VAR ENERGI ASA (VAR.OL) Stock Fundamental Analysis
Europe - OSL:VAR - NO0011202772 - Common Stock
34.16 NOK
+0.21 (+0.62%)
VAR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 62 industry peers in the Oil, Gas & Consumable Fuels industry. While VAR has a great profitability rating, there are quite some 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.
VAR had a positive operating cash flow in the past year.
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
VAR has a worse Return On Assets (2.34%) than 62.90% of its industry peers.
VAR's Return On Equity of 63.10% is amongst the best of 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 80.65% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VAR is significantly above the industry average of 9.92%.
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
VAR's Profit Margin of 8.43% is in line compared to the rest of the industry. VAR outperforms 53.23% of its industry peers.
In the last couple of years the Profit Margin of VAR has grown nicely.
VAR's Operating Margin of 48.19% is amongst the best of the industry. VAR outperforms 96.77% of its industry peers.
In the last couple of years the Operating Margin of VAR has grown nicely.
VAR has a Gross Margin of 81.10%. This is amongst the best in the industry. VAR outperforms 85.48% of its industry peers.
In the last couple of years the Gross Margin of VAR has grown nicely.
| 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.
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.
The debt/assets ratio for VAR is higher compared to a year ago.
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.
Looking at the Debt to FCF ratio, with a value of 6.76, VAR is in line with its industry, outperforming 58.06% 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 95.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.18 | ||
| Debt/FCF | 6.76 | ||
| Altman-Z | N/A |
ROIC/WACC1.36
WACC8.4%
2.3 Liquidity
A Current Ratio of 0.75 indicates that VAR may have some problems paying its short term obligations.
VAR has a Current ratio of 0.75. This is amonst the worse of the industry: VAR underperforms 90.32% of its industry peers.
VAR has a Quick Ratio of 0.75. 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 Quick ratio, with a value of 0.64, VAR is doing worse than 91.94% of the companies in the same industry.
| 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.
Looking at the last year, VAR shows a small growth in Revenue. The Revenue has grown by 0.82% in the last year.
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
The Earnings Per Share is expected to grow by 28.73% on average over the next years. This is a very strong growth
VAR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.37% yearly.
EPS Next Y336.07%
EPS Next 2Y91.64%
EPS Next 3Y53.92%
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
A Price/Earnings ratio of 13.77 indicates a correct valuation of VAR.
VAR's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.86. VAR is valued rather cheaply when compared to this.
VAR is valuated reasonably with a Price/Forward Earnings ratio of 8.51.
VAR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. VAR is cheaper than 67.74% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.32, VAR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.77 | ||
| Fwd PE | 8.51 |
4.2 Price Multiples
VAR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VAR is cheaper than 85.48% of the companies in the same industry.
74.19% 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 | 9.34 | ||
| EV/EBITDA | 2.57 |
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.
VAR's earnings are expected to grow with 53.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.04
PEG (5Y)0.43
EPS Next 2Y91.64%
EPS Next 3Y53.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 13.81%, VAR is a good candidate for dividend investing.
VAR's Dividend Yield is rather good when compared to the industry average which is at 58.46. VAR pays more dividend than 96.77% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, VAR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.81% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
VAR pays out 180.93% of its income as dividend. This is not a sustainable payout ratio.
DP180.93%
EPS Next 2Y91.64%
EPS Next 3Y53.92%
OSL:VAR (10/3/2025, 7:00:00 PM)
34.16
+0.21 (+0.62%)
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 Cap85.28B
Analysts78.95
Price Target40.13 (17.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 13.81% |
Yearly Dividend4.34
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)4.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.06%
EPS NY rev (1m)4.7%
EPS NY rev (3m)10.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.74%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-1.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.77 | ||
| Fwd PE | 8.51 | ||
| P/S | 1.18 | ||
| P/FCF | 9.34 | ||
| P/OCF | 2.27 | ||
| P/B | 8.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.57 |
EPS(TTM)2.48
EY7.26%
EPS(NY)4.01
Fwd EY11.75%
FCF(TTM)3.66
FCFY10.7%
OCF(TTM)15.02
OCFY43.98%
SpS28.94
BVpS3.87
TBVpS-11.89
PEG (NY)0.04
PEG (5Y)0.43
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
WACC8.4%
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 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 Year13.61%
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 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%