VAR ENERGI ASA (VAR.OL) Stock Fundamental Analysis
Europe - OSL:VAR - NO0011202772 - Common Stock
33.58 NOK
-0.35 (-1.03%)
VAR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 61 industry peers in the Oil, Gas & Consumable Fuels industry. VAR scores excellent on profitability, but 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.
Of the past 5 years VAR 4 years were profitable.
Each year in the past 5 years VAR had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 2.34%, VAR is not doing good in the industry: 64.52% of the companies in the same industry are doing better.
VAR has a Return On Equity of 63.10%. This is amongst the best in the industry. VAR outperforms 98.39% of its industry peers.
VAR's Return On Invested Capital of 11.44% is amongst the best of the industry. VAR outperforms 82.26% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VAR is significantly above the industry average of 9.79%.
The last Return On Invested Capital (11.44%) 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 | 2.34% | ||
| 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
The Profit Margin of VAR (8.43%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of VAR has grown nicely.
Looking at the Operating Margin, with a value of 48.19%, VAR belongs to the top of the industry, outperforming 95.16% of the companies in the same industry.
In the last couple of years the Operating Margin of VAR has grown nicely.
With an excellent Gross Margin value of 81.10%, VAR belongs to the best of the industry, outperforming 87.10% of the companies in the same industry.
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
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.
VAR has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for VAR is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of VAR is 6.76, which is on the high side as it means it would take VAR, 6.76 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VAR (6.76) is comparable to the rest of the industry.
VAR has a Debt/Equity ratio of 6.18. This is a high value indicating a heavy dependency on external financing.
VAR has a Debt to Equity ratio of 6.18. This is amonst the worse of the industry: VAR underperforms 95.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.18 | ||
| Debt/FCF | 6.76 | ||
| Altman-Z | N/A |
ROIC/WACC1.35
WACC8.45%
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: 87.10% 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.
With a Quick ratio value of 0.64, VAR is not doing good in the industry: 88.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
VAR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by 0.00%.
VAR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.78% yearly.
VAR shows a small growth in Revenue. In the last year, the Revenue has grown by 0.82%.
The Revenue has been growing by 20.92% on average over the past years. This is a very strong growth!
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.
Based on estimates for the next years, VAR will show a small growth in Revenue. The Revenue will grow by 2.37% on average per year.
EPS Next Y336.07%
EPS Next 2Y91.64%
EPS Next 3Y53.92%
EPS Next 5Y28.73%
Revenue Next Year13.17%
Revenue Next 2Y11.46%
Revenue Next 3Y6.46%
Revenue Next 5Y2.37%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.43, VAR is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of VAR indicates a somewhat cheap valuation: VAR is cheaper than 62.90% of the companies listed in the same industry.
VAR is valuated cheaply when we compare the Price/Earnings ratio to 26.89, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.31, the valuation of VAR can be described as reasonable.
Based on the Price/Forward Earnings ratio, VAR is valued a bit cheaper than 77.42% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VAR to the average of the S&P500 Index (22.99), we can say VAR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.43 | ||
| Fwd PE | 8.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VAR is valued cheaply inside the industry as 85.48% of the companies are valued more expensively.
VAR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VAR is cheaper than 74.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.12 | ||
| EV/EBITDA | 2.54 |
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 53.92% in the coming years.
PEG (NY)0.04
PEG (5Y)0.42
EPS Next 2Y91.64%
EPS Next 3Y53.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 14.41%, VAR is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 60.17, VAR pays a better dividend. On top of this VAR pays more dividend than 96.77% 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 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.41% |
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 2Y91.64%
EPS Next 3Y53.92%
OSL:VAR (10/24/2025, 7:00:00 PM)
33.58
-0.35 (-1.03%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners15.63%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap83.83B
Revenue(TTM)7.27B
Net Income(TTM)613.50M
Analysts74.29
Price Target69.67 (107.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.41% |
Yearly Dividend4.33
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)73.61%
PT rev (3m)81.12%
EPS NQ rev (1m)-10.65%
EPS NQ rev (3m)-14.97%
EPS NY rev (1m)0%
EPS NY rev (3m)10.62%
Revenue NQ rev (1m)-4.53%
Revenue NQ rev (3m)-4.65%
Revenue NY rev (1m)-0.39%
Revenue NY rev (3m)-1.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.43 | ||
| Fwd PE | 8.31 | ||
| P/S | 1.15 | ||
| P/FCF | 9.12 | ||
| P/OCF | 2.22 | ||
| P/B | 8.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.54 |
EPS(TTM)2.5
EY7.44%
EPS(NY)4.04
Fwd EY12.04%
FCF(TTM)3.68
FCFY10.97%
OCF(TTM)15.13
OCFY45.07%
SpS29.16
BVpS3.9
TBVpS-11.97
PEG (NY)0.04
PEG (5Y)0.42
Graham Number14.81
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
ROICexgc growth 3Y4.04%
ROICexgc 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
WACC8.45%
ROIC/WACC1.35
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 Y336.07%
EPS Next 2Y91.64%
EPS Next 3Y53.92%
EPS Next 5Y28.73%
Revenue 1Y (TTM)0.82%
Revenue growth 3Y6.86%
Revenue growth 5Y20.92%
Sales Q2Q%-4.7%
Revenue Next Year13.17%
Revenue Next 2Y11.46%
Revenue Next 3Y6.46%
Revenue Next 5Y2.37%
EBIT growth 1Y-9.94%
EBIT growth 3Y7.22%
EBIT growth 5Y43.09%
EBIT Next Year73.34%
EBIT Next 3Y24.72%
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%
VAR ENERGI ASA / VAR.OL FAQ
What is the ChartMill fundamental rating of VAR ENERGI ASA (VAR.OL) stock?
ChartMill assigns a fundamental rating of 5 / 10 to VAR.OL.
What is the valuation status of VAR ENERGI ASA (VAR.OL) stock?
ChartMill assigns a valuation rating of 8 / 10 to VAR ENERGI ASA (VAR.OL). This can be considered as Undervalued.
Can you provide the profitability details for VAR ENERGI ASA?
VAR ENERGI ASA (VAR.OL) has a profitability rating of 8 / 10.
Can you provide the financial health for VAR stock?
The financial health rating of VAR ENERGI ASA (VAR.OL) is 1 / 10.
Can you provide the expected EPS growth for VAR stock?
The Earnings per Share (EPS) of VAR ENERGI ASA (VAR.OL) is expected to grow by 336.07% in the next year.