Norsk Hydro (NHYDY) AI Stock Analysis

• Market Cap: $14.52B
• Dividend Yield: 2.89%
• Average Volume (3M): 4.64K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.77
• Revenue Growth: 13.03%
• EPS Growth: 699.85%
• Country: US
• Employees: 32,614
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Aluminum
• EPS (TTM): 0.10
• Shares Outstanding: 1,978,489,100
• 10 Day Avg. Volume: 13,923
• 30 Day Avg. Volume: 4,641
• PEG Ratio: 0.34
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 69.08
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 0.07
• Enterprise Value/Gross Profit: 0.19
• Enterprise Value/Ebitda: 0.47
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: $8.50 ▲(21.95% Upside)

Norsk Hydro's strong financial performance and bullish technical indicators are the primary drivers of its stock score. While valuation is reasonable, challenges in cash flow and market conditions from the earnings call slightly temper the outlook.

Positive Factors

Revenue Growth

The significant revenue growth reflects strong demand for Norsk Hydro's products, indicating a solid market position and potential for continued expansion.

Long-term Power Contract

Securing a long-term power contract ensures stable and competitive energy costs, enhancing operational efficiency and profitability over the long term.

Partnerships in Low-Carbon Aluminum

Strategic partnerships in low-carbon aluminum strengthen Norsk Hydro's position in sustainable markets, aligning with industry trends towards eco-friendly solutions.

Negative Factors

Challenging Market Conditions

Challenging market conditions impacting EBITDA suggest potential volatility in earnings, which could affect financial stability and growth prospects.

Workforce Reductions

Workforce reductions may lead to short-term cost savings but could impact employee morale and operational capacity, affecting long-term performance.

Pressure on Extrusions and Recycling Margins

Margin pressures in key segments highlight competitive challenges and cost management issues, potentially affecting profitability and market competitiveness.

Norsk Hydro Business Overview & Revenue Model

Company Description

Norsk Hydro ASA is a leading global supplier of aluminum and renewable energy, headquartered in Norway. The company operates in several segments including Bauxite & Alumina, Primary Metal, Metal Markets, and Rolled Products, providing a wide range of products from raw materials to finished aluminum products. Norsk Hydro is committed to sustainability and aims to produce aluminum with minimal environmental impact, leveraging its expertise in technology and innovation to meet the demands of various industries such as automotive, construction, and packaging.

How the Company Makes Money

Norsk Hydro generates revenue primarily through the production and sale of aluminum products, which includes bauxite, alumina, and various aluminum extrusions and rolled products. The company's revenue model relies on the global demand for aluminum, with significant sales to sectors that require lightweight and durable materials. Key revenue streams include the sale of primary aluminum, which is heavily influenced by market prices and demand from industries such as automotive and construction. Additionally, Norsk Hydro benefits from long-term contracts with major customers, which provide stability in revenue generation. The company also engages in trading activities to optimize its supply chain and capitalize on market opportunities. Partnerships with other industry players and investments in renewable energy further enhance its operational efficiency and profitability.

Norsk Hydro Financial Statement Overview

Summary

Norsk Hydro demonstrates strong financial health with consistent revenue growth, solid profitability, and a stable balance sheet. The company effectively manages its debt and generates substantial cash flow, although there is potential to enhance free cash flow conversion.

Income Statement

Norsk Hydro's income statement shows a strong revenue growth trajectory with a TTM revenue growth rate of 1.29%. The company maintains solid profitability with a gross profit margin of 26.05% and a net profit margin of 4.47% in TTM. EBIT and EBITDA margins are healthy, indicating efficient operations. However, the gross profit margin has decreased compared to the previous year, suggesting potential cost pressures.

Balance Sheet

The balance sheet reflects a robust financial position with a low debt-to-equity ratio of 0.38 in TTM, indicating conservative leverage. Return on equity is strong at 9.54%, showcasing effective use of equity capital. The equity ratio is stable, suggesting a solid capital structure. Overall, the company maintains a healthy balance sheet with manageable debt levels.

Cash Flow

Cash flow analysis reveals significant improvement in free cash flow growth at 64.86% in TTM, indicating enhanced cash generation capabilities. The operating cash flow to net income ratio of 0.56 suggests efficient cash conversion. However, the free cash flow to net income ratio of 0.45 indicates room for improvement in translating earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	215.81B	203.63B	193.62B	207.93B	149.65B	138.12B
Gross Profit	80.73B	74.29B	70.08B	78.56B	52.97B	53.53B
EBITDA	33.20B	22.19B	18.27B	42.33B	27.50B	15.07B
Net Income	10.99B	5.79B	3.58B	24.15B	12.16B	1.84B
Balance Sheet
Total Assets	205.46B	207.37B	206.46B	198.62B	174.51B	164.41B
Cash, Cash Equivalents and Short-Term Investments	23.98B	16.77B	26.48B	31.70B	26.57B	21.25B
Total Debt	37.00B	11.00M	954.00M	32.77B	28.42B	29.56B
Total Liabilities	96.41B	99.92B	99.28B	90.82B	86.13B	86.96B
Stockholders Equity	101.66B	101.46B	100.58B	102.45B	84.06B	74.28B
Cash Flow
Free Cash Flow	10.03B	1.80B	8.58B	19.79B	4.66B	7.23B
Operating Cash Flow	21.92B	15.36B	22.22B	29.39B	10.68B	13.52B
Investing Cash Flow	-16.66B	-12.92B	-20.76B	-10.56B	-4.68B	-8.32B
Financing Cash Flow	-9.05B	-12.56B	-6.70B	-13.25B	-4.37B	1.07B

Norsk Hydro Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 6.97 is below the 20-day moving average (MA) of 7.17, below the 50-day MA of 7.01, and above the 200-day MA of 6.17, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 67.63 is Neutral, neither overbought nor oversold. The STOCH value of 99.84 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
NHYDY	79 Outperform	$14.52B	14.14	10.48%	2.89%	13.03%	699.85%
AA	76 Outperform	$11.56B	10.14	19.77%	0.87%	20.08%	―
KALU	75 Outperform	$1.72B	19.22	12.41%	2.83%	7.69%	91.86%
CSTM	64 Neutral	$2.50B	23.06	12.22%	―	8.48%	12.10%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
CENX	61 Neutral	$2.83B	40.47	12.22%	―	20.15%	-72.89%
MP	61 Neutral	$10.28B	―	-6.83%	―	26.44%	-95.87%

Norsk Hydro Corporate Events

Norsk Hydro Reports Solid Cash Flow Amid Market Challenges

Norsk Hydro is a leading global aluminium and energy company, known for its commitment to sustainable and innovative solutions in the aluminium industry. The company operates in sectors such as bauxite, alumina, and energy, with a focus on low-carbon and circular solutions.