Education
About Us
Working with TipRanks
Follow Us
Norsk Hydro (NHYDY)
:NHYDY
Top Page
Norsk Hydro
(OTC:NHYDY)
Rating:71Outperform
Price Target:―
Norsk Hydro (NHYDY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.78B
Dividend Yield3.63%
Average Volume (3M)7.27K
Price to Earnings (P/E)13.4
Beta (1Y)0.78
Revenue Growth7.73%
EPS Growth195.48%
CountryUS
Employees32,614
SectorBasic Materials
Sector Strength55
IndustryAluminum
Share Statistics
EPS (TTM)0.17
Shares Outstanding1,978,489,100
10 Day Avg. Volume12,447
30 Day Avg. Volume7,268
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)1.17
Price to Sales (P/S)0.00
P/FCF Ratio18.98
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 Earnings Call Summary
Earnings Call Date:Jul 22, 2025
(Q2-2025)
| % Change Since: -1.97%|
Next Earnings Date:Oct 24, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balanced performance with strong financial results and strategic advances in green initiatives being offset by geopolitical tensions and some challenges in energy and market conditions. The company is proactively managing these challenges with cost-cutting and strategic investments.Q2-2025 Updates
Positive Updates
Strong Financial Performance
Hydro reported strong results with an adjusted EBITDA of NOK 7.8 billion and a free cash flow of NOK 5 billion, resulting in an adjusted ROCE of 12%, well above the target of 10% over the cycle.
Safety Improvements
The company reported a low number of injuries, with both total recordable injuries and high-risk incidents showing a downward trend, contributing to operational stability.
Greener Sales Expansion
Sales of greener products increased by nearly 50% compared to 2024, with a milestone agreement signed with a major auto manufacturer in North America.
Positive Market Outlook for Low Carbon Products
Hydro continues to see strong demand for low carbon and recycled products, reinforcing their strategic direction towards a green aluminum transition by 2030.
Negative Updates
Geopolitical and Market Challenges
The company faces geopolitical risks, including ongoing tensions following Russia's invasion of Ukraine and trade tensions affecting the global economy.
Challenges in Energy Markets
The company terminated a Nordic power purchase agreement due to undelivered volumes, impacting sourcing strategy.
Impairments in Brazilian Energy Assets
Roughly NOK 400 million in impairments were reported in Brazilian energy assets due to grid constraints and regulatory uncertainties.
Economic Uncertainty
The broader risk of a global economic slowdown and the impact of U.S. tariffs pose challenges to demand and price levels.
Company Guidance
In Hydro's Second Quarter 2025 Presentation, the company reported strong financial performance despite a challenging market environment. Key metrics included an adjusted EBITDA of NOK 7.8 billion, a free cash flow of NOK 5 billion, and an adjusted return on capital employed (ROCE) of 12%, surpassing the target of 10%. Hydro also announced a reduction in its 2024 capital expenditure target by NOK 1.5 billion and implemented a hiring freeze for white-collar employees to enhance flexibility and resilience. The company maintained a robust sourcing portfolio in the energy sector, despite challenges in wind and solar markets. Hydro also highlighted progress in its 2030 improvement program, with a notable 50% increase in sales of greener products year-to-date compared to 2024. Furthermore, geopolitical risks and market volatility remain key considerations as Hydro continues to focus on pioneering the green aluminum transition by 2030.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.78
Positive
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.82
Very Positive
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.74
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 |
| EBITDA | 22.19B | 18.27B | 59.19B | 27.79B | 15.07B |
| Net Income | 5.79B | 3.58B | 24.15B | 12.16B | 1.84B |
Balance Sheet | |||||
| Total Assets | 207.37B | 206.46B | 198.62B | 174.51B | 164.41B |
| Cash, Cash Equivalents and Short-Term Investments | 16.77B | 26.48B | 31.70B | 26.57B | 21.25B |
| Total Debt | 11.00M | 954.00M | 32.77B | 28.42B | 29.56B |
| 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
Neutral
5.98
Price Trends
5.76
Positive
5.62
Positive
5.74
Positive
Market Momentum
0.10
Positive
51.29
Neutral
15.71
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NHYDY, the sentiment is Neutral. The current price of 5.98 is below the 20-day moving average (MA) of 6.06, above the 50-day MA of 5.76, and above the 200-day MA of 5.74, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 51.29 is Neutral, neither overbought nor oversold. The STOCH value of 15.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NHYDY.
Norsk Hydro Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $15.60B | 7.80 | 12.59% | 3.51% | -8.87% | ― | |
71 Outperform | $11.78B | 13.44 | 9.27% | 3.63% | 7.73% | 195.48% | |
70 Outperform | $7.35B | 7.28 | 20.01% | 1.33% | 21.32% | ― | |
70 Outperform | $1.91B | 18.05 | 18.03% | ― | 11.42% | -49.21% | |
65 Neutral | $1.19B | 18.97 | 8.89% | 4.17% | 4.62% | 56.04% | |
61 Neutral | $9.61B | 7.85 | -1.25% | 3.14% | 2.72% | -69.15% | |
61 Neutral | $1.84B | 68.75 | 3.02% | ― | 2.52% | -83.35% |
* Basic Materials Sector Average
Performance Comparison
NHYDY
Norsk Hydro
6.00
1.12
22.95%
AA
Alcoa
28.40
0.31
1.10%
BG
Bunge Global
78.00
-14.32
-15.51%
CENX
Century Aluminum
20.47
8.38
69.31%
KALU
Kaiser Aluminum
73.85
7.67
11.59%
CSTM
Constellium
13.22
-2.44
-15.58%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.