VAR ENERGI ASA (VAR.OL) Stock Fundamental Analysis
OSL:VAR - NO0011202772 - Common Stock
33.55 NOK
+0.62 (+1.88%)
Overall VAR gets a fundamental rating of 6 out of 10. We evaluated VAR against 63 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 may be a bit undervalued, certainly considering the very reasonable score on growth
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
Looking at the Return On Assets, with a value of 2.34%, VAR is doing worse than 63.49% of the companies in the same industry.
VAR has a better Return On Equity (63.10%) than 95.24% of its industry peers.
The Return On Invested Capital of VAR (11.44%) is better than 80.95% 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 9.83%.
The 3 year average ROIC (22.49%) for VAR is well above the current ROIC(11.44%). The reason for the recent decline needs to be investigated.
| 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 95.24% of its industry peers.
In the last couple of years the Operating Margin of VAR has grown nicely.
With an excellent Gross Margin value of 81.10%, VAR belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
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
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.
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.
The Debt to FCF ratio of VAR (6.76) is better than 60.32% of its industry peers.
VAR has a Debt/Equity ratio of 6.18. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of VAR (6.18) is worse than 95.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.18 | ||
| Debt/FCF | 6.76 | ||
| Altman-Z | N/A |
ROIC/WACC1.36
WACC8.41%
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.
VAR has a Current ratio of 0.75. This is amonst the worse of the industry: VAR underperforms 90.48% 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.
VAR has a Quick ratio of 0.64. This is amonst the worse of the industry: VAR underperforms 92.06% of its industry peers.
| 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%.
The Earnings Per Share has been growing by 31.78% on average over the past years. This is a very strong growth
Looking at the last year, VAR shows a small growth in Revenue. The Revenue has grown by 0.82% in the last year.
VAR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 20.92% yearly.
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 Y316.49%
EPS Next 2Y91.8%
EPS Next 3Y55.11%
EPS Next 5Y28.73%
Revenue Next Year13.65%
Revenue Next 2Y12.05%
Revenue Next 3Y6.66%
Revenue Next 5Y2.37%
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 13.42, VAR is valued correctly.
VAR's Price/Earnings ratio is in line with the industry average.
VAR is valuated cheaply when we compare the Price/Earnings ratio to 27.07, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 8.30, which indicates a very decent valuation of VAR.
Based on the Price/Forward Earnings ratio, VAR is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.
VAR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.42 | ||
| Fwd PE | 8.3 |
4.2 Price Multiples
VAR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. VAR is cheaper than 85.71% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VAR is valued a bit cheaper than 76.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.13 | ||
| EV/EBITDA | 2.51 |
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 55.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.04
PEG (5Y)0.42
EPS Next 2Y91.8%
EPS Next 3Y55.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 14.58%, VAR is a good candidate for dividend investing.
VAR's Dividend Yield is rather good when compared to the industry average which is at 56.55. VAR pays more dividend than 96.83% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.46, VAR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.58% |
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 2Y91.8%
EPS Next 3Y55.11%
OSL:VAR (9/9/2025, 4:19:46 PM)
33.55
+0.62 (+1.88%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners16.13%
Inst Owner ChangeN/A
Ins Owners0.06%
Ins Owner ChangeN/A
Market Cap83.75B
Analysts78.95
Price Target39.74 (18.45%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 14.58% |
Yearly Dividend4.35
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)3.31%
PT rev (3m)4.4%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.06%
EPS NY rev (1m)5.65%
EPS NY rev (3m)5.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.74%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)-1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.42 | ||
| Fwd PE | 8.3 | ||
| P/S | 1.15 | ||
| P/FCF | 9.13 | ||
| P/OCF | 2.22 | ||
| P/B | 8.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.51 |
EPS(TTM)2.5
EY7.45%
EPS(NY)4.04
Fwd EY12.05%
FCF(TTM)3.68
FCFY10.96%
OCF(TTM)15.11
OCFY45.02%
SpS29.1
BVpS3.89
TBVpS-11.95
PEG (NY)0.04
PEG (5Y)0.42
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
WACC8.41%
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 Y316.49%
EPS Next 2Y91.8%
EPS Next 3Y55.11%
EPS Next 5Y28.73%
Revenue 1Y (TTM)0.82%
Revenue growth 3Y6.86%
Revenue growth 5Y20.92%
Sales Q2Q%-4.7%
Revenue Next Year13.65%
Revenue Next 2Y12.05%
Revenue Next 3Y6.66%
Revenue Next 5Y2.37%
EBIT growth 1Y-9.94%
EBIT growth 3Y7.22%
EBIT growth 5Y43.09%
EBIT Next Year74.53%
EBIT Next 3Y24.63%
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%