Norsk Hydro (NHYDY) AI Stock Analysis

• Market Cap: $11.68B
• Dividend Yield: 3.67%
• Average Volume (3M): 3.12K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.80
• Revenue Growth: 7.73%
• EPS Growth: 195.48%
• Country: US
• Employees: 32,614
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Aluminum
• EPS (TTM): 0.16
• Shares Outstanding: 1,978,489,100
• 10 Day Avg. Volume: 9,356
• 30 Day Avg. Volume: 3,118
• PEG Ratio: 0.06
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.63
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: ―

Norsk Hydro demonstrates a strong financial foundation with solid revenue and profitability margins and a robust balance sheet. While the technical indicators suggest caution due to bearish momentum, the company's valuation remains fair, supported by a reasonable P/E ratio and attractive dividend yield. The recent earnings call highlighted strategic progress but also underscored challenges in certain segments and increased costs. Overall, the stock is well-positioned for long-term growth, particularly with its focus on sustainable materials, albeit with some near-term challenges.

Norsk Hydro Business Overview & Revenue Model

Company Description

Norsk Hydro ASA engages in the power production, bauxite extraction, alumina refining, aluminium smelting, remelting, and recycling activities; and provision of extruded solutions worldwide. It operates through Bauxite & Alumina, Aluminium Metal, Metal Markets, Extrusions, and Energy segments. The Bauxite & Alumina segment engages in bauxite mining activities, production of alumina, and related commercial activities, primarily the sale of alumina. The Aluminium Metal segment is involved in the primary aluminum production casting activities. This segment principally offers extrusion ingots, foundry alloys, and sheet and standard ingots. The Metal Markets segment sells products from the company's primary metal plants; operates recyclers; and trades in physical and financial metals. The Extrusions segment offers extrusion profiles, building systems, and precision tubing products for construction, automotive and heating, and ventilation and air conditioning sectors, as well as operates recycling facilities. The Energy segment engages in the trading and wholesale business in Brazil; energy sourcing operations; and operation of power stations in Norway, as well as renewable energy production, such as wind and solar, battery, and hydrogen. Norsk Hydro ASA was founded in 1905 and is headquartered in Oslo, Norway.

How the Company Makes Money

Norsk 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 presents a strong financial position with consistent revenue growth and stable profitability margins. The company's balance sheet is solid, with strong equity and manageable debt levels, enhancing its resilience. Cash flows are generally strong, though some volatility in free cash flow suggests areas for improvement in cash management. Overall, Norsk Hydro is well-positioned in the aluminum industry with a robust financial foundation.

Income Statement

Norsk Hydro has shown consistent revenue growth, with a notable increase from 2024 to TTM (Trailing-Twelve-Months). The gross profit margin has been relatively stable, indicating efficient production processes. However, the net profit margin is lower in TTM compared to 2024, suggesting rising costs or other financial pressures. EBIT and EBITDA margins remain strong, reflecting good operating performance.

Balance Sheet

The balance sheet is robust with a strong equity base as seen in the high equity ratio, which enhances financial stability. Debt levels have fluctuated but are manageable, as indicated by a favorable debt-to-equity ratio. Return on equity is solid, although slightly less than previous years, suggesting efficient use of equity capital.

Cash Flow

Operating cash flow is strong and supportive of net income, but free cash flow has seen some volatility. The free cash flow to net income ratio is healthy, ensuring the company can meet its obligations and invest in growth. However, free cash flow growth has been inconsistent, indicating potential challenges in capital management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	212.61B	203.63B	193.62B	207.93B	149.65B	138.12B
Gross Profit	71.98B	74.29B	70.08B	78.56B	52.97B	53.53B
EBITDA	37.23B	22.19B	18.27B	59.19B	27.79B	15.07B
Net Income	9.68B	5.79B	3.58B	24.15B	12.16B	1.84B
Balance Sheet
Total Assets	208.05B	207.37B	206.46B	198.62B	174.51B	164.41B
Cash, Cash Equivalents and Short-Term Investments	23.18B	16.77B	26.48B	31.70B	26.57B	21.25B
Total Debt	37.17B	11.00M	954.00M	32.77B	28.42B	29.56B
Total Liabilities	98.83B	99.92B	99.28B	90.82B	86.13B	86.96B
Stockholders Equity	102.41B	101.46B	100.58B	102.45B	84.06B	74.28B
Cash Flow
Free Cash Flow	6.24B	1.80B	8.58B	19.79B	4.66B	7.23B
Operating Cash Flow	19.42B	15.36B	22.22B	29.39B	10.68B	13.52B
Investing Cash Flow	-10.00B	-12.92B	-20.76B	-10.56B	-4.68B	-8.32B
Financing Cash Flow	-9.03B	-12.56B	-6.70B	-13.25B	-4.37B	1.07B

Norsk Hydro Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NHYDY, the sentiment is Positive. The current price of 6.07 is above the 20-day moving average (MA) of 5.70, above the 50-day MA of 5.53, and above the 200-day MA of 5.74, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 72.28 is Negative, neither overbought nor oversold. The STOCH value of 99.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NHYDY.

Norsk Hydro Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AA	73 Outperform	$7.90B	9.03	17.53%	1.31%	21.56%	―
NHYDY	71 Outperform	$11.68B	13.33	9.09%	3.67%	7.73%	195.48%
BG	69 Neutral	$10.19B	9.61	10.36%	3.69%	-10.90%	-36.54%
CSTM	68 Neutral	$2.07B	31.68	7.93%	―	-2.29%	-48.13%
CENX	67 Neutral	$1.73B	16.29	18.03%	―	11.42%	-49.21%
KALU	64 Neutral	$1.39B	32.25	6.16%	3.57%	1.56%	-22.11%
Sector *	44 Neutral	C$964.86M	-6.72	-13.73%	2.52%	17.53%	-32.55%