VAR ENERGI ASA (VAR.OL) Stock Fundamental Analysis
Europe - OSL:VAR - NO0011202772 - Common Stock
32.035 NOK
+0.15 (+0.49%)
VAR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 62 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 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.
In the past year VAR had a positive cash flow from operations.
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
VAR has a worse Return On Assets (2.34%) than 64.52% of its industry peers.
The Return On Equity of VAR (63.10%) is better than 98.39% of its industry peers.
VAR has a Return On Invested Capital of 11.44%. This is amongst the best in the industry. VAR outperforms 82.26% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VAR is significantly above the industry average of 9.70%.
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.
VAR's Profit Margin has improved in the last couple of years.
VAR has a Operating Margin of 48.19%. This is amongst the best in the industry. VAR outperforms 95.16% of its industry peers.
VAR's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 81.10%, VAR belongs to the best of the industry, outperforming 87.10% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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
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 59.68% 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 has a Debt to Equity ratio of 6.18. This is amonst the worse of the industry: VAR underperforms 95.16% 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's Current ratio of 0.75 is on the low side compared to the rest of the industry. VAR is outperformed by 87.10% 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 90.32% 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 0.00% 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
VAR shows a small growth in Revenue. In the last year, the Revenue has grown by 0.82%.
The Revenue has been growing by 20.92% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)0%
EPS 3Y-21.91%
EPS 5Y31.78%
EPS Q2Q%0%
Revenue 1Y (TTM)0.82%
Revenue growth 3Y6.86%
Revenue growth 5Y20.92%
Sales Q2Q%-4.7%
3.2 Future
VAR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.73% yearly.
The Revenue is expected to grow by 2.37% on average over the next years.
EPS Next Y336.07%
EPS Next 2Y91.64%
EPS Next 3Y53.92%
EPS Next 5Y28.73%
Revenue Next Year13.17%
Revenue Next 2Y11.46%
Revenue Next 3Y6.46%
Revenue Next 5Y2.37%
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
Based on the Price/Earnings ratio of 12.76, the valuation of VAR can be described as correct.
VAR's Price/Earnings ratio is a bit cheaper when compared to the industry. VAR is cheaper than 62.90% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.42, VAR is valued rather cheaply.
The Price/Forward Earnings ratio is 7.90, which indicates a rather cheap valuation of VAR.
75.81% of the companies in the same industry are more expensive than VAR, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, VAR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.76 | ||
| Fwd PE | 7.9 |
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 85.48% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VAR indicates a somewhat cheap valuation: VAR is cheaper than 74.19% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.67 | ||
| EV/EBITDA | 2.46 |
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 53.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.04
PEG (5Y)0.4
EPS Next 2Y91.64%
EPS Next 3Y53.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 15.06%, VAR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 58.97, VAR pays a better dividend. On top of this VAR pays more dividend than 96.77% 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.06% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
VAR pays out 180.93% of its income as dividend. This is not a sustainable payout ratio.
DP180.93%
EPS Next 2Y91.64%
EPS Next 3Y53.92%
OSL:VAR (10/20/2025, 3:30:08 PM)
32.035
+0.15 (+0.49%)
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 Cap79.97B
Analysts74.29
Price Target69.67 (117.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 15.06% |
Yearly Dividend4.34
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)73.61%
PT rev (3m)81.12%
EPS NQ rev (1m)-10.65%
EPS NQ rev (3m)-15.52%
EPS NY rev (1m)4.7%
EPS NY rev (3m)10.62%
Revenue NQ rev (1m)-4.53%
Revenue NQ rev (3m)-2.34%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)-1.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.76 | ||
| Fwd PE | 7.9 | ||
| P/S | 1.09 | ||
| P/FCF | 8.67 | ||
| P/OCF | 2.11 | ||
| P/B | 8.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.46 |
EPS(TTM)2.51
EY7.84%
EPS(NY)4.06
Fwd EY12.66%
FCF(TTM)3.7
FCFY11.54%
OCF(TTM)15.19
OCFY47.41%
SpS29.26
BVpS3.91
TBVpS-12.02
PEG (NY)0.04
PEG (5Y)0.4
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
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-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)0%
EPS 3Y-21.91%
EPS 5Y31.78%
EPS Q2Q%0%
EPS Next Y336.07%
EPS Next 2Y91.64%
EPS Next 3Y53.92%
EPS Next 5Y28.73%
Revenue 1Y (TTM)0.82%
Revenue growth 3Y6.86%
Revenue growth 5Y20.92%
Sales Q2Q%-4.7%
Revenue Next Year13.17%
Revenue Next 2Y11.46%
Revenue Next 3Y6.46%
Revenue Next 5Y2.37%
EBIT growth 1Y-9.94%
EBIT growth 3Y7.22%
EBIT growth 5Y43.09%
EBIT Next Year73.34%
EBIT Next 3Y24.72%
EBIT Next 5Y13.68%
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%