VAR ENERGI ASA (VAR.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:VAR - NO0011202772 - Common Stock
32.16 NOK
+0.41 (+1.29%)
Taking everything into account, VAR scores 5 out of 10 in our fundamental rating. VAR was compared to 69 industry peers in the Oil, Gas & Consumable Fuels industry. While VAR belongs to the best of the industry regarding profitability, 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
VAR had positive earnings in the past year.
VAR had a positive operating cash flow in the past year.
Of the past 5 years VAR 4 years were profitable.
VAR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of VAR (2.34%) is worse than 62.86% of its industry peers.
VAR has a Return On Equity of 63.10%. This is amongst the best in the industry. VAR outperforms 98.57% of its industry peers.
VAR's Return On Invested Capital of 11.44% is amongst the best of the industry. VAR outperforms 85.71% of its industry peers.
VAR had an Average Return On Invested Capital over the past 3 years of 22.49%. This is significantly above the industry average of 9.17%.
The 3 year average ROIC (22.49%) for VAR is well above the current ROIC(11.44%). The reason for the recent decline needs to be investigated.
| 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.
VAR's Profit Margin has improved in the last couple of years.
VAR has a better Operating Margin (48.19%) than 95.71% 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 88.57% of its industry peers.
In the last couple of years the Gross Margin of VAR has grown nicely.
| 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.
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.
The debt/assets ratio for VAR is higher compared to a year ago.
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.
Looking at the Debt to FCF ratio, with a value of 6.76, VAR is in line with its industry, outperforming 52.86% 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: 95.71% 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's Current ratio of 0.75 is on the low side compared to the rest of the industry. VAR is outperformed by 88.57% 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.
VAR has a Quick ratio of 0.64. This is amonst the worse of the industry: VAR underperforms 88.57% of its industry peers.
| 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.
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.
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
The Earnings Per Share is expected to grow by 28.39% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 2.56% on average over the next years.
EPS Next Y290.92%
EPS Next 2Y78.11%
EPS Next 3Y45.8%
EPS Next 5Y28.39%
Revenue Next Year12.12%
Revenue Next 2Y11.29%
Revenue Next 3Y6.56%
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
A Price/Earnings ratio of 13.86 indicates a correct valuation of VAR.
Based on the Price/Earnings ratio, VAR is valued a bit cheaper than the industry average as 62.86% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.49, VAR is valued a bit cheaper.
The Price/Forward Earnings ratio is 9.13, which indicates a very decent valuation of VAR.
77.14% of the companies in the same industry are more expensive than VAR, based on the Price/Forward Earnings ratio.
VAR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.86 | ||
| Fwd PE | 9.13 |
4.2 Price Multiples
VAR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VAR is cheaper than 90.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VAR is valued a bit cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.66 | ||
| EV/EBITDA | 2.46 |
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 45.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.05
PEG (5Y)0.44
EPS Next 2Y78.11%
EPS Next 3Y45.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 15.40%, VAR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 7.80, VAR pays a better dividend. On top of this VAR pays more dividend than 98.57% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, VAR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.4% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
180.93% of the earnings are spent on dividend by VAR. This is not a sustainable payout ratio.
DP180.93%
EPS Next 2Y78.11%
EPS Next 3Y45.8%
OSL:VAR (12/5/2025, 4:25:15 PM)
32.16
+0.41 (+1.29%)
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 Cap80.28B
Revenue(TTM)7.41B
Net Income(TTM)613.50M
Analysts75.45
Price Target39.38 (22.45%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.4% |
Yearly Dividend4.37
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)0.03%
PT rev (3m)-0.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-24.36%
EPS NY rev (1m)-8.47%
EPS NY rev (3m)-6.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.05%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)-1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.86 | ||
| Fwd PE | 9.13 | ||
| P/S | 1.09 | ||
| P/FCF | 8.66 | ||
| P/OCF | 2.11 | ||
| P/B | 8.18 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.46 |
EPS(TTM)2.32
EY7.21%
EPS(NY)3.52
Fwd EY10.95%
FCF(TTM)3.72
FCFY11.55%
OCF(TTM)15.27
OCFY47.48%
SpS29.42
BVpS3.93
TBVpS-12.08
PEG (NY)0.05
PEG (5Y)0.44
Graham Number14.33
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 Y290.92%
EPS Next 2Y78.11%
EPS Next 3Y45.8%
EPS Next 5Y28.39%
Revenue 1Y (TTM)8.38%
Revenue growth 3Y6.86%
Revenue growth 5Y20.92%
Sales Q2Q%14.4%
Revenue Next Year12.12%
Revenue Next 2Y11.29%
Revenue Next 3Y6.56%
Revenue Next 5Y2.56%
EBIT growth 1Y-9.94%
EBIT growth 3Y7.22%
EBIT growth 5Y43.09%
EBIT Next Year70.24%
EBIT Next 3Y24.12%
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 290.92% in the next year.