Norsk Hydro (NHYDY) AI Stock Analysis

• Market Cap: $13.07B
• Dividend Yield: 3.25%
• Average Volume (3M): 7.59K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.74
• Revenue Growth: 13.94%
• EPS Growth: 3922.52%
• Country: US
• Employees: 32,614
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Aluminum
• EPS (TTM): 0.17
• Shares Outstanding: 1,978,489,100
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 7,586
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 0.06
• Enterprise Value/Gross Profit: 0.17
• Enterprise Value/Ebitda: 0.42
• 1Y Price Target: $7.00
• Price Target Upside: 4.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: $7.00 ▲(4.32% Upside)

Norsk Hydro's overall stock score is driven by strong financial performance and positive earnings call highlights, including robust EBITDA and progress in sustainability. Technical analysis supports a bullish outlook, while valuation metrics suggest the stock is fairly valued with a decent dividend yield. The company's resilience amid geopolitical challenges further strengthens its position.

Positive Factors

Sustainability Initiatives

Norsk Hydro's focus on greener products aligns with global sustainability trends, potentially enhancing its market position and appeal to eco-conscious customers.

Financial Health

Strong EBITDA and cash flow indicate robust financial health, providing Norsk Hydro with the ability to invest in growth and weather economic uncertainties.

Resilient Energy Sourcing

Long-term energy sourcing agreements ensure stability and cost control, supporting Norsk Hydro's operations and sustainability goals.

Negative Factors

Geopolitical and Economic Uncertainty

Geopolitical and economic uncertainties can disrupt supply chains and market dynamics, posing risks to Norsk Hydro's operations and profitability.

Challenges in Brazil

Impairments in Brazil highlight operational risks and potential financial strain from regulatory and infrastructure challenges in key markets.

Pressure on Extrusion Margins

Margin pressure in the extrusion segment could impact profitability, necessitating strategic adjustments to maintain competitive advantage.

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 primarily through the production and sale of aluminum and aluminum-based products. Its key revenue streams include the sale of primary aluminum, which is produced at its smelters, and value-added products such as rolled and extruded aluminum. The company also earns revenue from its energy segment, which produces renewable hydropower and sells electricity, both for internal use and to external customers. Significant partnerships with companies in the automotive and construction industries enhance its revenue potential through long-term contracts and collaborations. Additionally, Hydro benefits from its recycling operations, which provide a sustainable source of aluminum and reduce production costs. Market pricing for aluminum and energy also plays a critical role in determining the company's earnings, influenced by global supply and demand dynamics.

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. Overall, Norsk Hydro is well-positioned in the aluminum industry with a sound financial foundation.

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	215.35B	203.63B	193.62B	207.93B	149.65B	138.12B
Gross Profit	81.22B	74.29B	70.08B	78.56B	52.97B	53.53B
EBITDA	31.78B	22.19B	18.27B	59.19B	27.79B	15.07B
Net Income	9.59B	5.79B	3.58B	24.15B	12.16B	1.84B
Balance Sheet
Total Assets	203.29B	207.37B	206.46B	198.62B	174.51B	164.41B
Cash, Cash Equivalents and Short-Term Investments	23.35B	16.77B	26.48B	31.70B	26.57B	21.25B
Total Debt	37.55B	11.00M	954.00M	32.77B	28.42B	29.56B
Total Liabilities	96.69B	99.92B	99.28B	90.82B	86.13B	86.96B
Stockholders Equity	99.26B	101.46B	100.58B	102.45B	84.06B	74.28B
Cash Flow
Free Cash Flow	10.28B	1.80B	8.58B	19.79B	4.66B	7.23B
Operating Cash Flow	22.88B	15.36B	22.22B	29.39B	10.68B	13.52B
Investing Cash Flow	-13.01B	-12.92B	-20.76B	-10.56B	-4.68B	-8.32B
Financing Cash Flow	-9.62B	-12.56B	-6.70B	-13.25B	-4.37B	1.07B

Norsk Hydro Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.71
• 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 6.71 is above the 20-day moving average (MA) of 6.51, above the 50-day MA of 6.26, and above the 200-day MA of 5.78, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 64.43 is Neutral, neither overbought nor oversold. The STOCH value of 100.01 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	$13.07B	15.01	9.27%	3.25%	13.94%	3922.52%
AA	73 Outperform	$8.01B	7.93	20.01%	1.24%	21.32%	―
KALU	68 Neutral	$1.22B	19.40	8.89%	4.08%	4.62%	56.04%
CENX	66 Neutral	$2.29B	22.06	17.74%	―	15.39%	-47.91%
CSTM	64 Neutral	$2.02B	75.35	3.02%	―	2.52%	-83.35%
Sector *	61 Neutral	$10.48B	7.30	-0.05%	2.85%	2.87%	-36.73%
MP	60 Neutral	$11.16B	―	-9.57%	―	39.42%	-172.40%