VAR ENERGI ASA (VAR.OL) Stock Fundamental Analysis
OSL:VAR - Euronext Oslo - NO0011202772 - Common Stock - Currency: NOK
We assign a fundamental rating of 6 out of 10 to VAR. VAR was compared to 59 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 growing strongly while it also seems undervalued. This is an interesting 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.
VAR had positive earnings in 4 of the past 5 years.
Each year in the past 5 years VAR had a positive operating cash flow.
1.2 Ratios
VAR's Return On Assets of 2.56% is on the low side compared to the rest of the industry. VAR is outperformed by 71.19% of its industry peers.
The Return On Equity of VAR (61.32%) is better than 93.22% of its industry peers.
With a decent Return On Invested Capital value of 13.35%, VAR is doing good in the industry, outperforming 79.66% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VAR is significantly above the industry average of 14.75%.
The last Return On Invested Capital (13.35%) 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 | 2.56% | ||
| 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
1.3 Margins
VAR's Profit Margin of 8.40% is in line compared to the rest of the industry. VAR outperforms 49.15% of its industry peers.
VAR's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 50.85%, VAR belongs to the best of the industry, outperforming 93.22% of the companies in the same industry.
VAR's Operating Margin has improved in the last couple of years.
VAR's Gross Margin of 82.00% is amongst the best of the industry. VAR outperforms 88.14% of its industry peers.
In the last couple of years the Gross Margin of VAR has grown nicely.
| Industry Rank | Sector 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%
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.
Compared to 1 year ago, VAR has about the same amount of shares outstanding.
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
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's Debt to FCF ratio of 6.47 is in line compared to the rest of the industry. VAR outperforms 52.54% of its industry peers.
A Debt/Equity ratio of 5.33 is on the high side and indicates that VAR has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 5.33, VAR is doing worse than 94.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.33 | ||
| Debt/FCF | 6.47 | ||
| Altman-Z | N/A |
ROIC/WACC1.6
WACC8.32%
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.
VAR has a worse Current ratio (0.67) than 91.53% of its industry peers.
A Quick Ratio of 0.57 indicates that VAR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.57, VAR is doing worse than 93.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.57 |
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.
The Revenue has grown by 9.75% in the past year. This is quite good.
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)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 25.57% on average per year.
Based on estimates for the next years, VAR will show a small growth in Revenue. The Revenue will grow by 1.44% on average per year.
EPS Next Y294.2%
EPS Next 2Y101.89%
EPS Next 3Y58.38%
EPS Next 5Y25.57%
Revenue Next Year15.44%
Revenue Next 2Y13.37%
Revenue Next 3Y7.76%
Revenue Next 5Y1.44%
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.
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
With a Price/Earnings ratio of 11.76, the valuation of VAR can be described as very reasonable.
VAR's Price/Earnings is on the same level as the industry average.
VAR is valuated cheaply when we compare the Price/Earnings ratio to 26.20, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.56, the valuation of VAR can be described as very cheap.
Based on the Price/Forward Earnings ratio, VAR is valued a bit cheaper than the industry average as 76.27% of the companies are valued more expensively.
VAR is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.76 | ||
| Fwd PE | 6.56 |
4.2 Price Multiples
VAR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. VAR is cheaper than 77.97% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VAR is valued a bit cheaper than 66.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.53 | ||
| EV/EBITDA | 2.19 |
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)0.04
PEG (5Y)0.37
EPS Next 2Y101.89%
EPS Next 3Y58.38%
5. Dividend
5.1 Amount
VAR has a Yearly Dividend Yield of 16.45%, which is a nice return.
VAR's Dividend Yield is rather good when compared to the industry average which is at 60.24. VAR pays more dividend than 93.22% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, VAR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 16.45% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
VAR pays out 174.58% of its income as dividend. This is not a sustainable payout ratio.
DP174.58%
EPS Next 2Y101.89%
EPS Next 3Y58.38%
OSL:VAR (5/28/2025, 7:00:00 PM)
29.88
-0.02 (-0.07%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners17.32%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap74.59B
Analysts78.18
Price Target39.2 (31.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 16.45% |
Yearly Dividend4.41
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)-6.34%
PT rev (3m)-7.63%
EPS NQ rev (1m)0.57%
EPS NQ rev (3m)-20%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.42%
Revenue NQ rev (1m)-2.13%
Revenue NQ rev (3m)-12.91%
Revenue NY rev (1m)-1.68%
Revenue NY rev (3m)-5.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.76 | ||
| Fwd PE | 6.56 | ||
| P/S | 1 | ||
| P/FCF | 8.53 | ||
| P/OCF | 1.97 | ||
| P/B | 7.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.19 |
EPS(TTM)2.54
EY8.5%
EPS(NY)4.55
Fwd EY15.24%
FCF(TTM)3.5
FCFY11.73%
OCF(TTM)15.14
OCFY50.67%
SpS29.97
BVpS4.1
TBVpS-12
PEG (NY)0.04
PEG (5Y)0.37
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC8.32%
ROIC/WACC1.6
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 5Y25.57%
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 5Y1.44%
EBIT growth 1Y1.99%
EBIT growth 3Y7.22%
EBIT growth 5Y43.09%
EBIT Next Year74.53%
EBIT Next 3Y24.63%
EBIT Next 5Y11.49%
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%