NORSK HYDRO ASA (NHY.OL) Stock Fundamental Analysis
OSL:NHY - Euronext Oslo - NO0005052605 - Common Stock - Currency: NOK
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 may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make NHY suitable 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.
Each year in the past 5 years NHY has been profitable.
In the past 5 years NHY always reported a positive cash flow from operatings.
1.2 Ratios
NHY's Return On Assets of 4.65% is fine compared to the rest of the industry. NHY outperforms 65.79% of its industry peers.
NHY has a Return On Equity of 9.46%. This is in the better half of the industry: NHY outperforms 65.79% of its industry peers.
With an excellent Return On Invested Capital value of 10.81%, NHY belongs to the best of the industry, outperforming 81.58% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for NHY is above the industry average of 7.58%.
The 3 year average ROIC (9.64%) for NHY is below the current ROIC(10.81%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.65% | ||
| ROE | 9.46% | ||
| ROIC | 10.81% |
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 better Profit Margin (4.54%) than 63.16% of its industry peers.
In the last couple of years the Profit Margin of NHY has declined.
NHY has a better Operating Margin (10.44%) than 63.16% of its industry peers.
NHY's Operating Margin has improved in the last couple of years.
The Gross Margin of NHY (37.24%) is better than 65.79% of its industry peers.
NHY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.44% | ||
| PM (TTM) | 4.54% | ||
| GM | 37.24% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), NHY is creating some value.
Compared to 1 year ago, NHY has less shares outstanding
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
An Altman-Z score of 2.72 indicates that NHY is not a great score, but indicates only limited risk for bankruptcy at the moment.
NHY's Altman-Z score of 2.72 is fine compared to the rest of the industry. NHY outperforms 65.79% of its industry peers.
The Debt to FCF ratio of NHY is 6.11, which is on the high side as it means it would take NHY, 6.11 years of fcf income to pay off all of its debts.
NHY has a Debt to FCF ratio (6.11) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.23 indicates that NHY is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.23, NHY perfoms like the industry average, outperforming 44.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 2.72 |
ROIC/WACC1.17
WACC9.25%
2.3 Liquidity
NHY has a Current Ratio of 1.65. This is a normal value and indicates that NHY is financially healthy and should not expect problems in meeting its short term obligations.
NHY has a Current ratio (1.65) which is comparable to the rest of the industry.
NHY has a Quick Ratio of 1.10. This is a normal value and indicates that NHY is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of NHY (1.10) is better than 60.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.1 |
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 a small growth in Revenue. In the last year, the Revenue has grown by 5.17%.
The Revenue has been growing slightly by 6.34% on average over the past years.
EPS 1Y (TTM)121.35%
EPS 3Y-9.89%
EPS 5Y53.39%
EPS Q2Q%73.2%
Revenue 1Y (TTM)5.17%
Revenue growth 3Y10.81%
Revenue growth 5Y6.34%
Sales Q2Q%4.26%
3.2 Future
The Earnings Per Share is expected to grow by 20.56% on average over the next years. This is a very strong growth
Based on estimates for the next years, NHY will show a decrease in Revenue. The Revenue will decrease by -0.21% on average per year.
EPS Next Y40.23%
EPS Next 2Y24.78%
EPS Next 3Y18.91%
EPS Next 5Y20.56%
Revenue Next Year1.74%
Revenue Next 2Y1.02%
Revenue Next 3Y2.16%
Revenue Next 5Y-0.21%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
The Price/Earnings ratio is 10.89, which indicates a very decent valuation of NHY.
Compared to the rest of the industry, the Price/Earnings ratio of NHY indicates a somewhat cheap valuation: NHY is cheaper than 73.68% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of NHY to the average of the S&P500 Index (26.51), we can say NHY is valued rather cheaply.
A Price/Forward Earnings ratio of 9.18 indicates a reasonable valuation of NHY.
NHY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NHY is cheaper than 78.95% 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 34.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.89 | ||
| Fwd PE | 9.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NHY is valued cheaply inside the industry as 84.21% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as NHY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.91 | ||
| 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.
The decent profitability rating of NHY may justify a higher PE ratio.
A more expensive valuation may be justified as NHY's earnings are expected to grow with 18.91% in the coming years.
PEG (NY)0.27
PEG (5Y)0.2
EPS Next 2Y24.78%
EPS Next 3Y18.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.55%, NHY has a reasonable but not impressive dividend return.
NHY's Dividend Yield is a higher than the industry average which is at 3.03.
Compared to an average S&P500 Dividend Yield of 2.40, NHY pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
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
51.79% of the earnings are spent on dividend by NHY. This is a bit on the high side, but may be sustainable.
NHY's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP51.79%
EPS Next 2Y24.78%
EPS Next 3Y18.91%
OSL:NHY (8/8/2025, 7:00:00 PM)
64.34
+0.9 (+1.42%)
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 Cap127.30B
Analysts70.91
Price Target67.83 (5.42%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.55% |
Yearly Dividend2.51
Dividend Growth(5Y)14.41%
DP51.79%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-31.44%
Min EPS beat(2)-38.73%
Max EPS beat(2)-24.14%
EPS beat(4)0
Avg EPS beat(4)-23.42%
Min EPS beat(4)-38.73%
Max EPS beat(4)-4.44%
EPS beat(8)1
Avg EPS beat(8)-22.97%
EPS beat(12)4
Avg EPS beat(12)-10.35%
EPS beat(16)7
Avg EPS beat(16)-7.56%
Revenue beat(2)2
Avg Revenue beat(2)3.82%
Min Revenue beat(2)2.3%
Max Revenue beat(2)5.34%
Revenue beat(4)2
Avg Revenue beat(4)0.52%
Min Revenue beat(4)-4.17%
Max Revenue beat(4)5.34%
Revenue beat(8)4
Avg Revenue beat(8)1.59%
Revenue beat(12)7
Avg Revenue beat(12)3.26%
Revenue beat(16)8
Avg Revenue beat(16)2.63%
PT rev (1m)-1.39%
PT rev (3m)-3.72%
EPS NQ rev (1m)5.63%
EPS NQ rev (3m)-1.81%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-1.09%
Revenue NQ rev (3m)0.86%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.89 | ||
| Fwd PE | 9.18 | ||
| P/S | 0.6 | ||
| P/FCF | 20.91 | ||
| P/OCF | 6.61 | ||
| P/B | 1.24 | ||
| P/tB | 1.35 | ||
| EV/EBITDA | 4.18 |
EPS(TTM)5.91
EY9.19%
EPS(NY)7.01
Fwd EY10.89%
FCF(TTM)3.08
FCFY4.78%
OCF(TTM)9.74
OCFY15.14%
SpS107.75
BVpS51.76
TBVpS47.75
PEG (NY)0.27
PEG (5Y)0.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.65% | ||
| ROE | 9.46% | ||
| ROCE | 14.04% | ||
| ROIC | 10.81% | ||
| ROICexc | 12.66% | ||
| ROICexgc | 13.45% | ||
| OM | 10.44% | ||
| PM (TTM) | 4.54% | ||
| GM | 37.24% | ||
| FCFM | 2.86% |
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 Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 6.11 | ||
| Debt/EBITDA | 0.73 | ||
| Cap/Depr | 125.22% | ||
| Cap/Sales | 6.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 58.77% | ||
| Profit Quality | 62.86% | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 2.72 |
F-Score8
WACC9.25%
ROIC/WACC1.17
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 Y40.23%
EPS Next 2Y24.78%
EPS Next 3Y18.91%
EPS Next 5Y20.56%
Revenue 1Y (TTM)5.17%
Revenue growth 3Y10.81%
Revenue growth 5Y6.34%
Sales Q2Q%4.26%
Revenue Next Year1.74%
Revenue Next 2Y1.02%
Revenue Next 3Y2.16%
Revenue Next 5Y-0.21%
EBIT growth 1Y79.44%
EBIT growth 3Y-0.19%
EBIT growth 5Y74.29%
EBIT Next Year77.42%
EBIT Next 3Y26.03%
EBIT Next 5YN/A
FCF growth 1Y-72.7%
FCF growth 3Y-41.66%
FCF growth 5Y-15.47%
OCF growth 1Y-42.01%
OCF growth 3Y2%
OCF growth 5Y3.91%