VAR ENERGI ASA (VAR.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:VAR - NO0011202772 - Common Stock
32.54 NOK
+0.76 (+2.39%)
Overall VAR gets a fundamental rating of 5 out of 10. We evaluated VAR against 72 industry peers in the Oil, Gas & Consumable Fuels industry. VAR scores excellent on profitability, but there are concerns on its financial health. VAR may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
VAR had positive earnings in the past year.
VAR had a positive operating cash flow in the past year.
Of the past 5 years VAR 4 years were profitable.
VAR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.34%, VAR is doing worse than 62.50% of the companies in the same industry.
VAR has a better Return On Equity (63.10%) than 98.61% of its industry peers.
With an excellent Return On Invested Capital value of 11.44%, VAR belongs to the best of the industry, outperforming 86.11% 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 8.96%.
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.
VAR's Profit Margin has improved in the last couple of years.
VAR has a better Operating Margin (48.19%) than 95.83% of its industry peers.
VAR's Operating Margin has improved in the last couple of years.
The Gross Margin of VAR (81.10%) is better than 88.89% of its industry peers.
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
VAR has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for VAR remains at a similar level compared to 1 year ago.
Compared to 5 years ago, VAR has about the same amount of shares outstanding.
VAR has a worse debt/assets ratio than last year.
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.
VAR has a Debt to FCF ratio (6.76) which is in line with its industry peers.
A Debt/Equity ratio of 6.18 is on the high side and indicates that VAR has dependencies on debt financing.
With a Debt to Equity ratio value of 6.18, VAR is not doing good in the industry: 94.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.18 | ||
| Debt/FCF | 6.76 | ||
| Altman-Z | N/A |
ROIC/WACC1.35
WACC8.45%
2.3 Liquidity
VAR has a Current 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 Current ratio, with a value of 0.75, VAR is doing worse than 84.72% of the companies in the same industry.
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 84.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.75 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The earnings per share for VAR have decreased by -4.17% in the last 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 8.38%.
The Revenue has been growing by 20.92% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-4.17%
EPS 3Y-21.91%
EPS 5Y31.78%
EPS Q2Q%-28.57%
Revenue 1Y (TTM)8.38%
Revenue growth 3Y6.86%
Revenue growth 5Y20.92%
Sales Q2Q%14.4%
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 28.39% on average per year.
VAR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.56% yearly.
EPS Next Y296.31%
EPS Next 2Y82.35%
EPS Next 3Y49.44%
EPS Next 5Y28.39%
Revenue Next Year11.89%
Revenue Next 2Y10.59%
Revenue Next 3Y6.12%
Revenue Next 5Y2.56%
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
Based on the Price/Earnings ratio of 14.03, the valuation of VAR can be described as correct.
VAR's Price/Earnings ratio is a bit cheaper when compared to the industry. VAR is cheaper than 63.89% of the companies in the same industry.
VAR is valuated rather cheaply when we compare the Price/Earnings ratio to 27.00, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.81, the valuation of VAR can be described as very reasonable.
Based on the Price/Forward Earnings ratio, VAR is valued a bit cheaper than the industry average as 76.39% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.70. VAR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.03 | ||
| Fwd PE | 8.81 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VAR indicates a rather cheap valuation: VAR is cheaper than 88.89% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VAR indicates a rather cheap valuation: VAR is cheaper than 81.94% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.75 | ||
| EV/EBITDA | 2.44 |
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.
A more expensive valuation may be justified as VAR's earnings are expected to grow with 49.44% in the coming years.
PEG (NY)0.05
PEG (5Y)0.44
EPS Next 2Y82.35%
EPS Next 3Y49.44%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 14.82%, VAR is a good candidate for dividend investing.
VAR's Dividend Yield is rather good when compared to the industry average which is at 5.49. VAR pays more dividend than 98.61% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, VAR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.82% |
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 2Y82.35%
EPS Next 3Y49.44%
OSL:VAR (1/9/2026, 12:06:07 PM)
32.54
+0.76 (+2.39%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners16.32%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap81.23B
Revenue(TTM)7.41B
Net Income(TTM)613.50M
Analysts75.45
Price Target39.38 (21.02%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.82% |
Yearly Dividend4.36
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)0.19%
PT rev (3m)-43.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-24.36%
EPS NY rev (1m)1.38%
EPS NY rev (3m)-9.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.05%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.03 | ||
| Fwd PE | 8.81 | ||
| P/S | 1.11 | ||
| P/FCF | 8.75 | ||
| P/OCF | 2.13 | ||
| P/B | 8.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.44 |
EPS(TTM)2.32
EY7.13%
EPS(NY)3.69
Fwd EY11.35%
FCF(TTM)3.72
FCFY11.43%
OCF(TTM)15.28
OCFY46.96%
SpS29.44
BVpS3.93
TBVpS-12.09
PEG (NY)0.05
PEG (5Y)0.44
Graham Number14.33
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)-4.17%
EPS 3Y-21.91%
EPS 5Y31.78%
EPS Q2Q%-28.57%
EPS Next Y296.31%
EPS Next 2Y82.35%
EPS Next 3Y49.44%
EPS Next 5Y28.39%
Revenue 1Y (TTM)8.38%
Revenue growth 3Y6.86%
Revenue growth 5Y20.92%
Sales Q2Q%14.4%
Revenue Next Year11.89%
Revenue Next 2Y10.59%
Revenue Next 3Y6.12%
Revenue Next 5Y2.56%
EBIT growth 1Y-9.94%
EBIT growth 3Y7.22%
EBIT growth 5Y43.09%
EBIT Next Year69.58%
EBIT Next 3Y23.54%
EBIT Next 5Y12.15%
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 fundamental rating for VAR stock?
ChartMill assigns a fundamental rating of 5 / 10 to VAR.OL.
What is the valuation status for VAR stock?
ChartMill assigns a valuation rating of 8 / 10 to VAR ENERGI ASA (VAR.OL). This can be considered as Undervalued.
How profitable is VAR ENERGI ASA (VAR.OL) stock?
VAR ENERGI ASA (VAR.OL) has a profitability rating of 8 / 10.
What is the financial health of VAR ENERGI ASA (VAR.OL) stock?
The financial health rating of VAR ENERGI ASA (VAR.OL) is 1 / 10.
Can you provide the dividend sustainability for VAR stock?
The dividend rating of VAR ENERGI ASA (VAR.OL) is 5 / 10 and the dividend payout ratio is 180.93%.