VAR ENERGI ASA (VAR.OL) Stock Fundamental Analysis
Europe - OSL:VAR - NO0011202772 - Common Stock
32.8 NOK
+0.03 (+0.09%)
VAR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 65 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on VAR.
1. Profitability
1.1 Basic Checks
VAR had positive earnings in the past year.
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
With a Return On Assets value of 2.34%, VAR is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
VAR has a better Return On Equity (63.10%) than 95.38% of its industry peers.
VAR has a better Return On Invested Capital (11.44%) than 81.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VAR is significantly above the industry average of 9.96%.
The 3 year average ROIC (22.49%) for VAR is well above the current ROIC(11.44%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.34% | ||
| ROE | 63.1% | ||
| ROIC | 11.44% |
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 (8.43%) which is comparable to the rest of the industry.
VAR's Profit Margin has improved in the last couple of years.
VAR's Operating Margin of 48.19% is amongst the best of the industry. VAR outperforms 95.38% of its industry peers.
VAR's Operating Margin has improved in the last couple of years.
VAR has a Gross Margin of 81.10%. This is amongst the best in the industry. VAR outperforms 86.15% of its industry peers.
VAR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 48.19% | ||
| PM (TTM) | 8.43% | ||
| GM | 81.1% |
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
VAR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
VAR has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for VAR remains at a similar level compared to 5 years ago.
VAR has a worse debt/assets ratio than last year.
2.2 Solvency
VAR has a debt to FCF ratio of 6.76. This is a slightly negative value and a sign of low solvency as VAR would need 6.76 years to pay back of all of its debts.
With a Debt to FCF ratio value of 6.76, VAR perfoms like the industry average, outperforming 58.46% of the companies in the same industry.
VAR has a Debt/Equity ratio of 6.18. This is a high value indicating a heavy dependency on external financing.
VAR's Debt to Equity ratio of 6.18 is on the low side compared to the rest of the industry. VAR is outperformed by 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.18 | ||
| Debt/FCF | 6.76 | ||
| Altman-Z | N/A |
ROIC/WACC1.36
WACC8.41%
2.3 Liquidity
A Current Ratio of 0.75 indicates that VAR may have some problems paying its short term obligations.
With a Current ratio value of 0.75, VAR is not doing good in the industry: 89.23% of the companies in the same industry are doing better.
A Quick Ratio of 0.64 indicates that VAR may have some problems paying its short term obligations.
VAR has a Quick ratio of 0.64. This is amonst the worse of the industry: VAR underperforms 90.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The earnings per share for VAR have decreased by 0.00% in the last year.
Measured over the past years, VAR shows a very strong growth in Earnings Per Share. The EPS has been growing by 31.78% on average per year.
VAR shows a small growth in Revenue. In the last year, the Revenue has grown by 0.82%.
Measured over the past years, VAR shows a very strong growth in Revenue. The Revenue has been growing by 20.92% on average per year.
EPS 1Y (TTM)0%
EPS 3Y-21.91%
EPS 5Y31.78%
EPS Q2Q%0%
Revenue 1Y (TTM)0.82%
Revenue growth 3Y6.86%
Revenue growth 5Y20.92%
Sales Q2Q%-4.7%
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 28.73% on average per year.
VAR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.37% yearly.
EPS Next Y316.49%
EPS Next 2Y91.8%
EPS Next 3Y55.11%
EPS Next 5Y28.73%
Revenue Next Year13.61%
Revenue Next 2Y12.17%
Revenue Next 3Y6.94%
Revenue Next 5Y2.37%
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.
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
The Price/Earnings ratio is 13.33, which indicates a correct valuation of VAR.
Compared to the rest of the industry, the Price/Earnings ratio of VAR is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.27. VAR is valued rather cheaply when compared to this.
VAR is valuated reasonably with a Price/Forward Earnings ratio of 8.25.
Based on the Price/Forward Earnings ratio, VAR is valued a bit cheaper than the industry average as 75.38% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.77, VAR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.33 | ||
| Fwd PE | 8.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VAR is valued cheaper than 86.15% of the companies in the same industry.
75.38% 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 | 9.07 | ||
| EV/EBITDA | 2.53 |
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.
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 55.11% in the coming years.
PEG (NY)0.04
PEG (5Y)0.42
EPS Next 2Y91.8%
EPS Next 3Y55.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 14.49%, VAR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 54.34, VAR pays a better dividend. On top of this VAR pays more dividend than 96.92% of the companies listed in the same industry.
VAR's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.49% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
180.93% of the earnings are spent on dividend by VAR. This is not a sustainable payout ratio.
DP180.93%
EPS Next 2Y91.8%
EPS Next 3Y55.11%
OSL:VAR (9/16/2025, 4:25:30 PM)
32.8
+0.03 (+0.09%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners16.13%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap81.88B
Analysts78.95
Price Target40.13 (22.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.49% |
Yearly Dividend4.28
Dividend Growth(5Y)N/A
DP180.93%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.57%
Min EPS beat(2)-31.86%
Max EPS beat(2)35.01%
EPS beat(4)1
Avg EPS beat(4)-114.51%
Min EPS beat(4)-446.49%
Max EPS beat(4)35.01%
EPS beat(8)1
Avg EPS beat(8)-69.44%
EPS beat(12)1
Avg EPS beat(12)-63.94%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-5.58%
Min Revenue beat(2)-6.67%
Max Revenue beat(2)-4.49%
Revenue beat(4)0
Avg Revenue beat(4)-5.55%
Min Revenue beat(4)-6.74%
Max Revenue beat(4)-4.3%
Revenue beat(8)0
Avg Revenue beat(8)-4.4%
Revenue beat(12)0
Avg Revenue beat(12)-4.79%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.67%
PT rev (3m)5.43%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.06%
EPS NY rev (1m)5.65%
EPS NY rev (3m)5.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.74%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)-1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.33 | ||
| Fwd PE | 8.25 | ||
| P/S | 1.15 | ||
| P/FCF | 9.07 | ||
| P/OCF | 2.21 | ||
| P/B | 8.57 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.53 |
EPS(TTM)2.46
EY7.5%
EPS(NY)3.97
Fwd EY12.12%
FCF(TTM)3.62
FCFY11.02%
OCF(TTM)14.86
OCFY45.29%
SpS28.62
BVpS3.83
TBVpS-11.75
PEG (NY)0.04
PEG (5Y)0.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.34% | ||
| ROE | 63.1% | ||
| ROCE | 14.86% | ||
| ROIC | 11.44% | ||
| ROICexc | 11.79% | ||
| ROICexgc | 14.26% | ||
| OM | 48.19% | ||
| PM (TTM) | 8.43% | ||
| GM | 81.1% | ||
| FCFM | 12.63% |
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-Score4
Asset Turnover0.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.18 | ||
| Debt/FCF | 6.76 | ||
| Debt/EBITDA | 1.1 | ||
| Cap/Depr | 145.71% | ||
| Cap/Sales | 39.28% | ||
| Interest Coverage | 9.04 | ||
| Cash Conversion | 69.07% | ||
| Profit Quality | 149.77% | ||
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | N/A |
F-Score4
WACC8.41%
ROIC/WACC1.36
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)0%
EPS 3Y-21.91%
EPS 5Y31.78%
EPS Q2Q%0%
EPS Next Y316.49%
EPS Next 2Y91.8%
EPS Next 3Y55.11%
EPS Next 5Y28.73%
Revenue 1Y (TTM)0.82%
Revenue growth 3Y6.86%
Revenue growth 5Y20.92%
Sales Q2Q%-4.7%
Revenue Next Year13.61%
Revenue Next 2Y12.17%
Revenue Next 3Y6.94%
Revenue Next 5Y2.37%
EBIT growth 1Y-9.94%
EBIT growth 3Y7.22%
EBIT growth 5Y43.09%
EBIT Next Year74.53%
EBIT Next 3Y24.63%
EBIT Next 5Y13.68%
FCF growth 1Y19.02%
FCF growth 3Y-37.64%
FCF growth 5Y24.35%
OCF growth 1Y6.82%
OCF growth 3Y-9.38%
OCF growth 5Y17.84%