VAR Fundamental Analysis - VAR ENERGI ASA

Fundamental Rating

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!

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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.

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 Rank	Sector 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

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 Rank	Sector 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.

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 Rank	Sector Rank
Debt/Equity	5.33
Debt/FCF	6.47
Altman-Z	N/A

ROIC/WACC1.56

WACC8.53%

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 Rank	Sector Rank
Current Ratio	0.67
Quick Ratio	0.57

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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.

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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 Rank	Sector Rank
PE	13.28
Fwd PE	7.39

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 Rank	Sector Rank
P/FCF	9.61
EV/EBITDA	2.34

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%

More info and screens

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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 Rank	Sector 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%

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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 Rank	Sector 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 Rank	Sector 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 Rank	Sector 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 Rank	Sector 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%

VAR ENERGI ASA (VAR.OL) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

More info and screens