | 8.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.6 |
EPS(TTM)2.32
EY6.66%
EPS(NY)3.59
Fwd EY10.31%
FCF(TTM)3.71
FCFY10.64%
OCF(TTM)15.24
OCFY43.74%
SpS29.36
BVpS3.92
TBVpS-12.06
PEG (NY)0.05
PEG (5Y)0.47
Graham Number14.31
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
WACC8.46%
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 Y327.07%
EPS Next 2Y80.03%
EPS Next 3Y46.47%
EPS Next 5Y28.39%
Revenue 1Y (TTM)8.38%
Revenue growth 3Y6.86%
Revenue growth 5Y20.92%
Sales Q2Q%14.4%
Revenue Next Year12.57%
Revenue Next 2Y11.68%
Revenue Next 3Y6.71%
Revenue Next 5Y2.56%
EBIT growth 1Y-9.94%
EBIT growth 3Y7.22%
EBIT growth 5Y43.09%
EBIT Next Year73.34%
EBIT Next 3Y24.72%
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 327.07% in the next year.