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
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!
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.
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 Rank | Sector 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
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 Rank | Sector 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%
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.19 | ||
| Debt/FCF | 7.35 | ||
| Altman-Z | N/A |
ROIC/WACC1.27
WACC8.46%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.72 | ||
| Quick Ratio | 0.61 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.85 | ||
| Fwd PE | 10.51 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.71 | ||
| EV/EBITDA | 2.55 |
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. 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 Rank | Sector 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 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%.