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VAR ENERGI ASA (VAR.OL) Stock Fundamental Analysis

OSL:VAR - Euronext Oslo - NO0011202772 - Common Stock - Currency: NOK

34.26  +0.24 (+0.71%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to VAR. VAR was compared to 60 industry peers in the Oil, Gas & Consumable Fuels industry. VAR scores excellent on profitability, but there are 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!


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

In the past year VAR was profitable.
In the past year VAR had a positive cash flow from operations.
Of the past 5 years VAR 4 years were profitable.
In the past 5 years VAR always reported a positive cash flow from operatings.
VAR.OL Yearly Net Income VS EBIT VS OCF VS FCFVAR.OL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B

1.2 Ratios

VAR has a Return On Assets of 2.56%. This is in the lower half of the industry: VAR underperforms 66.67% of its industry peers.
The Return On Equity of VAR (61.32%) is better than 93.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.35%, VAR is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VAR is significantly above the industry average of 14.91%.
The last Return On Invested Capital (13.35%) 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 RankSector 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
VAR.OL Yearly ROA, ROE, ROICVAR.OL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50

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 95.00% of its industry peers.
In the last couple of years the Operating Margin of VAR has grown nicely.
VAR has a Gross Margin of 82.00%. This is amongst the best in the industry. VAR outperforms 86.67% of its industry peers.
VAR's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
VAR.OL Yearly Profit, Operating, Gross MarginsVAR.OL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50

1

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.
VAR has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, VAR has about the same amount of shares outstanding.
Compared to 1 year ago, VAR has a worse debt to assets ratio.
VAR.OL Yearly Shares OutstandingVAR.OL Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B
VAR.OL Yearly Total Debt VS Total AssetsVAR.OL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

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.
VAR's Debt to FCF ratio of 6.47 is in line compared to the rest of the industry. VAR outperforms 55.00% of its industry peers.
VAR has a Debt/Equity ratio of 5.33. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 5.33, VAR is not doing good in the industry: 95.00% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 5.33
Debt/FCF 6.47
Altman-Z N/A
ROIC/WACC1.56
WACC8.53%
VAR.OL Yearly LT Debt VS Equity VS FCFVAR.OL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B 8B

2.3 Liquidity

A Current Ratio of 0.67 indicates that VAR may have some problems paying its short term obligations.
VAR has a Current ratio of 0.67. This is amonst the worse of the industry: VAR underperforms 91.67% of its industry peers.
A Quick Ratio of 0.57 indicates that VAR may have some problems paying its short term obligations.
VAR has a worse Quick ratio (0.57) than 95.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.67
Quick Ratio 0.57
VAR.OL Yearly Current Assets VS Current LiabilitesVAR.OL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

7

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.
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 9.75% in the past year. This is quite good.
VAR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.92% yearly.
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

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.
VAR.OL Yearly Revenue VS EstimatesVAR.OL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B
VAR.OL Yearly EPS VS EstimatesVAR.OL Yearly EPS VS EstimatesYearly EPS VS Estimates 2022 2023 2024 2025 2026 2027 2028 2029 2030 0.1 0.2 0.3 0.4

7

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 13.28, the valuation of VAR can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as VAR.
When comparing the Price/Earnings ratio of VAR to the average of the S&P500 Index (27.50), we can say VAR is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.39, the valuation of VAR can be described as very cheap.
VAR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VAR is cheaper than 76.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.44. VAR is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 13.28
Fwd PE 7.39
VAR.OL Price Earnings VS Forward Price EarningsVAR.OL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, VAR is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
VAR's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 9.61
EV/EBITDA 2.34
VAR.OL Per share dataVAR.OL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 30

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 58.38% in the coming years.
PEG (NY)0.05
PEG (5Y)0.42
EPS Next 2Y101.89%
EPS Next 3Y58.38%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 14.37%, VAR is a good candidate for dividend investing.
VAR's Dividend Yield is rather good when compared to the industry average which is at 58.69. VAR pays more dividend than 93.33% of the companies in the same industry.
VAR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
Industry RankSector Rank
Dividend Yield 14.37%

5.2 History

Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

174.58% of the earnings are spent on dividend by VAR. This is not a sustainable payout ratio.
DP174.58%
EPS Next 2Y101.89%
EPS Next 3Y58.38%
VAR.OL Yearly Income VS Free CF VS DividendVAR.OL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B 2B 3B
VAR.OL Dividend Payout.VAR.OL Dividend Payout, showing the Payout Ratio.VAR.OL Dividend Payout.PayoutRetained Earnings

VAR ENERGI ASA

OSL:VAR (7/18/2025, 4:19:50 PM)

34.26

+0.24 (+0.71%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)07-11 2025-07-11
Earnings (Next)10-21 2025-10-21
Inst Owners16.13%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap85.53B
Analysts77.27
Price Target38.26 (11.68%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 14.37%
Yearly Dividend4.38
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)0.52%
PT rev (3m)-8.58%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)0.95%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.1%
Revenue NQ rev (1m)-3.54%
Revenue NQ rev (3m)-5.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.89%
Valuation
Industry RankSector Rank
PE 13.28
Fwd PE 7.39
P/S 1.12
P/FCF 9.61
P/OCF 2.22
P/B 8.2
P/tB N/A
EV/EBITDA 2.34
EPS(TTM)2.58
EY7.53%
EPS(NY)4.63
Fwd EY13.53%
FCF(TTM)3.57
FCFY10.41%
OCF(TTM)15.41
OCFY44.97%
SpS30.5
BVpS4.18
TBVpS-12.22
PEG (NY)0.05
PEG (5Y)0.42
Profitability
Industry RankSector 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 RankSector 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%