VAR ENERGI ASA (VAR.OL) Stock Fundamental Analysis
Europe • Euronext Oslo • OSL:VAR • NO0011202772
34.87 NOK
+0.01 (+0.03%)
Last: Jan 30, 2026, 07:00 PM
VAR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 72 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 is valued quite cheap, while showing a decent growth score. This is a good 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
- The Return On Assets of VAR (2.19%) is worse than 66.67% of its industry peers.
- The Return On Equity of VAR (70.22%) is better than 98.61% of its industry peers.
- VAR has a Return On Invested Capital of 10.78%. This is amongst the best in the industry. VAR outperforms 86.11% 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 8.83%.
- 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
- With a Profit Margin value of 7.75%, VAR perfoms like the industry average, outperforming 54.17% of the companies in the same industry.
- VAR's Profit Margin has improved in the last couple of years.
- VAR has a better Operating Margin (43.98%) than 95.83% 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 88.89% of the companies in the same industry.
- 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
- The debt/assets ratio for VAR is higher compared to a year ago.
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.
- With a Debt to FCF ratio value of 7.35, VAR perfoms like the industry average, outperforming 50.00% 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.
- Looking at the Debt to Equity ratio, with a value of 7.19, VAR is doing worse than 95.83% of the companies in the same industry.
| 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.
- Looking at the Current ratio, with a value of 0.72, VAR is doing worse than 86.11% of the companies in the same industry.
- A Quick Ratio of 0.61 indicates that VAR may have some problems paying its short term obligations.
- VAR has a Quick ratio of 0.61. This is amonst the worse of the industry: VAR underperforms 84.72% 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
- 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.
- VAR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.56% yearly.
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
- 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 15.85, the valuation of VAR can be described as correct.
- 62.50% of the companies in the same industry are more expensive than VAR, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.32. VAR is valued slightly cheaper when compared to this.
- VAR is valuated reasonably with a Price/Forward Earnings ratio of 10.51.
- Based on the Price/Forward Earnings ratio, VAR is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
- VAR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.85 | ||
| Fwd PE | 10.51 |
4.2 Price Multiples
- 88.89% of the companies in the same industry are more expensive than VAR, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, VAR is valued a bit cheaper than the industry average as 76.39% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.71 | ||
| EV/EBITDA | 2.55 |
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.
- The excellent profitability rating of VAR may justify a higher PE ratio.
- A more expensive valuation may be justified as VAR's earnings are expected to grow with 47.32% in the coming years.
PEG (NY)0.06
PEG (5Y)0.5
EPS Next 2Y77.66%
EPS Next 3Y47.32%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 14.02%, VAR is a good candidate for dividend investing.
- VAR's Dividend Yield is rather good when compared to the industry average which is at 5.02. VAR pays more dividend than 98.61% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.83, VAR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.02% |
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 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%.