NORSK HYDRO ASA (NHY.OL) Stock Fundamental Analysis
OSL:NHY - Euronext Oslo - NO0005052605 - Common Stock - Currency: NOK
Overall NHY gets a fundamental rating of 5 out of 10. We evaluated NHY against 39 industry peers in the Metals & Mining industry. NHY has only an average score on both its financial health and profitability. NHY is valued quite cheap, while showing a decent growth score. This is a good combination! Finally NHY also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
NHY had positive earnings in the past year.
In the past year NHY had a positive cash flow from operations.
In the past 5 years NHY has always been profitable.
NHY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of NHY (2.79%) is better than 64.10% of its industry peers.
Looking at the Return On Equity, with a value of 5.71%, NHY is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
NHY has a Return On Invested Capital of 8.31%. This is in the better half of the industry: NHY outperforms 76.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NHY is above the industry average of 6.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.79% | ||
| ROE | 5.71% | ||
| ROIC | 8.31% |
ROA(3y)5.56%
ROA(5y)4.96%
ROE(3y)10.95%
ROE(5y)9.96%
ROIC(3y)9.64%
ROIC(5y)8.3%
1.3 Margins
NHY has a Profit Margin (2.84%) which is in line with its industry peers.
In the last couple of years the Profit Margin of NHY has declined.
NHY's Operating Margin of 8.37% is fine compared to the rest of the industry. NHY outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of NHY has grown nicely.
The Gross Margin of NHY (36.48%) is better than 66.67% of its industry peers.
NHY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.37% | ||
| PM (TTM) | 2.84% | ||
| GM | 36.48% |
OM growth 3Y-9.93%
OM growth 5Y63.9%
PM growth 3Y-29.53%
PM growth 5YN/A
GM growth 3Y-3.53%
GM growth 5Y0.88%
2. Health
2.1 Basic Checks
NHY has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, NHY has less shares outstanding
NHY has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, NHY has an improved debt to assets ratio.
2.2 Solvency
NHY has an Altman-Z score of 2.44. This is not the best score and indicates that NHY is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.44, NHY is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
NHY has a debt to FCF ratio of 21.06. This is a negative value and a sign of low solvency as NHY would need 21.06 years to pay back of all of its debts.
NHY's Debt to FCF ratio of 21.06 is in line compared to the rest of the industry. NHY outperforms 46.15% of its industry peers.
NHY has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of NHY (0.23) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 21.06 | ||
| Altman-Z | 2.44 |
ROIC/WACC0.86
WACC9.61%
2.3 Liquidity
NHY has a Current Ratio of 1.53. This is a normal value and indicates that NHY is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of NHY (1.53) is worse than 61.54% of its industry peers.
NHY has a Quick Ratio of 1.53. This is a bad value and indicates that NHY is not financially healthy enough and could expect problems in meeting its short term obligations.
NHY has a Quick ratio of 0.96. This is comparable to the rest of the industry: NHY outperforms 51.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.13% over the past year.
Measured over the past years, NHY shows a very strong growth in Earnings Per Share. The EPS has been growing by 53.39% on average per year.
NHY shows a small growth in Revenue. In the last year, the Revenue has grown by 5.17%.
NHY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.34% yearly.
EPS 1Y (TTM)6.13%
EPS 3Y-9.89%
EPS 5Y53.39%
EPS Q2Q%122%
Revenue 1Y (TTM)5.17%
Revenue growth 3Y10.81%
Revenue growth 5Y6.34%
Sales Q2Q%17.76%
3.2 Future
The Earnings Per Share is expected to grow by 26.59% on average over the next years. This is a very strong growth
NHY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.53% yearly.
EPS Next Y40.23%
EPS Next 2Y24.78%
EPS Next 3Y18.91%
EPS Next 5Y26.59%
Revenue Next Year8.99%
Revenue Next 2Y5.27%
Revenue Next 3Y3.79%
Revenue Next 5Y1.53%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
The Price/Earnings ratio is 12.56, which indicates a correct valuation of NHY.
71.79% of the companies in the same industry are more expensive than NHY, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of NHY to the average of the S&P500 Index (28.79), we can say NHY is valued rather cheaply.
NHY is valuated reasonably with a Price/Forward Earnings ratio of 8.95.
82.05% of the companies in the same industry are more expensive than NHY, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of NHY to the average of the S&P500 Index (21.38), we can say NHY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.56 | ||
| Fwd PE | 8.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NHY is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as NHY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 68.79 | ||
| EV/EBITDA | 4.54 |
4.3 Compensation for Growth
NHY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NHY has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as NHY's earnings are expected to grow with 18.91% in the coming years.
PEG (NY)0.31
PEG (5Y)0.24
EPS Next 2Y24.78%
EPS Next 3Y18.91%
5. Dividend
5.1 Amount
NHY has a Yearly Dividend Yield of 4.26%, which is a nice return.
NHY's Dividend Yield is rather good when compared to the industry average which is at 3.76. NHY pays more dividend than 82.05% of the companies in the same industry.
NHY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
5.2 History
On average, the dividend of NHY grows each year by 14.41%, which is quite nice.
Dividend Growth(5Y)14.41%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
NHY pays out 86.60% of its income as dividend. This is not a sustainable payout ratio.
NHY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP86.6%
EPS Next 2Y24.78%
EPS Next 3Y18.91%
OSL:NHY (4/25/2025, 7:00:00 PM)
56.5
+1.02 (+1.84%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners45%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap113.51B
Analysts72.17
Price Target83.1 (47.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
Yearly Dividend2.51
Dividend Growth(5Y)14.41%
DP86.6%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-21.58%
Min EPS beat(2)-38.73%
Max EPS beat(2)-4.44%
EPS beat(4)0
Avg EPS beat(4)-20.52%
Min EPS beat(4)-38.73%
Max EPS beat(4)-4.44%
EPS beat(8)2
Avg EPS beat(8)-18.57%
EPS beat(12)5
Avg EPS beat(12)-7.84%
EPS beat(16)8
Avg EPS beat(16)-4.9%
Revenue beat(2)1
Avg Revenue beat(2)1.97%
Min Revenue beat(2)-1.4%
Max Revenue beat(2)5.34%
Revenue beat(4)1
Avg Revenue beat(4)-0.22%
Min Revenue beat(4)-4.17%
Max Revenue beat(4)5.34%
Revenue beat(8)4
Avg Revenue beat(8)1.64%
Revenue beat(12)6
Avg Revenue beat(12)2.52%
Revenue beat(16)7
Avg Revenue beat(16)1.75%
PT rev (1m)1.83%
PT rev (3m)0.65%
EPS NQ rev (1m)-6.5%
EPS NQ rev (3m)-9.99%
EPS NY rev (1m)-16.36%
EPS NY rev (3m)-15.16%
Revenue NQ rev (1m)-1.82%
Revenue NQ rev (3m)-0.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.56 | ||
| Fwd PE | 8.95 | ||
| P/S | 0.56 | ||
| P/FCF | 68.79 | ||
| P/OCF | 7.47 | ||
| P/B | 1.12 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 4.54 |
EPS(TTM)4.5
EY7.96%
EPS(NY)6.31
Fwd EY11.17%
FCF(TTM)0.82
FCFY1.45%
OCF(TTM)7.57
OCFY13.4%
SpS101.36
BVpS50.5
TBVpS46.3
PEG (NY)0.31
PEG (5Y)0.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.79% | ||
| ROE | 5.71% | ||
| ROCE | 10.79% | ||
| ROIC | 8.31% | ||
| ROICexc | 9.44% | ||
| ROICexgc | 10.05% | ||
| OM | 8.37% | ||
| PM (TTM) | 2.84% | ||
| GM | 36.48% | ||
| FCFM | 0.81% |
ROA(3y)5.56%
ROA(5y)4.96%
ROE(3y)10.95%
ROE(5y)9.96%
ROIC(3y)9.64%
ROIC(5y)8.3%
ROICexc(3y)11.87%
ROICexc(5y)10.38%
ROICexgc(3y)12.76%
ROICexgc(5y)11.22%
ROCE(3y)12.54%
ROCE(5y)10.82%
ROICexcg growth 3Y-10.73%
ROICexcg growth 5Y69.35%
ROICexc growth 3Y-9.94%
ROICexc growth 5Y70.51%
OM growth 3Y-9.93%
OM growth 5Y63.9%
PM growth 3Y-29.53%
PM growth 5YN/A
GM growth 3Y-3.53%
GM growth 5Y0.88%
F-Score8
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 21.06 | ||
| Debt/EBITDA | 0.85 | ||
| Cap/Depr | 133.28% | ||
| Cap/Sales | 6.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 55.88% | ||
| Profit Quality | 28.49% | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | 2.44 |
F-Score8
WACC9.61%
ROIC/WACC0.86
Cap/Depr(3y)113.19%
Cap/Depr(5y)94.53%
Cap/Sales(3y)6.11%
Cap/Sales(5y)5.44%
Profit Quality(3y)114.82%
Profit Quality(5y)160.97%
High Growth Momentum
Growth
EPS 1Y (TTM)6.13%
EPS 3Y-9.89%
EPS 5Y53.39%
EPS Q2Q%122%
EPS Next Y40.23%
EPS Next 2Y24.78%
EPS Next 3Y18.91%
EPS Next 5Y26.59%
Revenue 1Y (TTM)5.17%
Revenue growth 3Y10.81%
Revenue growth 5Y6.34%
Sales Q2Q%17.76%
Revenue Next Year8.99%
Revenue Next 2Y5.27%
Revenue Next 3Y3.79%
Revenue Next 5Y1.53%
EBIT growth 1Y26.04%
EBIT growth 3Y-0.19%
EBIT growth 5Y74.29%
EBIT Next Year102.93%
EBIT Next 3Y29.78%
EBIT Next 5YN/A
FCF growth 1Y-80.34%
FCF growth 3Y-41.66%
FCF growth 5Y-15.47%
OCF growth 1Y-30.99%
OCF growth 3Y2%
OCF growth 5Y3.91%