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VAR ENERGI ASA (VAR.OL) Stock Fundamental Analysis

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

35.455  +1.02 (+2.98%)

Fundamental Rating

6

Taking everything into account, VAR scores 6 out of 10 in our fundamental rating. VAR was compared to 61 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. 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 70.49% of the companies in the same industry.
Looking at the Return On Equity, with a value of 61.32%, VAR belongs to the top of the industry, outperforming 93.44% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.35%, VAR belongs to the top of the industry, outperforming 80.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VAR is significantly above the industry average of 14.55%.
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.
Looking at the Operating Margin, with a value of 50.85%, VAR belongs to the top of the industry, outperforming 95.08% of the companies in the same industry.
In the last couple of years the Operating Margin of VAR has grown nicely.
VAR has a better Gross Margin (82.00%) than 86.89% of its industry peers.
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

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so VAR is creating value.
The number of shares outstanding for VAR remains at a similar level compared to 1 year ago.
VAR has about the same amout of shares outstanding than it did 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

VAR has a debt to FCF ratio of 6.47. This is a slightly negative value and a sign of low solvency as VAR would need 6.47 years to pay back of all of its debts.
VAR has a Debt to FCF ratio of 6.47. This is comparable to the rest of the industry: VAR outperforms 50.82% 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.
With a Debt to Equity ratio value of 5.33, VAR is not doing good in the industry: 95.08% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 5.33
Debt/FCF 6.47
Altman-Z N/A
ROIC/WACC1.58
WACC8.43%
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 91.80% of the companies in the same industry.
VAR has a Quick 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 Quick ratio of 0.57. This is amonst the worse of the industry: VAR underperforms 93.44% 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.
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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.75%.
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

The Earnings Per Share is expected to grow by 27.71% 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 1.78% yearly.
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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8

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 14.24, 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.
VAR is valuated rather cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.95, which indicates a rather cheap valuation of VAR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VAR indicates a somewhat cheap valuation: VAR is cheaper than 73.77% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, VAR is valued rather cheaply.
Industry RankSector Rank
PE 14.24
Fwd PE 7.95
VAR.OL Price Earnings VS Forward Price EarningsVAR.OL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

80.33% of the companies in the same industry are more expensive than VAR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, VAR is valued a bit cheaper than the industry average as 65.57% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 10.33
EV/EBITDA 2.42
VAR.OL Per share dataVAR.OL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20

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.
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 58.38% in the coming years.
PEG (NY)0.05
PEG (5Y)0.45
EPS Next 2Y101.89%
EPS Next 3Y58.38%

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5

5. Dividend

5.1 Amount

VAR has a Yearly Dividend Yield of 14.86%, which is a nice return.
Compared to an average industry Dividend Yield of 57.35, VAR pays a better dividend. On top of this VAR pays more dividend than 93.44% 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 2.40.
Industry RankSector Rank
Dividend Yield 14.86%

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 (6/19/2025, 4:19:56 PM)

35.455

+1.02 (+2.98%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)04-23 2025-04-23/bmo
Earnings (Next)07-22 2025-07-22
Inst Owners16.13%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap88.51B
Analysts77.27
Price Target38.07 (7.38%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 14.86%
Yearly Dividend4.3
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)-2.9%
PT rev (3m)-10.3%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.86%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.42%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.89%
Valuation
Industry RankSector Rank
PE 14.24
Fwd PE 7.95
P/S 1.21
P/FCF 10.33
P/OCF 2.39
P/B 8.82
P/tB N/A
EV/EBITDA 2.42
EPS(TTM)2.49
EY7.02%
EPS(NY)4.46
Fwd EY12.58%
FCF(TTM)3.43
FCFY9.68%
OCF(TTM)14.82
OCFY41.81%
SpS29.34
BVpS4.02
TBVpS-11.75
PEG (NY)0.05
PEG (5Y)0.45
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
WACC8.43%
ROIC/WACC1.58
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%