VAR Fundamental Analysis - VAR ENERGI ASA

Fundamental Rating

VAR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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. VAR has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!

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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.

VAR had positive earnings in 4 of the past 5 years.

In the past 5 years VAR always reported a positive cash flow from operatings.

1.2 Ratios

Looking at the Return On Assets, with a value of 2.56%, VAR is doing worse than 64.41% of the companies in the same industry.

With an excellent Return On Equity value of 61.32%, VAR belongs to the best of the industry, outperforming 93.22% of the companies in the same industry.

VAR's Return On Invested Capital of 13.35% is amongst the best of the industry. VAR outperforms 81.36% of its industry peers.

The Average Return On Invested Capital over the past 3 years for VAR is significantly above the industry average of 15.03%.

The 3 year average ROIC (22.49%) for VAR is well above the current ROIC(13.35%). The reason for the recent decline needs to be investigated.

		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

VAR has a Profit Margin (8.40%) which is in line with its industry peers.

VAR's Profit Margin has improved in the last couple of years.

VAR has a better Operating Margin (50.85%) than 94.92% of its industry peers.

In the last couple of years the Operating Margin of VAR has grown nicely.

VAR's Gross Margin of 82.00% is amongst the best of the industry. VAR outperforms 86.44% of its industry peers.

VAR's Gross Margin has improved in the last couple of years.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.

VAR has about the same amout of shares outstanding than it did 1 year ago.

VAR has about the same amout of shares outstanding than it did 5 years ago.

Compared to 1 year ago, VAR has a worse debt to assets ratio.

2.2 Solvency

VAR has a debt to FCF ratio of 6.47. This is a slightly negative value and a sign of low solvency as VAR would need 6.47 years to pay back of all of its debts.

With a Debt to FCF ratio value of 6.47, VAR perfoms like the industry average, outperforming 55.93% of the companies in the same industry.

A Debt/Equity ratio of 5.33 is on the high side and indicates that VAR has dependencies on debt financing.

VAR has a Debt to Equity ratio of 5.33. This is amonst the worse of the industry: VAR underperforms 94.92% of its industry peers.

		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 has a worse Current ratio (0.67) than 91.53% of its industry peers.

VAR has a Quick 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 Quick ratio of 0.57 is on the low side compared to the rest of the industry. VAR is outperformed by 94.92% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.67
Quick Ratio	0.57

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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.

VAR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.78% yearly.

Looking at the last year, VAR shows a quite strong growth in Revenue. The Revenue has grown by 9.75% in the last 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)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

The Earnings Per Share is expected to grow by 27.71% on average over the next years. This is a very strong growth

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.

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4. Valuation

4.1 Price/Earnings Ratio

VAR is valuated correctly with a Price/Earnings ratio of 13.09.

VAR's Price/Earnings ratio is in line with the industry average.

VAR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.29.

A Price/Forward Earnings ratio of 7.30 indicates a rather cheap valuation of VAR.

Based on the Price/Forward Earnings ratio, VAR is valued a bit cheaper than 76.27% of the companies in the same industry.

The average S&P500 Price/Forward Earnings ratio is at 21.74. VAR is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	13.09
Fwd PE	7.3

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VAR indicates a rather cheap valuation: VAR is cheaper than 81.36% of the companies listed in the same industry.

Based on the Price/Free Cash Flow ratio, VAR is valued a bit cheaper than the industry average as 64.41% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	9.48
EV/EBITDA	2.34

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.

The excellent profitability rating of VAR 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)0.41

EPS Next 2Y101.89%

EPS Next 3Y58.38%

More info and screens

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5. Dividend

5.1 Amount

VAR has a Yearly Dividend Yield of 14.58%, which is a nice return.

Compared to an average industry Dividend Yield of 60.01, VAR pays a better dividend. On top of this VAR pays more dividend than 93.22% of the companies listed in the same industry.

VAR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.

		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

VAR pays out 174.58% of its income as dividend. This is not a sustainable payout ratio.

DP174.58%

EPS Next 2Y101.89%

EPS Next 3Y58.38%

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VAR ENERGI ASA

OSL:VAR (7/8/2025, 9:51:18 AM)

33.13

-0.08 (-0.24%)

Chartmill FA Rating

GICS SectorEnergy

GICS IndustryGroupEnergy

GICS IndustryOil, Gas & Consumable Fuels

Earnings (Last)04-23 2025-04-23/bmo

Earnings (Next)07-11 2025-07-11

Inst Owners16.13%

Inst Owner ChangeN/A

Ins Owners0.06%

Ins Owner ChangeN/A

Market Cap82.71B

Analysts77.27

Price Target38.26 (15.48%)

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	13.09
Fwd PE	7.3
P/S	1.11
P/FCF	9.48
P/OCF	2.19
P/B	8.1
P/tB	N/A
EV/EBITDA	2.34

EPS(TTM)2.53

EY7.64%

EPS(NY)4.54

Fwd EY13.7%

FCF(TTM)3.49

FCFY10.54%

OCF(TTM)15.09

OCFY45.56%

SpS29.88

BVpS4.09

TBVpS-11.97

PEG (NY)0.04

PEG (5Y)0.41

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%

VAR ENERGI ASA (VAR.OL) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

More info and screens