VAR ENERGI ASA (VAR.OL) Stock Fundamental Analysis
Europe - OSL:VAR - NO0011202772 - Common Stock
33.13 NOK
+1.33 (+4.18%)
We assign a fundamental rating of 5 out of 10 to VAR. VAR was compared to 63 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 is valued quite cheap, while showing a decent growth score. This is a good 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.
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 worse Return On Assets (2.34%) than 60.32% of its industry peers.
Looking at the Return On Equity, with a value of 63.10%, VAR belongs to the top of the industry, outperforming 98.41% of the companies in the same industry.
VAR has a better Return On Invested Capital (11.44%) than 84.13% 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 9.34%.
The last Return On Invested Capital (11.44%) 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 | 2.34% | ||
| 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
With a Profit Margin value of 8.43%, VAR perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
In the last couple of years the Profit Margin of VAR has grown nicely.
VAR has a better Operating Margin (48.19%) than 95.24% of its industry peers.
VAR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 81.10%, VAR belongs to the top of the industry, outperforming 87.30% 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.
Compared to 1 year ago, VAR has about the same amount of shares outstanding.
Compared to 5 years ago, VAR has about the same amount of shares outstanding.
The debt/assets ratio for VAR is higher compared to a year ago.
2.2 Solvency
VAR has a debt to FCF ratio of 6.76. This is a slightly negative value and a sign of low solvency as VAR would need 6.76 years to pay back of all of its debts.
With a Debt to FCF ratio value of 6.76, VAR perfoms like the industry average, outperforming 57.14% 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: 95.24% 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 has a worse Current ratio (0.75) than 92.06% of its industry peers.
A Quick Ratio of 0.64 indicates that VAR may have some problems paying its short term obligations.
VAR has a Quick ratio of 0.64. This is amonst the worse of the industry: VAR underperforms 92.06% 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%.
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.
Looking at the last year, VAR shows a quite strong growth in Revenue. The Revenue has grown by 8.38% 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)-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.
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
The Price/Earnings ratio is 14.22, which indicates a correct valuation of VAR.
Based on the Price/Earnings ratio, VAR is valued a bit cheaper than the industry average as 60.32% of the companies are valued more expensively.
VAR is valuated rather cheaply when we compare the Price/Earnings ratio to 25.07, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.16, which indicates a very decent valuation of VAR.
Based on the Price/Forward Earnings ratio, VAR is valued a bit cheaper than the industry average as 73.02% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.08. VAR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.22 | ||
| Fwd PE | 9.16 |
4.2 Price Multiples
87.30% of the companies in the same industry are more expensive than VAR, based on the Enterprise Value to EBITDA ratio.
77.78% of the companies in the same industry are more expensive than VAR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.87 | ||
| 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.
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)0.45
EPS Next 2Y80.03%
EPS Next 3Y46.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 14.03%, VAR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 58.54, VAR pays a better dividend. On top of this VAR pays more dividend than 96.83% 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.03% |
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 (11/20/2025, 7:00:00 PM)
33.13
+1.33 (+4.18%)
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 Cap82.71B
Revenue(TTM)7.41B
Net Income(TTM)613.50M
Analysts75.45
Price Target39.37 (18.83%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.03% |
Yearly Dividend4.36
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)-43.5%
PT rev (3m)0.71%
EPS NQ rev (1m)-15.34%
EPS NQ rev (3m)-24.36%
EPS NY rev (1m)-2.06%
EPS NY rev (3m)8.34%
Revenue NQ rev (1m)-1.6%
Revenue NQ rev (3m)-6.05%
Revenue NY rev (1m)-0.53%
Revenue NY rev (3m)-0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.22 | ||
| Fwd PE | 9.16 | ||
| P/S | 1.12 | ||
| P/FCF | 8.87 | ||
| P/OCF | 2.16 | ||
| P/B | 8.39 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.46 |
EPS(TTM)2.33
EY7.03%
EPS(NY)3.62
Fwd EY10.91%
FCF(TTM)3.73
FCFY11.27%
OCF(TTM)15.34
OCFY46.31%
SpS29.56
BVpS3.95
TBVpS-12.14
PEG (NY)0.04
PEG (5Y)0.45
Graham Number14.39
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 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 327.07% in the next year.