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VAR ENERGI ASA (VAR.OL) Stock Fundamental Analysis

OSL:VAR - Euronext Oslo - NO0011202772 - Common Stock - Currency: NOK

34.19  -0.09 (-0.26%)

Fundamental Rating

5

Overall VAR gets a fundamental rating of 5 out of 10. We evaluated VAR against 60 industry peers in the Oil, Gas & Consumable Fuels industry. VAR has an excellent profitability rating, but there are concerns on its financial health. An interesting combination arises when we look at growth and value: VAR is growing strongly while it also seems undervalued.


Dividend Valuation Growth Profitability Health

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8

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.
Of the past 5 years VAR 4 years were profitable.
VAR had a positive operating cash flow in each of the past 5 years.
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

Looking at the Return On Assets, with a value of 2.56%, VAR is doing worse than 66.67% of the companies in the same industry.
VAR has a better Return On Equity (61.32%) than 93.33% of its industry peers.
VAR has a Return On Invested Capital of 13.35%. This is in the better half of the industry: VAR outperforms 80.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VAR is significantly above the industry average of 14.91%.
The 3 year average ROIC (22.49%) for VAR is well above the current ROIC(13.35%). The reason for the recent decline needs to be investigated.
Industry RankSector 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
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 (8.40%) which is in line with its industry peers.
In the last couple of years the Profit Margin of VAR has grown nicely.
VAR has a Operating Margin of 50.85%. This is amongst the best in the industry. VAR outperforms 95.00% of its industry peers.
VAR's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 82.00%, VAR belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
In the last couple of years the Gross Margin of VAR has grown nicely.
Industry RankSector 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%
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

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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.
The number of shares outstanding for VAR remains at a similar level compared to 1 year ago.
The number of shares outstanding for VAR remains at a similar level compared to 5 years ago.
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

The Debt to FCF ratio of VAR is 6.47, which is on the high side as it means it would take VAR, 6.47 years of fcf income to pay off all of its debts.
VAR has a Debt to FCF ratio (6.47) which is in line with its industry peers.
A Debt/Equity ratio of 5.33 is on the high side and indicates that VAR has dependencies on debt financing.
VAR has a worse Debt to Equity ratio (5.33) than 95.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 5.33
Debt/FCF 6.47
Altman-Z N/A
ROIC/WACC1.56
WACC8.53%
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 0.67. This is a bad value and indicates that VAR is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.67, VAR is doing worse than 91.67% of the companies in the same industry.
A Quick Ratio of 0.57 indicates that VAR may have some problems paying its short term obligations.
VAR has a Quick ratio of 0.57. This is amonst the worse of the industry: VAR underperforms 95.00% of its industry peers.
Industry RankSector Rank
Current Ratio 0.67
Quick Ratio 0.57
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

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7

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 19.05% over the past 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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.75%.
The Revenue has been growing by 20.92% on average over the past years. This is a very strong growth!
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

Based on estimates for the next years, VAR will show a very strong growth in Earnings Per Share. The EPS will grow by 27.71% on average per year.
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

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.
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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7

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 13.46, which indicates a correct valuation of VAR.
VAR's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.18, VAR is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.49, 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.
VAR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.34.
Industry RankSector Rank
PE 13.46
Fwd PE 7.49
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

Based on the Enterprise Value to EBITDA ratio, VAR is valued a bit cheaper than 80.00% of the companies in the same industry.
VAR's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 9.74
EV/EBITDA 2.38
VAR.OL Per share dataVAR.OL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 30

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 58.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.05
PEG (5Y)0.42
EPS Next 2Y101.89%
EPS Next 3Y58.38%

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5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 14.37%, VAR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 58.69, VAR pays a better dividend. On top of this VAR pays more dividend than 93.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, VAR pays a better dividend.
Industry RankSector 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%
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

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VAR ENERGI ASA

OSL:VAR (7/16/2025, 2:15:11 PM)

34.19

-0.09 (-0.26%)

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 Cap85.35B
Analysts77.27
Price Target38.26 (11.9%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector Rank
PE 13.46
Fwd PE 7.49
P/S 1.14
P/FCF 9.74
P/OCF 2.25
P/B 8.31
P/tB N/A
EV/EBITDA 2.38
EPS(TTM)2.54
EY7.43%
EPS(NY)4.56
Fwd EY13.35%
FCF(TTM)3.51
FCFY10.27%
OCF(TTM)15.17
OCFY44.37%
SpS30.03
BVpS4.11
TBVpS-12.03
PEG (NY)0.05
PEG (5Y)0.42
Profitability
Industry RankSector 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 RankSector 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%