VAR ENERGI ASA (VAR.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:VAR - NO0011202772 - Common Stock
31.425 NOK
+0.12 (+0.37%)
Overall VAR gets a fundamental rating of 6 out of 10. We evaluated VAR against 68 industry peers in the Oil, Gas & Consumable Fuels industry. VAR scores excellent on profitability, but 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
In the past year VAR was profitable.
VAR had a positive operating cash flow in the past year.
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 (2.34%) is comparable to the rest of the industry.
VAR's Return On Equity of 63.10% is amongst the best of the industry. VAR outperforms 98.53% of its industry peers.
VAR has a Return On Invested Capital of 11.44%. This is amongst the best in the industry. VAR outperforms 85.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VAR is significantly above the industry average of 9.16%.
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
VAR has a Profit Margin of 8.43%. This is in the better half of the industry: VAR outperforms 60.29% 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 95.59% of its industry peers.
In the last couple of years the Operating Margin of VAR has grown nicely.
With an excellent Gross Margin value of 81.10%, VAR belongs to the best of the industry, outperforming 88.24% 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 | 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
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.
Compared to 1 year ago, VAR has a worse debt to assets ratio.
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.
VAR's Debt to FCF ratio of 6.76 is in line compared to the rest of the industry. VAR outperforms 58.82% of 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's Debt to Equity ratio of 6.18 is on the low side compared to the rest of the industry. VAR is outperformed by 89.71% of its industry peers.
| 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 has a Current ratio of 0.75. This is amonst the worse of the industry: VAR underperforms 86.76% of its industry peers.
A Quick Ratio of 0.64 indicates that VAR may have some problems paying its short term obligations.
The Quick ratio of VAR (0.64) is worse than 86.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
VAR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.17%.
The Earnings Per Share has been growing by 31.78% on average over the past years. This is a very strong growth
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
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.
The Revenue is expected to grow by 2.56% on average over the next years.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 13.37.
Based on the Price/Earnings ratio, VAR is valued a bit cheaper than 61.76% of the companies in the same industry.
When comparing the Price/Earnings ratio of VAR to the average of the S&P500 Index (26.15), we can say VAR is valued slightly cheaper.
The Price/Forward Earnings ratio is 8.61, which indicates a very decent valuation of VAR.
Based on the Price/Forward Earnings ratio, VAR is valued a bit cheaper than 77.94% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VAR to the average of the S&P500 Index (36.12), we can say VAR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.37 | ||
| Fwd PE | 8.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VAR is valued cheaply inside the industry as 88.24% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, VAR is valued cheaper than 82.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.34 | ||
| EV/EBITDA | 2.41 |
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.
A more expensive valuation may be justified as VAR's earnings are expected to grow with 46.47% in the coming years.
PEG (NY)0.04
PEG (5Y)0.42
EPS Next 2Y80.03%
EPS Next 3Y46.47%
5. Dividend
5.1 Amount
VAR has a Yearly Dividend Yield of 14.76%, which is a nice return.
VAR's Dividend Yield is rather good when compared to the industry average which is at 53.12. VAR pays more dividend than 97.06% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, VAR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.76% |
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 2Y80.03%
EPS Next 3Y46.47%
OSL:VAR (11/27/2025, 4:19:56 PM)
31.425
+0.12 (+0.37%)
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 Cap78.45B
Revenue(TTM)7.41B
Net Income(TTM)613.50M
Analysts75.45
Price Target39.3 (25.06%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.76% |
Yearly Dividend4.43
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)-43.59%
PT rev (3m)0.55%
EPS NQ rev (1m)-15.34%
EPS NQ rev (3m)-24.36%
EPS NY rev (1m)-2.06%
EPS NY rev (3m)2.54%
Revenue NQ rev (1m)-1.6%
Revenue NQ rev (3m)-6.05%
Revenue NY rev (1m)-0.53%
Revenue NY rev (3m)-0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.37 | ||
| Fwd PE | 8.61 | ||
| P/S | 1.05 | ||
| P/FCF | 8.34 | ||
| P/OCF | 2.03 | ||
| P/B | 7.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.41 |
EPS(TTM)2.35
EY7.48%
EPS(NY)3.65
Fwd EY11.61%
FCF(TTM)3.77
FCFY11.99%
OCF(TTM)15.48
OCFY49.25%
SpS29.82
BVpS3.99
TBVpS-12.25
PEG (NY)0.04
PEG (5Y)0.42
Graham Number14.52
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 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 6 / 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 9 / 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.