VAR ENERGI ASA (VAR.OL) Stock Fundamental Analysis

Europe • Euronext Oslo • OSL:VAR • NO0011202772

34.87 NOK
+0.01 (+0.03%)
Last: Jan 30, 2026, 07:00 PM
Fundamental Rating

5

Taking everything into account, VAR scores 5 out of 10 in our fundamental rating. VAR was compared to 72 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!


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.
  • VAR had positive earnings in 4 of the past 5 years.
  • 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's Return On Assets of 2.19% is on the low side compared to the rest of the industry. VAR is outperformed by 66.67% of its industry peers.
  • The Return On Equity of VAR (70.22%) is better than 98.61% of its industry peers.
  • VAR's Return On Invested Capital of 10.78% is amongst the best of the industry. VAR outperforms 86.11% 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 8.83%.
  • The 3 year average ROIC (22.49%) for VAR is well above the current ROIC(10.78%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 2.19%
ROE 70.22%
ROIC 10.78%
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 (7.75%) which is comparable to the rest of the industry.
  • VAR's Profit Margin has improved in the last couple of years.
  • The Operating Margin of VAR (43.98%) is better than 95.83% of its industry peers.
  • VAR's Operating Margin has improved in the last couple of years.
  • With an excellent Gross Margin value of 81.88%, VAR belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
  • VAR's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 43.98%
PM (TTM) 7.75%
GM 81.88%
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

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
  • 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 7.35. This is a slightly negative value and a sign of low solvency as VAR would need 7.35 years to pay back of all of its debts.
  • VAR has a Debt to FCF ratio of 7.35. This is comparable to the rest of the industry: VAR outperforms 50.00% of its industry peers.
  • A Debt/Equity ratio of 7.19 is on the high side and indicates that VAR has dependencies on debt financing.
  • The Debt to Equity ratio of VAR (7.19) is worse than 95.83% of its industry peers.
Industry RankSector Rank
Debt/Equity 7.19
Debt/FCF 7.35
Altman-Z N/A
ROIC/WACC1.27
WACC8.46%
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

  • VAR has a Current Ratio of 0.72. 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's Current ratio of 0.72 is on the low side compared to the rest of the industry. VAR is outperformed by 86.11% of its industry peers.
  • VAR has a Quick Ratio of 0.72. This is a bad value and indicates that VAR is not financially healthy enough and could expect problems in meeting its short term obligations.
  • The Quick ratio of VAR (0.61) is worse than 84.72% of its industry peers.
Industry RankSector Rank
Current Ratio 0.72
Quick Ratio 0.61
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

6

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 been growing slightly by 1.05% in the past 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)1.05%
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.
  • 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 Y288.12%
EPS Next 2Y77.66%
EPS Next 3Y47.32%
EPS Next 5Y28.39%
Revenue Next Year11.89%
Revenue Next 2Y10.59%
Revenue Next 3Y6.12%
Revenue Next 5Y2.56%

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.
  • 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

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4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 15.85 indicates a correct valuation of VAR.
  • VAR's Price/Earnings ratio is a bit cheaper when compared to the industry. VAR is cheaper than 62.50% of the companies in the same industry.
  • VAR is valuated rather cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 10.51 indicates a reasonable valuation of VAR.
  • VAR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VAR is cheaper than 77.78% of the companies in the same industry.
  • VAR is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 15.85
Fwd PE 10.51
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

  • VAR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VAR is cheaper than 88.89% of the companies in the same industry.
  • 76.39% of the companies in the same industry are more expensive than VAR, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 10.71
EV/EBITDA 2.55
VAR.OL Per share dataVAR.OL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20

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 47.32% in the coming years.
PEG (NY)0.06
PEG (5Y)0.5
EPS Next 2Y77.66%
EPS Next 3Y47.32%

5

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 14.02%, VAR is a good candidate for dividend investing.
  • VAR's Dividend Yield is rather good when compared to the industry average which is at 5.02. VAR pays more dividend than 98.61% of the companies in the same industry.
  • VAR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
Industry RankSector Rank
Dividend Yield 14.02%

5.2 History

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

5.3 Sustainability

  • 194.92% of the earnings are spent on dividend by VAR. This is not a sustainable payout ratio.
DP194.92%
EPS Next 2Y77.66%
EPS Next 3Y47.32%
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 / VAR.OL FAQ

What is the fundamental rating for VAR stock?

ChartMill assigns a fundamental rating of 5 / 10 to VAR.OL.


What is the valuation status for VAR stock?

ChartMill assigns a valuation rating of 8 / 10 to VAR ENERGI ASA (VAR.OL). This can be considered as Undervalued.


How profitable is VAR ENERGI ASA (VAR.OL) stock?

VAR ENERGI ASA (VAR.OL) has a profitability rating of 8 / 10.


What is the financial health of VAR ENERGI ASA (VAR.OL) stock?

The financial health rating of VAR ENERGI ASA (VAR.OL) is 1 / 10.


Can you provide the dividend sustainability for VAR stock?

The dividend rating of VAR ENERGI ASA (VAR.OL) is 5 / 10 and the dividend payout ratio is 194.92%.