VAR ENERGI ASA (VAR.OL) Stock Fundamental Analysis
OSL:VAR - Euronext Oslo - NO0011202772 - Common Stock - Currency: NOK
We assign a fundamental rating of 6 out of 10 to VAR. VAR was compared to 59 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. An interesting combination arises when we look at growth and value: VAR is growing strongly while it also seems undervalued.
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 has a Return On Assets of 2.56%. This is in the lower half of the industry: VAR underperforms 66.13% of its industry peers.
Looking at the Return On Equity, with a value of 61.32%, VAR belongs to the top of the industry, outperforming 93.55% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.35%, VAR belongs to the top of the industry, outperforming 82.26% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VAR is significantly above the industry average of 15.03%.
The last Return On Invested Capital (13.35%) 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 | 2.56% | ||
| ROE | 61.32% | ||
| ROIC | 13.35% |
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 (8.40%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of VAR has grown nicely.
Looking at the Operating Margin, with a value of 50.85%, VAR belongs to the top of the industry, outperforming 95.16% of the companies in the same industry.
VAR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 82.00%, VAR belongs to the top of the industry, outperforming 87.10% 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 | 50.85% | ||
| PM (TTM) | 8.4% | ||
| GM | 82% |
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.
VAR has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of VAR is 6.47, which is on the high side as it means it would take VAR, 6.47 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.47, VAR perfoms like the industry average, outperforming 54.84% of the companies in the same industry.
VAR has a Debt/Equity ratio of 5.33. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 5.33, VAR is not doing good in the industry: 95.16% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.33 | ||
| Debt/FCF | 6.47 | ||
| Altman-Z | N/A |
ROIC/WACC1.56
WACC8.53%
2.3 Liquidity
VAR has a Current Ratio of 0.67. 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 0.67 is on the low side compared to the rest of the industry. VAR is outperformed by 91.94% of its industry peers.
A Quick Ratio of 0.57 indicates that VAR may have some problems paying its short term obligations.
VAR has a Quick ratio of 0.57. This is amonst the worse of the industry: VAR underperforms 95.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
VAR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.05%, which is quite good.
The Earnings Per Share has been growing by 31.78% on average over the past years. This is a very strong growth
Looking at the last year, VAR shows a quite strong growth in Revenue. The Revenue has grown by 9.75% 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)19.05%
EPS 3Y-21.91%
EPS 5Y31.78%
EPS Q2Q%350%
Revenue 1Y (TTM)9.75%
Revenue growth 3Y6.86%
Revenue growth 5Y20.92%
Sales Q2Q%-5.94%
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 27.71% on average per year.
The Revenue is expected to grow by 1.78% on average over the next years.
EPS Next Y294.2%
EPS Next 2Y101.89%
EPS Next 3Y58.38%
EPS Next 5Y27.71%
Revenue Next Year15.44%
Revenue Next 2Y13.37%
Revenue Next 3Y7.76%
Revenue Next 5Y1.78%
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 13.19.
The rest of the industry has a similar Price/Earnings ratio as VAR.
The average S&P500 Price/Earnings ratio is at 27.45. VAR is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.36, which indicates a rather cheap valuation of VAR.
VAR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VAR is cheaper than 77.42% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.89. VAR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.19 | ||
| Fwd PE | 7.36 |
4.2 Price Multiples
82.26% 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 66.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.57 | ||
| EV/EBITDA | 2.35 |
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 58.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.04
PEG (5Y)0.42
EPS Next 2Y101.89%
EPS Next 3Y58.38%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 14.58%, VAR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 60.01, VAR pays a better dividend. On top of this VAR pays more dividend than 93.55% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, VAR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.58% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
174.58% of the earnings are spent on dividend by VAR. This is not a sustainable payout ratio.
DP174.58%
EPS Next 2Y101.89%
EPS Next 3Y58.38%
OSL:VAR (7/4/2025, 7:00:00 PM)
33.24
+0.16 (+0.48%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners16.13%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap82.98B
Analysts77.27
Price Target38.26 (15.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.58% |
Yearly Dividend4.36
Dividend Growth(5Y)N/A
DP174.58%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-205.74%
Min EPS beat(2)-446.49%
Max EPS beat(2)35.01%
EPS beat(4)1
Avg EPS beat(4)-111.29%
Min EPS beat(4)-446.49%
Max EPS beat(4)35.01%
EPS beat(8)1
Avg EPS beat(8)-72.88%
EPS beat(12)1
Avg EPS beat(12)-68.59%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-6.7%
Min Revenue beat(2)-6.74%
Max Revenue beat(2)-6.67%
Revenue beat(4)0
Avg Revenue beat(4)-5.87%
Min Revenue beat(4)-6.74%
Max Revenue beat(4)-4.3%
Revenue beat(8)0
Avg Revenue beat(8)-4.8%
Revenue beat(12)0
Avg Revenue beat(12)-4.93%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.39%
PT rev (3m)-8.58%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)-4.51%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.1%
Revenue NQ rev (1m)-3.54%
Revenue NQ rev (3m)-11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.19 | ||
| Fwd PE | 7.36 | ||
| P/S | 1.12 | ||
| P/FCF | 9.57 | ||
| P/OCF | 2.21 | ||
| P/B | 8.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.35 |
EPS(TTM)2.52
EY7.58%
EPS(NY)4.51
Fwd EY13.58%
FCF(TTM)3.47
FCFY10.45%
OCF(TTM)15.01
OCFY45.15%
SpS29.71
BVpS4.07
TBVpS-11.9
PEG (NY)0.04
PEG (5Y)0.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.56% | ||
| ROE | 61.32% | ||
| ROCE | 17.34% | ||
| ROIC | 13.35% | ||
| ROICexc | 13.75% | ||
| ROICexgc | 16.95% | ||
| OM | 50.85% | ||
| PM (TTM) | 8.4% | ||
| GM | 82% | ||
| FCFM | 11.69% |
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
ROICexcg growth 3Y4.04%
ROICexcg 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-Score6
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.33 | ||
| Debt/FCF | 6.47 | ||
| Debt/EBITDA | 0.96 | ||
| Cap/Depr | 152.81% | ||
| Cap/Sales | 38.83% | ||
| Interest Coverage | 9.9 | ||
| Cash Conversion | 66.24% | ||
| Profit Quality | 139.23% | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | N/A |
F-Score6
WACC8.53%
ROIC/WACC1.56
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)19.05%
EPS 3Y-21.91%
EPS 5Y31.78%
EPS Q2Q%350%
EPS Next Y294.2%
EPS Next 2Y101.89%
EPS Next 3Y58.38%
EPS Next 5Y27.71%
Revenue 1Y (TTM)9.75%
Revenue growth 3Y6.86%
Revenue growth 5Y20.92%
Sales Q2Q%-5.94%
Revenue Next Year15.44%
Revenue Next 2Y13.37%
Revenue Next 3Y7.76%
Revenue Next 5Y1.78%
EBIT growth 1Y1.99%
EBIT growth 3Y7.22%
EBIT growth 5Y43.09%
EBIT Next Year74.53%
EBIT Next 3Y24.63%
EBIT Next 5Y11.44%
FCF growth 1Y-60.42%
FCF growth 3Y-37.64%
FCF growth 5Y24.35%
OCF growth 1Y-23.1%
OCF growth 3Y-9.38%
OCF growth 5Y17.84%