NORSK HYDRO ASA (NHY.OL) Stock Fundamental Analysis
OSL:NHY - Euronext Oslo - NO0005052605 - Common Stock - Currency: NOK
Taking everything into account, NHY scores 7 out of 10 in our fundamental rating. NHY was compared to 36 industry peers in the Metals & Mining industry. While NHY has a great profitability rating, there are some minor concerns on its financial health. NHY is valued quite cheap, while showing a decent growth score. This is a good combination! NHY also has an excellent dividend rating. This makes NHY very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
NHY had positive earnings in the past year.
In the past year NHY had a positive cash flow from operations.
In the past 5 years NHY has always been profitable.
Each year in the past 5 years NHY had a positive operating cash flow.
1.2 Ratios
NHY's Return On Assets of 4.65% is fine compared to the rest of the industry. NHY outperforms 68.29% of its industry peers.
NHY has a better Return On Equity (9.46%) than 68.29% of its industry peers.
With an excellent Return On Invested Capital value of 10.81%, NHY belongs to the best of the industry, outperforming 87.80% 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 7.09%.
The last Return On Invested Capital (10.81%) for NHY is above the 3 year average (9.64%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 4.54%, NHY is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
NHY's Profit Margin has declined in the last couple of years.
NHY's Operating Margin of 10.44% is in line compared to the rest of the industry. NHY outperforms 58.54% of its industry peers.
NHY's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 37.24%, NHY is doing good in the industry, outperforming 65.85% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so NHY is still 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 2.63 indicates that NHY is not a great score, but indicates only limited risk for bankruptcy at the moment.
NHY has a better Altman-Z score (2.63) than 73.17% 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's Debt to FCF ratio of 6.11 is fine compared to the rest of the industry. NHY outperforms 63.41% of its industry peers.
NHY has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of NHY (0.23) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 2.63 |
ROIC/WACC1.18
WACC9.13%
2.3 Liquidity
A Current Ratio of 1.65 indicates that NHY should not have too much problems paying its short term obligations.
NHY has a Current ratio (1.65) which is in line with its industry peers.
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.
With a decent Quick ratio value of 1.10, NHY is doing good in the industry, outperforming 60.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 49.86% over the past year.
Measured over the past years, NHY shows a very strong growth in Earnings Per Share. The EPS has been growing by 53.39% on average per year.
Looking at the last year, NHY shows a quite strong growth in Revenue. The Revenue has grown by 10.67% in the last year.
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)49.86%
EPS 3Y-9.89%
EPS 5Y53.39%
EPS Q2Q%75.27%
Revenue 1Y (TTM)10.67%
Revenue growth 3Y10.81%
Revenue growth 5Y6.34%
Sales Q2Q%20.08%
3.2 Future
Based on estimates for the next years, NHY will show a very strong growth in Earnings Per Share. The EPS will grow by 20.60% on average per year.
The Revenue is expected to decrease by -0.18% on average over the next years.
EPS Next Y40.23%
EPS Next 2Y24.78%
EPS Next 3Y18.91%
EPS Next 5Y20.6%
Revenue Next Year1.52%
Revenue Next 2Y1.67%
Revenue Next 3Y2.61%
Revenue Next 5Y-0.18%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NHY is valuated reasonably with a Price/Earnings ratio of 10.62.
Based on the Price/Earnings ratio, NHY is valued cheaply inside the industry as 80.49% of the companies are valued more expensively.
NHY is valuated cheaply when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.88, the valuation of NHY can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NHY indicates a rather cheap valuation: NHY is cheaper than 85.37% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of NHY to the average of the S&P500 Index (22.13), we can say NHY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.62 | ||
| Fwd PE | 7.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NHY is valued cheaply inside the industry as 87.80% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, NHY is valued a bit cheaper than 65.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.23 | ||
| EV/EBITDA | 3.68 |
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.
A more expensive valuation may be justified as NHY's earnings are expected to grow with 18.91% in the coming years.
PEG (NY)0.26
PEG (5Y)0.2
EPS Next 2Y24.78%
EPS Next 3Y18.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.01%, NHY is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.20, NHY pays a better dividend. On top of this NHY pays more dividend than 85.37% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, NHY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
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 (6/13/2025, 7:00:00 PM)
55.24
-0.86 (-1.53%)
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 Cap110.98B
Analysts73.64
Price Target70.45 (27.53%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.01% |
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)0%
PT rev (3m)-13.67%
EPS NQ rev (1m)-9.14%
EPS NQ rev (3m)-15.7%
EPS NY rev (1m)0%
EPS NY rev (3m)-16.36%
Revenue NQ rev (1m)1.37%
Revenue NQ rev (3m)-11.18%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.62 | ||
| Fwd PE | 7.88 | ||
| P/S | 0.52 | ||
| P/FCF | 18.23 | ||
| P/OCF | 5.76 | ||
| P/B | 1.08 | ||
| P/tB | 1.17 | ||
| EV/EBITDA | 3.68 |
EPS(TTM)5.2
EY9.41%
EPS(NY)7.01
Fwd EY12.68%
FCF(TTM)3.03
FCFY5.48%
OCF(TTM)9.59
OCFY17.36%
SpS106.11
BVpS50.98
TBVpS47.03
PEG (NY)0.26
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 | 2.63 |
F-Score8
WACC9.13%
ROIC/WACC1.18
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)49.86%
EPS 3Y-9.89%
EPS 5Y53.39%
EPS Q2Q%75.27%
EPS Next Y40.23%
EPS Next 2Y24.78%
EPS Next 3Y18.91%
EPS Next 5Y20.6%
Revenue 1Y (TTM)10.67%
Revenue growth 3Y10.81%
Revenue growth 5Y6.34%
Sales Q2Q%20.08%
Revenue Next Year1.52%
Revenue Next 2Y1.67%
Revenue Next 3Y2.61%
Revenue Next 5Y-0.18%
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%