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Norsk Hydro (NHYDY)
OTHER OTC:NHYDY
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Norsk Hydro
(OTC:NHYDY)
71Outperform
Norsk Hydro (NHYDY) vs. S&P 500 (SPY)
Market Cap
$9.95B
Dividend Yield3.1%
Average Volume (3M)34.09K
Price to Earnings (P/E)19.1
Beta (1Y)0.95
Revenue Growth7.73%
EPS Growth195.48%
CountryUS
Employees32,614
SectorBasic Materials
Sector Strength64
IndustryAluminum
Share Statistics
EPS (TTM)0.10
Shares Outstanding2,009,016,000
10 Day Avg. Volume102,269
30 Day Avg. Volume34,089
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.89
Price to Cash Flow (P/CF)4.10
P/FCF Ratio7.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Norsk Hydro Business Overview & Revenue Model
Company DescriptionNorsk Hydro ASA is a Norwegian aluminum and renewable energy company founded in 1905 and headquartered in Oslo, Norway. The company operates in various sectors, including bauxite and alumina production, primary aluminum production, rolled products, extruded solutions, and energy. Hydro is recognized for its integrated business model, covering the entire value chain from raw material extraction to the manufacturing of finished aluminum products, serving industries such as automotive, construction, and packaging.
How the Company Makes MoneyNorsk Hydro generates revenue through its diversified aluminum operations and energy production. The company's key revenue streams include the sale of bauxite and alumina, which are essential raw materials for aluminum manufacturing. Additionally, Hydro produces primary aluminum, which is sold to various industries for use in products ranging from automobile parts to construction materials. The company also offers rolled and extruded aluminum products, catering to specific customer needs in sectors like packaging and transportation. Norsk Hydro's energy segment contributes significantly to its earnings, as it operates a portfolio of hydropower plants that supply electricity to its operations and external customers. Strategic partnerships and joint ventures, such as those focused on sustainable energy solutions and recycling initiatives, further enhance Hydro's profitability and market position.
Norsk Hydro Financial Statement Overview
Summary
Norsk Hydro demonstrates solid financial health, with consistent revenue growth and improved profitability margins. The balance sheet is robust with low leverage and a high equity ratio, ensuring stability. However, cash flow concerns arise due to a significant decline in free cash flow, warranting attention. Overall, the company is on a positive trajectory but needs to address cash flow sustainability.Income Statement
Norsk Hydro has shown consistent revenue growth with a notable increase from 193.6 billion in 2023 to 203.6 billion in 2024, reflecting a 5.2% growth rate. Gross profit margin has improved slightly to 36.5% in 2024 compared to 36.2% in 2023. However, the absence of EBIT data for 2023 and 2024 is concerning. EBITDA margin remained stable at approximately 10.9%. The net profit margin improved significantly to 2.8% in 2024 from 1.9% in 2023, indicating enhanced profitability.75
Positive
Balance Sheet
The company's balance sheet is strong, with a high equity ratio of 48.9% in 2024, indicating a stable financial structure. The debt-to-equity ratio improved significantly, dropping to a very low level of 0.0001, reflecting reduced leverage. Return on equity decreased slightly to 5.7% in 2024 from 3.6% in 2023, which is still a positive indicator of profitability relative to shareholder's equity.80
Positive
Cash Flow
Free cash flow decreased from 8.6 billion in 2023 to 1.8 billion in 2024, a significant drop indicating potential cash flow issues. The operating cash flow to net income ratio decreased to 2.65, reflecting a strong cash generation relative to net income. However, the free cash flow to net income ratio fell dramatically to 0.31, indicating potential difficulties in maintaining free cash flow levels.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 203.63B | 193.62B | 207.93B | 149.65B | 138.12B | Gross Profit |
| 74.29B | 70.08B | 78.56B | 52.97B | 53.53B | EBIT |
| 0.00 | 0.00 | 33.05B | 19.59B | 1.03B | EBITDA |
| 22.19B | 18.27B | 59.19B | 27.79B | 15.07B | Net Income Common Stockholders |
| 5.79B | 3.58B | 24.15B | 12.16B | 1.84B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 16.77B | 26.48B | 31.70B | 26.57B | 21.25B | Total Assets |
| 207.37B | 206.46B | 198.62B | 174.51B | 164.41B | Total Debt |
| 11.00M | 954.00M | 32.77B | 28.42B | 29.56B | Net Debt |
| -15.04B | 11.47B | 2.97B | 5.49B | 11.92B | Total Liabilities |
| 99.92B | 99.28B | 90.82B | 86.13B | 86.96B | Stockholders Equity |
| 101.46B | 100.58B | 102.45B | 84.06B | 74.28B |
| Cash Flow | Free Cash Flow | |||
| 1.80B | 8.58B | 19.79B | 4.66B | 7.23B | Operating Cash Flow |
| 15.36B | 22.22B | 29.39B | 10.68B | 13.52B | Investing Cash Flow |
| -12.92B | -20.76B | -10.56B | -4.68B | -8.32B | Financing Cash Flow |
| -12.56B | -6.70B | -13.25B | -4.37B | 1.07B |
Norsk Hydro Technical Analysis
Negative
5.23
Price Trends
5.75
Negative
5.78
Negative
5.85
Negative
Market Momentum
-0.12
Negative
43.42
Neutral
56.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NHYDY, the sentiment is Negative. The current price of 5.23 is above the 20-day moving average (MA) of 5.15, below the 50-day MA of 5.75, and below the 200-day MA of 5.85, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 43.42 is Neutral, neither overbought nor oversold. The STOCH value of 56.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NHYDY.
Norsk Hydro Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $9.95B | 19.07 | 5.69% | 3.10% | 7.73% | 195.48% | |
68 Neutral | $1.08B | 24.91 | 6.16% | 4.78% | 1.56% | -22.11% | |
67 Neutral | $10.22B | 9.54 | 10.95% | 3.45% | -10.78% | -45.77% | |
64 Neutral | $1.53B | 5.10 | 64.15% | ― | 1.60% | ― | |
63 Neutral | $6.41B | 88.27 | 17.53% | 1.63% | 22.45% | ― | |
63 Neutral | $1.54B | 34.65 | 5.86% | ― | -6.31% | -65.09% | |
49 Neutral | $1.93B | -1.47 | -21.02% | 3.74% | 0.80% | -29.57% |
* Basic Materials Sector Average
Performance Comparison
NHYDY
Norsk Hydro
5.23
-0.98
-15.78%
AA
Alcoa
24.54
-11.82
-32.51%
BG
Bunge Global
78.48
-19.60
-19.98%
CENX
Century Aluminum
16.80
>-0.01
-0.06%
KALU
Kaiser Aluminum
66.60
-25.48
-27.67%
CSTM
Constellium
10.78
-9.43
-46.66%
Norsk Hydro Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: -3.86%|
Next Earnings Date:Jul 22, 2025
Earnings Call Sentiment Neutral
Hydro demonstrated strong financial performance and notable achievements in safety and strategic investments. However, challenges in the extrusion and recycling segments, coupled with geopolitical uncertainties and increased costs, reflect a mixed outlook.Q1-2025 Updates
Positive Updates
Record Low Injury Rate
Hydro reported a record low number of injuries this quarter, with a continued decline in the TRI rate due to strong efforts across the organization.
Strong Financial Performance
Adjusted EBITDA reached NOK 9.5 billion, with a free cash flow of NOK 1.3 billion and an adjusted RoaCE of 10.7%.
Investment in New Wire Rod Casthouse
Hydro announced an investment in a new wire rod casthouse with a strategic partnership worth around NOK 1 billion with NKT.
Growing Demand for Low-Carbon Aluminum
Hydro continues to see strong opportunities for aluminum and low-carbon aluminum solutions, with significant partnerships in the U.S. and automotive sector.
Negative Updates
Challenges in Extrusion and Recycling Segments
Hydro Extrusions is revising its 2025 outlook due to market uncertainty, and Recycling continues to face tight scrap supply and margin pressure.
Impact of Trade Tariffs and Uncertainty
Geopolitical and trade dynamics are becoming unpredictable, with tariffs affecting market conditions and economic growth prospects.
Decreased Aluminum Sales Volumes
Lower sales volumes in Alunorte due to delayed alumina shipments from periods of heavy rain.
Increased Costs in Aluminum Metal
Higher raw material costs impacted results, with a net raw materials cost increase of roughly NOK 550 million in Aluminum Metal.
Company Guidance
During Hydro's First Quarter 2025 Presentation, the company reported an adjusted EBITDA of NOK 9.5 billion and a free cash flow of approximately NOK 1.3 billion, resulting in an adjusted RoaCE of 10.7%. This performance was largely driven by higher alumina prices, increased all-in aluminum prices, and favorable currency effects, which were partially offset by higher raw material costs, lower extrusion volumes and margins, and increased fixed costs. The TRI rate, a key safety metric, continued its decline, indicating ongoing improvements in safety efforts. Hydro revised its 2025 EBITDA outlook for the Extrusions division down from NOK 4.5-5.5 billion to NOK 3.5-4.5 billion, reflecting market uncertainties and slower-than-expected demand recovery. The company also accelerated its cost improvement program in Recycling with a target to achieve 1/3 of its 2030 objectives by the end of 2025. Despite these challenges, Hydro remains committed to its 2030 strategy, focusing on sustainable growth and investments in greener materials.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.