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Norsk Hydro (NHYDY)
OTHER OTC:NHYDY
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Norsk Hydro
(OTC:NHYDY)
67Neutral
Norsk Hydro (NHYDY) vs. S&P 500 (SPY)
Market Cap
$11.67B
Dividend Yield2.79%
Average Volume (3M)13.31K
Price to Earnings (P/E)21.9
Beta (1Y)0.94
Revenue Growth2.58%
EPS Growth61.16%
CountryUS
Employees32,614
SectorBasic Materials
Sector Strength59
IndustryAluminum
Share Statistics
EPS (TTM)0.27
Shares Outstanding2,009,016,000
10 Day Avg. Volume0
30 Day Avg. Volume13,313
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)N/A
Price to Sales (P/S)0.89
Price to Cash Flow (P/CF)4.10
P/FCF Ratio7.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Norsk Hydro Business Overview & Revenue Model
Company DescriptionNorsk Hydro ASA (NHYDY) is a leading global aluminum and energy company headquartered in Oslo, Norway. It operates across the entire aluminum value chain, from bauxite mining and alumina refining to primary aluminum production, energy generation, and recycling. The company is committed to sustainable business practices and innovation, making it a significant player in various sectors, including automotive, construction, and packaging.
How the Company Makes MoneyNorsk Hydro makes money through several key revenue streams centered around its integrated aluminum operations. The company earns income from the sale of bauxite and alumina, which are essential raw materials for aluminum production. It also generates significant revenue from the production and sale of primary aluminum and its downstream products, which are used in industries such as automotive and construction. Additionally, Norsk Hydro benefits from its energy segment, which provides hydroelectric power to support its operations and is also sold externally. Strategic partnerships and investments in renewable energy and recycling initiatives further contribute to its earnings, aligning with the company's focus on sustainability and efficient resource management.
Norsk Hydro Financial Statement Overview
Summary
Norsk Hydro demonstrates solid financial health, with consistent revenue growth and improved profitability margins. The balance sheet is robust with low leverage and a high equity ratio, ensuring stability. However, cash flow concerns arise due to a significant decline in free cash flow, warranting attention. Overall, the company is on a positive trajectory but needs to address cash flow sustainability.Income Statement
Norsk Hydro has shown consistent revenue growth with a notable increase from 193.6 billion in 2023 to 203.6 billion in 2024, reflecting a 5.2% growth rate. Gross profit margin has improved slightly to 36.5% in 2024 compared to 36.2% in 2023. However, the absence of EBIT data for 2023 and 2024 is concerning. EBITDA margin remained stable at approximately 10.9%. The net profit margin improved significantly to 2.8% in 2024 from 1.9% in 2023, indicating enhanced profitability.75
Positive
Balance Sheet
The company's balance sheet is strong, with a high equity ratio of 48.9% in 2024, indicating a stable financial structure. The debt-to-equity ratio improved significantly, dropping to a very low level of 0.0001, reflecting reduced leverage. Return on equity decreased slightly to 5.7% in 2024 from 3.6% in 2023, which is still a positive indicator of profitability relative to shareholder's equity.80
Positive
Cash Flow
Free cash flow decreased from 8.6 billion in 2023 to 1.8 billion in 2024, a significant drop indicating potential cash flow issues. The operating cash flow to net income ratio decreased to 2.65, reflecting a strong cash generation relative to net income. However, the free cash flow to net income ratio fell dramatically to 0.31, indicating potential difficulties in maintaining free cash flow levels.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 203.63B | 193.62B | 207.93B | 149.65B | 138.12B | Gross Profit |
| 74.29B | 70.08B | 78.56B | 52.97B | 53.53B | EBIT |
| 0.00 | 0.00 | 33.05B | 19.59B | 1.03B | EBITDA |
| 22.19B | 18.27B | 59.19B | 27.79B | 15.07B | Net Income Common Stockholders |
| 5.79B | 3.58B | 24.15B | 12.16B | 1.84B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 16.77B | 26.48B | 31.70B | 26.57B | 21.25B | Total Assets |
| 207.37B | 206.46B | 198.62B | 174.51B | 164.41B | Total Debt |
| 11.00M | 954.00M | 32.77B | 28.42B | 29.56B | Net Debt |
| -15.04B | 11.47B | 2.97B | 5.49B | 11.92B | Total Liabilities |
| 99.92B | 99.28B | 90.82B | 86.13B | 86.96B | Stockholders Equity |
| 101.46B | 100.58B | 102.45B | 84.06B | 74.28B |
| Cash Flow | Free Cash Flow | |||
| 1.80B | 8.58B | 19.79B | 4.66B | 7.23B | Operating Cash Flow |
| 15.36B | 22.22B | 29.39B | 10.68B | 13.52B | Investing Cash Flow |
| -12.92B | -20.76B | -10.56B | -4.68B | -8.32B | Financing Cash Flow |
| -12.56B | -6.70B | -13.25B | -4.37B | 1.07B |
Norsk Hydro Technical Analysis
Negative
5.73
Price Trends
6.07
Negative
6.02
Negative
5.96
Negative
Market Momentum
-0.02
Positive
36.28
Neutral
-0.07
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NHYDY, the sentiment is Negative. The current price of 5.73 is below the 20-day moving average (MA) of 6.27, below the 50-day MA of 6.07, and below the 200-day MA of 5.96, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 36.28 is Neutral, neither overbought nor oversold. The STOCH value of -0.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NHYDY.
Norsk Hydro Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $104.65B | 8.58 | 20.93% | 7.11% | -0.81% | 14.59% | |
67 Neutral | $11.67B | 21.86 | 5.69% | 2.79% | 2.58% | 61.16% | |
67 Neutral | $7.94B | 109.34 | 1.28% | 1.30% | 14.80% | 96.53% | |
66 Neutral | $1.71B | 5.77 | 64.15% | ― | 1.60% | ― | |
66 Neutral | $54.20B | 16.83 | 11.13% | 2.08% | 58.27% | ― | |
57 Neutral | $976.01M | 21.14 | 7.09% | 4.96% | -2.04% | -1.36% | |
47 Neutral | $2.65B | -3.07 | -22.25% | 3.27% | 3.70% | -29.53% |
* Basic Materials Sector Average
Performance Comparison
NHYDY
Norsk Hydro
5.73
0.46
8.73%
AA
Alcoa
30.50
-3.14
-9.33%
CENX
Century Aluminum
18.56
3.03
19.51%
KALU
Kaiser Aluminum
60.62
-24.66
-28.92%
NEM
Newmont Mining
48.28
12.67
35.58%
RIO
Rio Tinto
60.08
-0.12
-0.20%
Norsk Hydro Earnings Call Summary
Earnings Call Date: Feb 14, 2025 | % Change Since: -3.86% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with significant achievements in safety, CO2 reduction, and strategic partnerships offset by challenges such as weak demand in the extrusions market, tariff pressures in the U.S., and energy market disruptions. While the company is making strong strides towards sustainability and renewable energy, it faces market and geopolitical challenges.Highlights
Record Low TRI Rate
Hydro achieved a record low TRI rate in Q4 2024, demonstrating improvements in safety measures despite a slight increase in high-risk incidents.
Achievement of CO2 Reduction Target
Hydro achieved its 2025 CO2 emission reduction target of 10% one year ahead of schedule.
Strong Bauxite and Alumina Performance
Bauxite and alumina segments achieved record results driven by high alumina prices.
Proposed Cash Dividend
Hydro proposed a cash dividend of 50% of adjusted net income, translating into NOK2.25 per share.
Partnerships to Accelerate Green Aluminum Transition
Hydro strengthened key partnerships with Rio Tinto and Siemens Mobility to accelerate the transition to green aluminum.
Increased Renewable Energy Projects
Hydro Rein has 1.7 gigawatts of renewable projects in operation, with a total of 8.4 gigawatts in development.
Lowlights
Weak Market Demand for Extrusions
Hydro extrusions continue to face weak market demand, leading to significant restructuring measures and a reduction of 900 full-time positions.
Tariff Challenges in the U.S.
The reintroduction of Section 232 tariffs by the U.S. is expected to add cost pressure in the U.S. market.
Challenges in Swedish and Brazilian Energy Markets
Underperformance from wind power plants in Sweden led to a voluntary PPA termination, and there were volume disruptions in Brazil, resulting in NOK0.4 billion in impairments.
Decline in Extrusion Sales Volumes
Extrusion sales volumes declined by 7% year-over-year in Q4 2024, with transportation volumes particularly affected.
Increased Fixed Costs
Fixed costs increased in 2024, mainly in Bauxite and Alumina and Aluminum Metal segments.
Company Guidance
In Hydro's Fourth Quarter 2024 presentation, CEO Eivind Kallevik highlighted several key metrics and strategic achievements. The company's adjusted EBITDA for Q4 was NOK7.7 billion, with a free cash flow of NOK1.7 billion and an adjusted RoaCE rate of 8.5%. Hydro achieved a notable milestone by meeting its 2025 CO2 emission reduction target of 10% a year ahead of schedule. However, the extrusion market faced challenges due to weak demand, prompting restructuring efforts aimed at cost reductions and efficiency improvements. The company proposed a cash dividend of 50% of adjusted net income, translating to NOK2.25 per share. In the context of geopolitical shifts, notably the reintroduction of Section 232 tariffs by the U.S., Hydro anticipates limited impact on its U.S. operations due to its largely domestic raw material sourcing. The company remains committed to its 2030 strategy, focusing on decarbonization, renewable energy expansion, and ensuring a stable and competitive energy supply.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.