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VAR ENERGI ASA (VAR.OL) Stock Fundamental Analysis

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

34.25  +0.23 (+0.68%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to VAR. VAR was compared to 60 industry peers in the Oil, Gas & Consumable Fuels industry. VAR has an excellent profitability rating, but there are concerns on its financial health. VAR has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!


Dividend Valuation Growth Profitability Health

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8

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.
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

The Return On Assets of VAR (2.56%) is worse than 66.67% of its industry peers.
With an excellent Return On Equity value of 61.32%, VAR belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
VAR has a Return On Invested Capital of 13.35%. This is in the better half of the industry: VAR outperforms 80.00% of its industry peers.
VAR had an Average Return On Invested Capital over the past 3 years of 22.49%. This is significantly above the industry average of 14.91%.
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 comparable to the rest of the industry.
In the last couple of years the Profit Margin of VAR has grown nicely.
The Operating Margin of VAR (50.85%) is better than 95.00% of its industry peers.
VAR's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 82.00%, VAR belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
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

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.
The number of shares outstanding for VAR remains at a similar level compared to 5 years ago.
The debt/assets ratio for VAR is higher compared to a year ago.
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 (6.47) which is comparable to the rest of the industry.
VAR has a Debt/Equity ratio of 5.33. This is a high value indicating a heavy dependency on external financing.
VAR has a worse Debt to Equity ratio (5.33) than 95.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 5.33
Debt/FCF 6.47
Altman-Z N/A
ROIC/WACC1.56
WACC8.53%
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

A Current Ratio of 0.67 indicates that VAR may have some problems paying its short term obligations.
VAR has a worse Current ratio (0.67) than 91.67% of its industry peers.
A Quick Ratio of 0.57 indicates that VAR may have some problems paying its short term obligations.
VAR has a worse Quick ratio (0.57) than 95.00% 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.
The Earnings Per Share has been growing by 31.78% on average over the past years. This is a very strong growth
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

The Earnings Per Share is expected to grow by 27.71% on average over the next years. This is a very strong growth
Based on estimates for the next years, VAR will show a small growth in Revenue. The Revenue will grow by 1.78% on average per year.
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

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.
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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7

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 13.28 indicates a correct valuation of VAR.
The rest of the industry has a similar Price/Earnings ratio as VAR.
Compared to an average S&P500 Price/Earnings ratio of 27.48, VAR is valued rather cheaply.
VAR is valuated cheaply with a Price/Forward Earnings ratio of 7.39.
Based on the Price/Forward Earnings ratio, VAR is valued a bit cheaper than the industry average as 76.67% of the companies are valued more expensively.
VAR is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.52, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 13.28
Fwd PE 7.39
VAR.OL Price Earnings VS Forward Price EarningsVAR.OL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, VAR is valued a bit cheaper than 80.00% of the companies in the same industry.
VAR's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 9.6
EV/EBITDA 2.34
VAR.OL Per share dataVAR.OL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20 30

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)0.05
PEG (5Y)0.42
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 14.37%, which is a nice return.
Compared to an average industry Dividend Yield of 58.69, VAR pays a better dividend. On top of this VAR pays more dividend than 93.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, VAR pays a better dividend.
Industry RankSector Rank
Dividend Yield 14.37%

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 (7/18/2025, 1:53:32 PM)

34.25

+0.23 (+0.68%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)07-11 2025-07-11
Earnings (Next)10-21 2025-10-21
Inst Owners16.13%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap85.50B
Analysts77.27
Price Target38.26 (11.71%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 14.37%
Yearly Dividend4.38
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)0.52%
PT rev (3m)-8.58%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)0.95%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.1%
Revenue NQ rev (1m)-3.54%
Revenue NQ rev (3m)-5.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.89%
Valuation
Industry RankSector Rank
PE 13.28
Fwd PE 7.39
P/S 1.12
P/FCF 9.6
P/OCF 2.22
P/B 8.2
P/tB N/A
EV/EBITDA 2.34
EPS(TTM)2.58
EY7.53%
EPS(NY)4.63
Fwd EY13.53%
FCF(TTM)3.57
FCFY10.41%
OCF(TTM)15.41
OCFY44.98%
SpS30.5
BVpS4.18
TBVpS-12.22
PEG (NY)0.05
PEG (5Y)0.42
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
WACC8.53%
ROIC/WACC1.56
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%