VAR ENERGI ASA (VAR.OL) Stock Fundamental Analysis
OSL:VAR - Euronext Oslo - NO0011202772 - Common Stock - Currency: NOK
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. VAR has an excellent profitability rating, but there are concerns on its financial health. VAR has a decent growth rate and is not valued too expensively.
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
Looking at the Return On Assets, with a value of 1.42%, VAR is doing worse than 76.19% of the companies in the same industry.
The Return On Equity of VAR (37.42%) is better than 90.48% of its industry peers.
The Return On Invested Capital of VAR (14.70%) is better than 82.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VAR is significantly above the industry average of 12.53%.
The last Return On Invested Capital (14.70%) for VAR is well below the 3 year average (22.55%), which needs to be investigated, but indicates that VAR had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.42% | ||
| ROE | 37.42% | ||
| ROIC | 14.7% |
ROA(3y)3.19%
ROA(5y)0.97%
ROE(3y)45.05%
ROE(5y)18.2%
ROIC(3y)22.55%
ROIC(5y)N/A
1.3 Margins
VAR's Profit Margin of 4.18% is on the low side compared to the rest of the industry. VAR is outperformed by 65.08% of its industry peers.
VAR's Profit Margin has improved in the last couple of years.
VAR has a better Operating Margin (51.16%) than 90.48% of its industry peers.
In the last couple of years the Operating Margin of VAR has grown nicely.
Looking at the Gross Margin, with a value of 81.17%, VAR belongs to the top of the industry, outperforming 88.89% 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 | 51.16% | ||
| PM (TTM) | 4.18% | ||
| GM | 81.17% |
OM growth 3Y0.52%
OM growth 5Y18.46%
PM growth 3Y-27.07%
PM growth 5Y8.84%
GM growth 3Y-0.01%
GM growth 5Y3.94%
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.
Compared to 1 year ago, VAR has about the same amount of shares outstanding.
VAR has about the same amout of shares outstanding than it did 5 years ago.
VAR has a worse debt/assets ratio than last year.
2.2 Solvency
VAR has a debt to FCF ratio of 11.34. This is a negative value and a sign of low solvency as VAR would need 11.34 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 11.34, VAR is doing worse than 60.32% of the companies in the same industry.
A Debt/Equity ratio of 6.27 is on the high side and indicates that VAR has dependencies on debt financing.
VAR has a Debt to Equity ratio of 6.27. This is amonst the worse of the industry: VAR underperforms 93.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.27 | ||
| Debt/FCF | 11.34 | ||
| Altman-Z | N/A |
ROIC/WACC1.86
WACC7.91%
2.3 Liquidity
A Current Ratio of 0.67 indicates that VAR may have some problems paying its short term obligations.
The Current ratio of VAR (0.67) is worse than 90.48% of its industry peers.
VAR has a Quick Ratio of 0.67. 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 Quick ratio of 0.54 is on the low side compared to the rest of the industry. VAR is outperformed by 92.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
VAR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -47.91%.
The Earnings Per Share has been growing by 31.78% on average over the past years. This is a very strong growth
VAR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.76%.
VAR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.06% yearly.
EPS 1Y (TTM)-47.91%
EPS 3Y-21.91%
EPS 5Y31.78%
EPS Q2Q%-236.31%
Revenue 1Y (TTM)8.76%
Revenue growth 3Y7.06%
Revenue growth 5Y21.06%
Sales Q2Q%-0.91%
3.2 Future
The Earnings Per Share is expected to grow by 4.29% on average over the next years.
Based on estimates for the next years, VAR will show a small growth in Revenue. The Revenue will grow by 0.84% on average per year.
EPS Next Y69.67%
EPS Next 2Y34.72%
EPS Next 3Y19.45%
EPS Next 5Y4.29%
Revenue Next Year21.37%
Revenue Next 2Y14.18%
Revenue Next 3Y8.59%
Revenue Next 5Y0.84%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 21.52, the valuation of VAR can be described as rather expensive.
Based on the Price/Earnings ratio, VAR is valued a bit more expensive than 74.60% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, VAR is valued a bit cheaper.
A Price/Forward Earnings ratio of 6.35 indicates a rather cheap valuation of VAR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VAR indicates a somewhat cheap valuation: VAR is cheaper than 79.37% of the companies listed in the same industry.
VAR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.52 | ||
| Fwd PE | 6.35 |
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 80.95% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VAR is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.09 | ||
| EV/EBITDA | 2.11 |
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 19.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.31
PEG (5Y)0.68
EPS Next 2Y34.72%
EPS Next 3Y19.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 16.06%, VAR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 59.75, VAR pays a better dividend. On top of this VAR pays more dividend than 90.48% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, VAR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 16.06% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
346.70% of the earnings are spent on dividend by VAR. This is not a sustainable payout ratio.
DP346.7%
EPS Next 2Y34.72%
EPS Next 3Y19.45%
OSL:VAR (3/7/2025, 7:00:00 PM)
30.56
+0.87 (+2.93%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners17.32%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap76.29B
Analysts78.1
Price Target42.44 (38.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 16.06% |
Yearly Dividend4.69
Dividend Growth(5Y)N/A
DP346.7%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-6.26%
Min Revenue beat(2)-8.22%
Max Revenue beat(2)-4.3%
Revenue beat(4)0
Avg Revenue beat(4)-4.8%
Min Revenue beat(4)-8.22%
Max Revenue beat(4)-0.93%
Revenue beat(8)0
Avg Revenue beat(8)-4.83%
Revenue beat(12)1
Avg Revenue beat(12)-4.33%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.09%
PT rev (3m)0.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)25%
EPS NY rev (1m)-0.48%
EPS NY rev (3m)-2.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)-2.13%
Revenue NY rev (3m)-2.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.52 | ||
| Fwd PE | 6.35 | ||
| P/S | 0.95 | ||
| P/FCF | 15.09 | ||
| P/OCF | 2.07 | ||
| P/B | 8.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.11 |
EPS(TTM)1.42
EY4.65%
EPS(NY)4.81
Fwd EY15.75%
FCF(TTM)2.02
FCFY6.63%
OCF(TTM)14.79
OCFY48.38%
SpS32.32
BVpS3.61
TBVpS-12.16
PEG (NY)0.31
PEG (5Y)0.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.42% | ||
| ROE | 37.42% | ||
| ROCE | 19.08% | ||
| ROIC | 14.7% | ||
| ROICexc | 14.9% | ||
| ROICexgc | 18.28% | ||
| OM | 51.16% | ||
| PM (TTM) | 4.18% | ||
| GM | 81.17% | ||
| FCFM | 6.26% |
ROA(3y)3.19%
ROA(5y)0.97%
ROE(3y)45.05%
ROE(5y)18.2%
ROIC(3y)22.55%
ROIC(5y)N/A
ROICexc(3y)23.22%
ROICexc(5y)N/A
ROICexgc(3y)27.57%
ROICexgc(5y)N/A
ROCE(3y)29.28%
ROCE(5y)N/A
ROICexcg growth 3Y4.44%
ROICexcg growth 5Y38.68%
ROICexc growth 3Y3.49%
ROICexc growth 5Y41.83%
OM growth 3Y0.52%
OM growth 5Y18.46%
PM growth 3Y-27.07%
PM growth 5Y8.84%
GM growth 3Y-0.01%
GM growth 5Y3.94%
F-Score3
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.27 | ||
| Debt/FCF | 11.34 | ||
| Debt/EBITDA | 0.91 | ||
| Cap/Depr | 153.52% | ||
| Cap/Sales | 39.48% | ||
| Interest Coverage | 11.09 | ||
| Cash Conversion | 59.5% | ||
| Profit Quality | 149.82% | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | N/A |
F-Score3
WACC7.91%
ROIC/WACC1.86
Cap/Depr(3y)175.33%
Cap/Depr(5y)158.77%
Cap/Sales(3y)35.28%
Cap/Sales(5y)43.14%
Profit Quality(3y)197.73%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-47.91%
EPS 3Y-21.91%
EPS 5Y31.78%
EPS Q2Q%-236.31%
EPS Next Y69.67%
EPS Next 2Y34.72%
EPS Next 3Y19.45%
EPS Next 5Y4.29%
Revenue 1Y (TTM)8.76%
Revenue growth 3Y7.06%
Revenue growth 5Y21.06%
Sales Q2Q%-0.91%
Revenue Next Year21.37%
Revenue Next 2Y14.18%
Revenue Next 3Y8.59%
Revenue Next 5Y0.84%
EBIT growth 1Y-5.73%
EBIT growth 3Y7.63%
EBIT growth 5Y43.41%
EBIT Next Year98.78%
EBIT Next 3Y22.95%
EBIT Next 5Y10.32%
FCF growth 1Y-36.81%
FCF growth 3Y-37.64%
FCF growth 5Y24.35%
OCF growth 1Y-0.36%
OCF growth 3Y-9.38%
OCF growth 5Y17.84%