NORSK HYDRO ASA (NHY.OL) Stock Fundamental Analysis
Europe - Euronext Oslo - OSL:NHY - NO0005052605 - Common Stock
78.2 NOK
+0.92 (+1.19%)
We assign a fundamental rating of 6 out of 10 to NHY. NHY was compared to 40 industry peers in the Metals & Mining industry. While NHY belongs to the best of the industry regarding profitability, 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. This makes NHY very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year NHY was profitable.
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
Looking at the Return On Assets, with a value of 5.35%, NHY is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
NHY has a Return On Equity of 10.81%. This is in the better half of the industry: NHY outperforms 62.50% of its industry peers.
NHY has a Return On Invested Capital of 10.71%. This is amongst the best in the industry. NHY outperforms 85.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NHY is above the industry average of 7.31%.
The last Return On Invested Capital (10.71%) for NHY is above the 3 year average (9.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.35% | ||
| ROE | 10.81% | ||
| ROIC | 10.72% |
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
NHY has a Profit Margin (5.09%) which is in line with its industry peers.
In the last couple of years the Profit Margin of NHY has declined.
NHY has a Operating Margin (10.58%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of NHY has grown nicely.
NHY's Gross Margin of 37.48% is fine compared to the rest of the industry. NHY outperforms 65.00% of its industry peers.
NHY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.58% | ||
| PM (TTM) | 5.09% | ||
| GM | 37.48% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NHY is still creating some value.
The number of shares outstanding for NHY has been reduced compared to 1 year ago.
Compared to 5 years ago, NHY has less shares outstanding
The debt/assets ratio for NHY has been reduced compared to a year ago.
2.2 Solvency
NHY has an Altman-Z score of 2.96. 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.
The Altman-Z score of NHY (2.96) is better than 67.50% of its industry peers.
The Debt to FCF ratio of NHY is 3.69, which is a good value as it means it would take NHY, 3.69 years of fcf income to pay off all of its debts.
NHY has a Debt to FCF ratio of 3.69. This is in the better half of the industry: NHY outperforms 70.00% of its industry peers.
A Debt/Equity ratio of 0.28 indicates that NHY is not too dependend on debt financing.
NHY has a Debt to Equity ratio of 0.28. This is comparable to the rest of the industry: NHY outperforms 45.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 3.69 | ||
| Altman-Z | 2.96 |
ROIC/WACC1.14
WACC9.37%
2.3 Liquidity
A Current Ratio of 1.91 indicates that NHY should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.91, NHY is in line with its industry, outperforming 52.50% of the companies in the same industry.
A Quick Ratio of 1.25 indicates that NHY should not have too much problems paying its short term obligations.
NHY has a Quick ratio (1.25) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 39.85% over the past year.
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 10.49%.
NHY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.34% yearly.
EPS 1Y (TTM)39.85%
EPS 3Y-9.89%
EPS 5Y53.39%
EPS Q2Q%-31.54%
Revenue 1Y (TTM)10.49%
Revenue growth 3Y10.81%
Revenue growth 5Y6.34%
Sales Q2Q%0.91%
3.2 Future
The Earnings Per Share is expected to grow by 18.05% on average over the next years. This is quite good.
Based on estimates for the next years, NHY will show a small growth in Revenue. The Revenue will grow by 0.52% on average per year.
EPS Next Y26.18%
EPS Next 2Y21.29%
EPS Next 3Y15.65%
EPS Next 5Y18.05%
Revenue Next Year3.19%
Revenue Next 2Y1.19%
Revenue Next 3Y2.12%
Revenue Next 5Y0.52%
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
Based on the Price/Earnings ratio of 14.38, the valuation of NHY can be described as correct.
Based on the Price/Earnings ratio, NHY is valued a bit cheaper than 77.50% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.51. NHY is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 11.81, the valuation of NHY can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NHY indicates a somewhat cheap valuation: NHY is cheaper than 72.50% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, NHY is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.38 | ||
| Fwd PE | 11.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NHY is valued cheaper than 90.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NHY indicates a rather cheap valuation: NHY is cheaper than 87.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.43 | ||
| EV/EBITDA | 4.74 |
4.3 Compensation for Growth
The 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.
NHY's earnings are expected to grow with 15.65% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.55
PEG (5Y)0.27
EPS Next 2Y21.29%
EPS Next 3Y15.65%
5. Dividend
5.1 Amount
NHY has a Yearly Dividend Yield of 2.89%.
Compared to an average industry Dividend Yield of 1.95, 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 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
5.2 History
On average, the dividend of NHY grows each year by 14.41%, which is quite nice.
Dividend Growth(5Y)14.41%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
NHY pays out 40.44% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of NHY is growing, but earnings are growing more, so the dividend growth is sustainable.
DP40.44%
EPS Next 2Y21.29%
EPS Next 3Y15.65%
OSL:NHY (12/30/2025, 7:00:00 PM)
78.2
+0.92 (+1.19%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners44.07%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap154.72B
Revenue(TTM)215.81B
Net Income(TTM)10.99B
Analysts69.09
Price Target75.48 (-3.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
Yearly Dividend2.51
Dividend Growth(5Y)14.41%
DP40.44%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-11.09%
Min EPS beat(2)-20.21%
Max EPS beat(2)-1.96%
EPS beat(4)0
Avg EPS beat(4)-21.26%
Min EPS beat(4)-38.73%
Max EPS beat(4)-1.96%
EPS beat(8)0
Avg EPS beat(8)-19.06%
EPS beat(12)2
Avg EPS beat(12)-19.33%
EPS beat(16)5
Avg EPS beat(16)-9.81%
Revenue beat(2)2
Avg Revenue beat(2)2.72%
Min Revenue beat(2)2.09%
Max Revenue beat(2)3.36%
Revenue beat(4)4
Avg Revenue beat(4)3.27%
Min Revenue beat(4)2.09%
Max Revenue beat(4)5.34%
Revenue beat(8)5
Avg Revenue beat(8)1.53%
Revenue beat(12)7
Avg Revenue beat(12)1.32%
Revenue beat(16)10
Avg Revenue beat(16)3.12%
PT rev (1m)1.22%
PT rev (3m)9.47%
EPS NQ rev (1m)-19.65%
EPS NQ rev (3m)-26.99%
EPS NY rev (1m)1.8%
EPS NY rev (3m)-4.36%
Revenue NQ rev (1m)0.89%
Revenue NQ rev (3m)0.71%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)1.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.38 | ||
| Fwd PE | 11.81 | ||
| P/S | 0.72 | ||
| P/FCF | 15.43 | ||
| P/OCF | 7.06 | ||
| P/B | 1.52 | ||
| P/tB | 1.65 | ||
| EV/EBITDA | 4.74 |
EPS(TTM)5.44
EY6.96%
EPS(NY)6.62
Fwd EY8.47%
FCF(TTM)5.07
FCFY6.48%
OCF(TTM)11.08
OCFY14.17%
SpS109.08
BVpS51.38
TBVpS47.48
PEG (NY)0.55
PEG (5Y)0.27
Graham Number79.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.35% | ||
| ROE | 10.81% | ||
| ROCE | 13.92% | ||
| ROIC | 10.72% | ||
| ROICexc | 12.55% | ||
| ROICexgc | 13.28% | ||
| OM | 10.58% | ||
| PM (TTM) | 5.09% | ||
| GM | 37.48% | ||
| FCFM | 4.65% |
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%
ROICexgc growth 3Y-10.73%
ROICexgc 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 Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 3.69 | ||
| Debt/EBITDA | 0.86 | ||
| Cap/Depr | 111.84% | ||
| Cap/Sales | 5.51% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.51% | ||
| Profit Quality | 91.23% | ||
| Current Ratio | 1.91 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 2.96 |
F-Score8
WACC9.37%
ROIC/WACC1.14
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)39.85%
EPS 3Y-9.89%
EPS 5Y53.39%
EPS Q2Q%-31.54%
EPS Next Y26.18%
EPS Next 2Y21.29%
EPS Next 3Y15.65%
EPS Next 5Y18.05%
Revenue 1Y (TTM)10.49%
Revenue growth 3Y10.81%
Revenue growth 5Y6.34%
Sales Q2Q%0.91%
Revenue Next Year3.19%
Revenue Next 2Y1.19%
Revenue Next 3Y2.12%
Revenue Next 5Y0.52%
EBIT growth 1Y83%
EBIT growth 3Y-0.19%
EBIT growth 5Y74.29%
EBIT Next Year79.72%
EBIT Next 3Y25.56%
EBIT Next 5YN/A
FCF growth 1Y-29.93%
FCF growth 3Y-41.66%
FCF growth 5Y-15.47%
OCF growth 1Y-19.74%
OCF growth 3Y2%
OCF growth 5Y3.91%
NORSK HYDRO ASA / NHY.OL FAQ
What is the fundamental rating for NHY stock?
ChartMill assigns a fundamental rating of 6 / 10 to NHY.OL.
What is the valuation status of NORSK HYDRO ASA (NHY.OL) stock?
ChartMill assigns a valuation rating of 7 / 10 to NORSK HYDRO ASA (NHY.OL). This can be considered as Undervalued.
Can you provide the profitability details for NORSK HYDRO ASA?
NORSK HYDRO ASA (NHY.OL) has a profitability rating of 7 / 10.
What are the PE and PB ratios of NORSK HYDRO ASA (NHY.OL) stock?
The Price/Earnings (PE) ratio for NORSK HYDRO ASA (NHY.OL) is 14.38 and the Price/Book (PB) ratio is 1.52.
Is the dividend of NORSK HYDRO ASA sustainable?
The dividend rating of NORSK HYDRO ASA (NHY.OL) is 6 / 10 and the dividend payout ratio is 40.44%.