VAR ENERGI ASA (VAR.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:VAR - NO0011202772 - Common Stock
31.675 NOK
-0.43 (-1.32%)
VAR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 67 industry peers in the Oil, Gas & Consumable Fuels industry. VAR has an excellent profitability rating, but there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on VAR.
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.
VAR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.34%, VAR is not doing good in the industry: 64.18% of the companies in the same industry are doing better.
VAR's Return On Equity of 63.10% is amongst the best of the industry. VAR outperforms 98.51% of its industry peers.
VAR has a Return On Invested Capital of 11.44%. This is amongst the best in the industry. VAR outperforms 83.58% 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 9.18%.
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 (8.43%) which is in line with its industry peers.
In the last couple of years the Profit Margin of VAR has grown nicely.
With an excellent Operating Margin value of 48.19%, VAR belongs to the best of the industry, outperforming 95.52% of the companies in the same industry.
In the last couple of years the Operating Margin of VAR has grown nicely.
VAR's Gross Margin of 81.10% is amongst the best of the industry. VAR outperforms 88.06% of its industry peers.
VAR's Gross Margin has improved in the last couple of years.
| 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
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 6.76. 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.
VAR's Debt to FCF ratio of 6.76 is in line compared to the rest of the industry. VAR outperforms 56.72% of its industry peers.
VAR has a Debt/Equity ratio of 6.18. This is a high value indicating a heavy dependency on external financing.
VAR has a worse Debt to Equity ratio (6.18) than 95.52% 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
VAR has a Current 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 Current ratio of 0.75. This is amonst the worse of the industry: VAR underperforms 86.57% 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 86.57% 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.
The Earnings Per Share has been growing by 31.78% on average over the past years. This is a very strong growth
The Revenue has grown by 8.38% in the past year. This is quite good.
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)-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
VAR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.39% yearly.
Based on estimates for the next years, VAR will show a small growth in Revenue. The Revenue will grow by 2.56% on average per year.
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
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
VAR is valuated correctly with a Price/Earnings ratio of 13.59.
VAR's Price/Earnings is on the same level as the industry average.
VAR is valuated rather cheaply when we compare the Price/Earnings ratio to 26.55, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.96, the valuation of VAR can be described as reasonable.
Based on the Price/Forward Earnings ratio, VAR is valued a bit cheaper than the industry average as 74.63% of the companies are valued more expensively.
VAR is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.59 | ||
| Fwd PE | 8.96 |
4.2 Price Multiples
88.06% 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 cheaply inside the industry as 80.60% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.49 | ||
| EV/EBITDA | 2.45 |
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.
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 45.80% in the coming years.
PEG (NY)0.05
PEG (5Y)0.43
EPS Next 2Y78.11%
EPS Next 3Y45.8%
5. Dividend
5.1 Amount
VAR has a Yearly Dividend Yield of 15.27%, which is a nice return.
VAR's Dividend Yield is rather good when compared to the industry average which is at 3.82. VAR pays more dividend than 100.00% of the companies in the same industry.
VAR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.27% |
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 (12/16/2025, 12:20:49 PM)
31.675
-0.43 (-1.32%)
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 Cap79.07B
Revenue(TTM)7.41B
Net Income(TTM)613.50M
Analysts75.45
Price Target39.38 (24.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.27% |
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)-1.88%
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)-1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.59 | ||
| Fwd PE | 8.96 | ||
| P/S | 1.07 | ||
| P/FCF | 8.49 | ||
| P/OCF | 2.07 | ||
| P/B | 8.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.45 |
EPS(TTM)2.33
EY7.36%
EPS(NY)3.54
Fwd EY11.16%
FCF(TTM)3.73
FCFY11.77%
OCF(TTM)15.32
OCFY48.38%
SpS29.52
BVpS3.95
TBVpS-12.12
PEG (NY)0.05
PEG (5Y)0.43
Graham Number14.38
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.