NORSK HYDRO ASA (NHY.OL) Stock Fundamental Analysis
OSL:NHY - NO0005052605 - Common Stock
66.8 NOK
+1.1 (+1.67%)
We assign a fundamental rating of 6 out of 10 to NHY. NHY was compared to 38 industry peers in the Metals & Mining industry. NHY scores excellent on profitability, but there are some minor concerns on its financial health. NHY scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make NHY a good candidate for value investing.
1. Profitability
1.1 Basic Checks
NHY had positive earnings in the past year.
NHY had a positive operating cash flow in the past year.
In the past 5 years NHY has always been profitable.
NHY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NHY has a Return On Assets of 4.72%. This is in the better half of the industry: NHY outperforms 73.68% of its industry peers.
NHY has a Return On Equity of 9.66%. This is in the better half of the industry: NHY outperforms 68.42% of its industry peers.
NHY has a better Return On Invested Capital (11.08%) than 89.47% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NHY is in line with the industry average of 8.00%.
The last Return On Invested Capital (11.08%) for NHY is above the 3 year average (9.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.72% | ||
| ROE | 9.66% | ||
| ROIC | 11.08% |
ROA(3y)5.56%
ROA(5y)4.96%
ROE(3y)10.95%
ROE(5y)9.96%
ROIC(3y)9.64%
ROIC(5y)8.3%
1.3 Margins
The Profit Margin of NHY (4.45%) is better than 65.79% of its industry peers.
NHY's Profit Margin has declined in the last couple of years.
NHY's Operating Margin of 10.86% is fine compared to the rest of the industry. NHY outperforms 63.16% of its industry peers.
In the last couple of years the Operating Margin of NHY has grown nicely.
NHY has a better Gross Margin (37.76%) than 65.79% of its industry peers.
In the last couple of years the Gross Margin of NHY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.86% | ||
| PM (TTM) | 4.45% | ||
| GM | 37.76% |
OM growth 3Y-9.93%
OM growth 5Y63.9%
PM growth 3Y-29.53%
PM growth 5YN/A
GM growth 3Y-3.53%
GM growth 5Y0.88%
2. Health
2.1 Basic Checks
NHY has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, NHY has less shares outstanding
NHY has less shares outstanding than it did 5 years ago.
NHY has a better debt/assets ratio than last year.
2.2 Solvency
NHY has an Altman-Z score of 2.84. This is not the best score and indicates that NHY is in the grey zone with still only limited risk for bankruptcy at the moment.
NHY's Altman-Z score of 2.84 is fine compared to the rest of the industry. NHY outperforms 68.42% of its industry peers.
The Debt to FCF ratio of NHY is 3.65, which is a good value as it means it would take NHY, 3.65 years of fcf income to pay off all of its debts.
NHY has a Debt to FCF ratio of 3.65. This is in the better half of the industry: NHY outperforms 71.05% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that NHY is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.30, NHY is not doing good in the industry: 60.53% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.65 | ||
| Altman-Z | 2.84 |
ROIC/WACC1.2
WACC9.26%
2.3 Liquidity
A Current Ratio of 1.92 indicates that NHY should not have too much problems paying its short term obligations.
NHY's Current ratio of 1.92 is fine compared to the rest of the industry. NHY outperforms 60.53% of its industry peers.
NHY has a Quick Ratio of 1.27. This is a normal value and indicates that NHY is financially healthy and should not expect problems in meeting its short term obligations.
NHY's Quick ratio of 1.27 is fine compared to the rest of the industry. NHY outperforms 71.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
NHY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 121.35%, which is quite impressive.
The Earnings Per Share has been growing by 53.39% on average over the past years. This is a very strong growth
NHY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.38%.
Measured over the past years, NHY shows a small growth in Revenue. The Revenue has been growing by 6.34% on average per year.
EPS 1Y (TTM)121.35%
EPS 3Y-9.89%
EPS 5Y53.39%
EPS Q2Q%73.2%
Revenue 1Y (TTM)13.38%
Revenue growth 3Y10.81%
Revenue growth 5Y6.34%
Sales Q2Q%4.26%
3.2 Future
NHY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.12% yearly.
NHY is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.19% yearly.
EPS Next Y29.18%
EPS Next 2Y19.43%
EPS Next 3Y15.46%
EPS Next 5Y17.12%
Revenue Next Year1.84%
Revenue Next 2Y1.02%
Revenue Next 3Y2.14%
Revenue Next 5Y-0.19%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
NHY is valuated reasonably with a Price/Earnings ratio of 11.30.
78.95% of the companies in the same industry are more expensive than NHY, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of NHY to the average of the S&P500 Index (27.06), we can say NHY is valued rather cheaply.
The Price/Forward Earnings ratio is 10.41, which indicates a very decent valuation of NHY.
NHY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NHY is cheaper than 71.05% of the companies in the same industry.
NHY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.3 | ||
| Fwd PE | 10.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NHY is valued cheaper than 86.84% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NHY is valued cheaper than 86.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.86 | ||
| EV/EBITDA | 4.18 |
4.3 Compensation for Growth
NHY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NHY has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as NHY's earnings are expected to grow with 15.46% in the coming years.
PEG (NY)0.39
PEG (5Y)0.21
EPS Next 2Y19.43%
EPS Next 3Y15.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.42%, NHY has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.18, NHY pays a bit more dividend than its industry peers.
NHY's Dividend Yield is a higher than the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
5.2 History
The dividend of NHY is nicely growing with an annual growth rate of 14.41%!
Dividend Growth(5Y)14.41%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
NHY pays out 46.35% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of NHY is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP46.35%
EPS Next 2Y19.43%
EPS Next 3Y15.46%
OSL:NHY (9/5/2025, 7:00:00 PM)
66.8
+1.1 (+1.67%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners43.71%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap132.16B
Analysts72.38
Price Target68.95 (3.22%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.42% |
Yearly Dividend2.51
Dividend Growth(5Y)14.41%
DP46.35%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.05%
Min EPS beat(2)-24.14%
Max EPS beat(2)-1.96%
EPS beat(4)0
Avg EPS beat(4)-17.32%
Min EPS beat(4)-38.73%
Max EPS beat(4)-1.96%
EPS beat(8)0
Avg EPS beat(8)-24.31%
EPS beat(12)3
Avg EPS beat(12)-11.74%
EPS beat(16)6
Avg EPS beat(16)-8.44%
Revenue beat(2)2
Avg Revenue beat(2)2.19%
Min Revenue beat(2)2.09%
Max Revenue beat(2)2.3%
Revenue beat(4)3
Avg Revenue beat(4)2.08%
Min Revenue beat(4)-1.4%
Max Revenue beat(4)5.34%
Revenue beat(8)4
Avg Revenue beat(8)0.93%
Revenue beat(12)7
Avg Revenue beat(12)1.6%
Revenue beat(16)9
Avg Revenue beat(16)2.84%
PT rev (1m)6.14%
PT rev (3m)-2.12%
EPS NQ rev (1m)1.52%
EPS NQ rev (3m)-23.26%
EPS NY rev (1m)-7.87%
EPS NY rev (3m)-7.87%
Revenue NQ rev (1m)-2.15%
Revenue NQ rev (3m)-16.57%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.3 | ||
| Fwd PE | 10.41 | ||
| P/S | 0.61 | ||
| P/FCF | 12.86 | ||
| P/OCF | 5.78 | ||
| P/B | 1.33 | ||
| P/tB | 1.45 | ||
| EV/EBITDA | 4.18 |
EPS(TTM)5.91
EY8.85%
EPS(NY)6.42
Fwd EY9.61%
FCF(TTM)5.2
FCFY7.78%
OCF(TTM)11.56
OCFY17.31%
SpS108.85
BVpS50.17
TBVpS46.18
PEG (NY)0.39
PEG (5Y)0.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.72% | ||
| ROE | 9.66% | ||
| ROCE | 14.39% | ||
| ROIC | 11.08% | ||
| ROICexc | 12.93% | ||
| ROICexgc | 13.71% | ||
| OM | 10.86% | ||
| PM (TTM) | 4.45% | ||
| GM | 37.76% | ||
| FCFM | 4.77% |
ROA(3y)5.56%
ROA(5y)4.96%
ROE(3y)10.95%
ROE(5y)9.96%
ROIC(3y)9.64%
ROIC(5y)8.3%
ROICexc(3y)11.87%
ROICexc(5y)10.38%
ROICexgc(3y)12.76%
ROICexgc(5y)11.22%
ROCE(3y)12.54%
ROCE(5y)10.82%
ROICexcg growth 3Y-10.73%
ROICexcg growth 5Y69.35%
ROICexc growth 3Y-9.94%
ROICexc growth 5Y70.51%
OM growth 3Y-9.93%
OM growth 5Y63.9%
PM growth 3Y-29.53%
PM growth 5YN/A
GM growth 3Y-3.53%
GM growth 5Y0.88%
F-Score8
Asset Turnover1.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.65 | ||
| Debt/EBITDA | 0.88 | ||
| Cap/Depr | 119.4% | ||
| Cap/Sales | 5.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.39% | ||
| Profit Quality | 107.17% | ||
| Current Ratio | 1.92 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 2.84 |
F-Score8
WACC9.26%
ROIC/WACC1.2
Cap/Depr(3y)113.19%
Cap/Depr(5y)94.53%
Cap/Sales(3y)6.11%
Cap/Sales(5y)5.44%
Profit Quality(3y)114.82%
Profit Quality(5y)160.97%
High Growth Momentum
Growth
EPS 1Y (TTM)121.35%
EPS 3Y-9.89%
EPS 5Y53.39%
EPS Q2Q%73.2%
EPS Next Y29.18%
EPS Next 2Y19.43%
EPS Next 3Y15.46%
EPS Next 5Y17.12%
Revenue 1Y (TTM)13.38%
Revenue growth 3Y10.81%
Revenue growth 5Y6.34%
Sales Q2Q%4.26%
Revenue Next Year1.84%
Revenue Next 2Y1.02%
Revenue Next 3Y2.14%
Revenue Next 5Y-0.19%
EBIT growth 1Y188.56%
EBIT growth 3Y-0.19%
EBIT growth 5Y74.29%
EBIT Next Year77.42%
EBIT Next 3Y26.03%
EBIT Next 5YN/A
FCF growth 1Y-35.35%
FCF growth 3Y-41.66%
FCF growth 5Y-15.47%
OCF growth 1Y-18.99%
OCF growth 3Y2%
OCF growth 5Y3.91%