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Norsk Hydro

OB:NHY
Snowflake Description

Excellent balance sheet and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NHY
OB
NOK61B
Market Cap
  1. Home
  2. NO
  3. Materials
Company description

Norsk Hydro ASA operates as an integrated aluminum company worldwide. The last earnings update was 21 days ago. More info.


Add to Portfolio Compare Print
  • Norsk Hydro has significant price volatility in the past 3 months.
NHY Share Price and Events
7 Day Returns
-2.6%
OB:NHY
0.9%
Europe Metals and Mining
-5.3%
NO Market
1 Year Returns
-40.1%
OB:NHY
-4.4%
Europe Metals and Mining
-21.1%
NO Market
NHY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Norsk Hydro (NHY) -2.6% -7.6% -14.8% -40.1% -1.6% -11.1%
Europe Metals and Mining 0.9% 6% 1.7% -4.4% 57% 14%
NO Market -5.3% -8.4% -14.4% -21.1% 29.8% 9.7%
1 Year Return vs Industry and Market
  • NHY underperformed the Metals and Mining industry which returned -4.4% over the past year.
  • NHY underperformed the Market in Norway which returned -21.1% over the past year.
Price Volatility
NHY
Industry
5yr Volatility vs Market

Value

 Is Norsk Hydro undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Norsk Hydro to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Norsk Hydro.

OB:NHY Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 13 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.9%
Perpetual Growth Rate 10-Year NO Government Bond Rate 1.8%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OB:NHY
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year NO Govt Bond Rate 1.8%
Equity Risk Premium S&P Global 6%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 1.04
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.036 (1 + (1- 23%) (31.9%))
1.195
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.19
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.76% + (1.195 * 5.96%)
8.88%

Discounted Cash Flow Calculation for OB:NHY using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Norsk Hydro is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

OB:NHY DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (NOK, Millions) Source Present Value
Discounted (@ 8.88%)
2019 4,858.17 Analyst x6 4,461.92
2020 6,264.67 Analyst x9 5,284.41
2021 7,779.25 Analyst x8 6,026.78
2022 9,030.00 Analyst x2 6,425.16
2023 10,018.97 Est @ 10.95% 6,547.40
2024 10,839.98 Est @ 8.19% 6,506.13
2025 11,519.01 Est @ 6.26% 6,349.78
2026 12,084.92 Est @ 4.91% 6,118.38
2027 12,564.33 Est @ 3.97% 5,842.27
2028 12,979.57 Est @ 3.3% 5,543.08
Present value of next 10 years cash flows NOK59,105.31
OB:NHY DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= NOK12,979.57 × (1 + 1.76%) ÷ (8.88% – 1.76%)
NOK185,487.64
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= NOK185,487.64 ÷ (1 + 8.88%)10
NOK79,214.75
OB:NHY Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= NOK59,105.31 + NOK79,214.75
NOK138,320.06
Equity Value per Share
(NOK)
= Total value / Shares Outstanding
= NOK138,320.06 / 2,046.35
NOK67.59
OB:NHY Discount to Share Price
Calculation Result
Value per share (NOK) From above. NOK67.59
Current discount Discount to share price of NOK29.83
= -1 x (NOK29.83 - NOK67.59) / NOK67.59
55.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Norsk Hydro is available for.
Intrinsic value
>50%
Share price is NOK29.83 vs Future cash flow value of NOK67.59
Current Discount Checks
For Norsk Hydro to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Norsk Hydro's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Norsk Hydro's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Norsk Hydro's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Norsk Hydro's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OB:NHY PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in NOK NOK1.06
OB:NHY Share Price ** OB (2019-06-26) in NOK NOK29.83
Europe Metals and Mining Industry PE Ratio Median Figure of 105 Publicly-Listed Metals and Mining Companies 10.01x
Norway Market PE Ratio Median Figure of 135 Publicly-Listed Companies 13x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Norsk Hydro.

OB:NHY PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= OB:NHY Share Price ÷ EPS (both in NOK)

= 29.83 ÷ 1.06

28.07x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Norsk Hydro is overvalued based on earnings compared to the Europe Metals and Mining industry average.
  • Norsk Hydro is overvalued based on earnings compared to the Norway market.
Price based on expected Growth
Does Norsk Hydro's expected growth come at a high price?
Raw Data
OB:NHY PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 28.07x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
31.4%per year
Europe Metals and Mining Industry PEG Ratio Median Figure of 64 Publicly-Listed Metals and Mining Companies 0.69x
Norway Market PEG Ratio Median Figure of 105 Publicly-Listed Companies 0.87x

*Line of best fit is calculated by linear regression .

OB:NHY PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 28.07x ÷ 31.4%

0.9x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Norsk Hydro is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Norsk Hydro's assets?
Raw Data
OB:NHY PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in NOK NOK41.39
OB:NHY Share Price * OB (2019-06-26) in NOK NOK29.83
Europe Metals and Mining Industry PB Ratio Median Figure of 213 Publicly-Listed Metals and Mining Companies 0.89x
Norway Market PB Ratio Median Figure of 216 Publicly-Listed Companies 1.1x
OB:NHY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= OB:NHY Share Price ÷ Book Value per Share (both in NOK)

= 29.83 ÷ 41.39

0.72x

* Primary Listing of Norsk Hydro.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Norsk Hydro is good value based on assets compared to the Europe Metals and Mining industry average.
X
Value checks
We assess Norsk Hydro's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. Norsk Hydro has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Norsk Hydro expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
31.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Norsk Hydro expected to grow at an attractive rate?
  • Norsk Hydro's earnings growth is expected to exceed the low risk savings rate of 1.8%.
Growth vs Market Checks
  • Norsk Hydro's earnings growth is expected to exceed the Norway market average.
  • Norsk Hydro's revenue growth is expected to exceed the Norway market average.
Annual Growth Rates Comparison
Raw Data
OB:NHY Future Growth Rates Data Sources
Data Point Source Value (per year)
OB:NHY Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 31.4%
OB:NHY Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 4%
Europe Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 4.1%
Europe Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 1.5%
Norway Market Earnings Growth Rate Market Cap Weighted Average 14.9%
Norway Market Revenue Growth Rate Market Cap Weighted Average 3.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OB:NHY Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in NOK Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OB:NHY Future Estimates Data
Date (Data in NOK Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 181,369 9,338 1
2022-12-31 176,249 16,056 7,850 4
2021-12-31 165,202 15,985 7,792 11
2020-12-31 158,601 14,704 6,304 13
2019-12-31 153,631 12,538 2,830 13
OB:NHY Past Financials Data
Date (Data in NOK Millions) Revenue Cash Flow Net Income *
2019-03-31 157,048 5,815 2,174
2018-12-31 159,435 7,025 4,256
2018-09-30 159,882 12,480 8,448
2018-06-30 142,916 12,856 9,735
2018-03-31 126,253 15,668 9,112
2017-12-31 109,309 14,347 8,783
2017-09-30 91,828 12,195 6,344
2017-06-30 89,203 11,555 5,391
2017-03-31 85,003 10,928 5,854
2016-12-31 82,115 10,018 6,388
2016-09-30 81,315 10,173 5,806
2016-06-30 82,735 12,290 3,398

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Norsk Hydro's earnings are expected to grow significantly at over 20% yearly.
  • Norsk Hydro's revenue is expected to grow by 4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OB:NHY Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from Norsk Hydro Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OB:NHY Future Estimates Data
Date (Data in NOK Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 4.56 4.56 4.56 1.00
2022-12-31 3.65 4.23 3.08 4.00
2021-12-31 3.73 4.50 2.94 11.00
2020-12-31 3.08 3.84 2.04 13.00
2019-12-31 1.38 2.48 0.94 13.00
OB:NHY Past Financials Data
Date (Data in NOK Millions) EPS *
2019-03-31 1.06
2018-12-31 2.08
2018-09-30 4.13
2018-06-30 4.76
2018-03-31 4.46
2017-12-31 4.30
2017-09-30 3.10
2017-06-30 2.64
2017-03-31 2.87
2016-12-31 3.13
2016-09-30 2.84
2016-06-30 1.66

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Norsk Hydro is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Norsk Hydro's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Norsk Hydro has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Norsk Hydro performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Norsk Hydro's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Norsk Hydro has delivered over 20% year on year earnings growth in the past 5 years.
  • Norsk Hydro's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Norsk Hydro's 1-year earnings growth is negative, it can't be compared to the Europe Metals and Mining industry average.
Earnings and Revenue History
Norsk Hydro's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Norsk Hydro Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OB:NHY Past Revenue, Cash Flow and Net Income Data
Date (Data in NOK Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 157,048.00 2,174.00 24,301.00
2018-12-31 159,435.00 4,256.00 23,971.00
2018-09-30 159,882.00 8,448.00 23,288.00
2018-06-30 142,916.00 9,735.00 20,055.00
2018-03-31 126,253.00 9,112.00 16,907.00
2017-12-31 109,309.00 8,783.00 13,748.00
2017-09-30 91,828.00 6,344.00 10,455.00
2017-06-30 89,203.00 5,391.00 10,332.00
2017-03-31 85,003.00 5,854.00 10,111.00
2016-12-31 82,115.00 6,388.00 9,897.00
2016-09-30 81,315.00 5,806.00 10,012.00
2016-06-30 82,735.00 3,398.00 9,896.00
2016-03-31 84,781.00 3,368.00 9,712.00
2015-12-31 87,932.00 2,020.00 9,610.00
2015-09-30 89,174.00 1,172.00 9,341.00
2015-06-30 87,278.00 3,085.00 9,111.00
2015-03-31 83,111.00 1,352.00 8,869.00
2014-12-31 78,104.00 797.00 8,619.00
2014-09-30 73,016.00 374.00 8,088.00
2014-06-30 69,463.00 -125.00 7,990.00
2014-03-31 67,246.00 -994.00 7,925.00
2013-12-31 65,073.00 -1,109.00 7,868.00
2013-09-30 64,019.00 49.00 7,799.00
2013-06-30 62,597.00 -175.00 7,622.00
2013-03-31 63,373.00 -1,027.00 7,707.00
2012-12-31 64,308.00 -804.00 7,785.00
2012-09-30 45,088.00 -1,406.00 5,019.00
2012-06-30 55,045.00 -275.00 6,090.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Norsk Hydro has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Norsk Hydro used its assets less efficiently than the Europe Metals and Mining industry average last year based on Return on Assets.
  • Norsk Hydro's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Norsk Hydro's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Norsk Hydro has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Norsk Hydro's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Norsk Hydro's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Norsk Hydro is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Norsk Hydro's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Norsk Hydro's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Norsk Hydro Company Filings, last reported 2 months ago.

OB:NHY Past Debt and Equity Data
Date (Data in NOK Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 89,395.00 19,472.00 7,373.00
2018-12-31 90,769.00 14,630.00 7,771.00
2018-09-30 87,484.00 14,493.00 8,022.00
2018-06-30 87,162.00 14,346.00 6,818.00
2018-03-31 91,124.00 14,015.00 10,402.00
2017-12-31 92,210.00 17,257.00 13,937.00
2017-09-30 87,901.00 12,142.00 19,838.00
2017-06-30 87,562.00 6,924.00 12,889.00
2017-03-31 90,790.00 6,854.00 12,736.00
2016-12-31 87,639.00 6,680.00 13,105.00
2016-09-30 81,395.00 6,971.00 12,390.00
2016-06-30 83,042.00 7,067.00 11,849.00
2016-03-31 79,748.00 7,488.00 11,425.00
2015-12-31 79,328.00 7,531.00 13,171.00
2015-09-30 76,090.00 7,917.00 11,232.00
2015-06-30 80,397.00 8,696.00 9,382.00
2015-03-31 77,545.00 9,961.00 9,628.00
2014-12-31 79,941.00 11,167.00 11,582.00
2014-09-30 74,599.00 9,857.00 7,790.00
2014-06-30 76,262.00 10,234.00 8,382.00
2014-03-31 75,976.00 10,196.00 9,557.00
2013-12-31 75,264.00 10,206.00 11,073.00
2013-09-30 76,099.00 10,349.00 9,829.00
2013-06-30 76,411.00 9,964.00 8,672.00
2013-03-31 78,755.00 9,569.00 9,982.00
2012-12-31 75,498.00 9,630.00 11,713.00
2012-09-30 75,242.00 11,151.00 11,119.00
2012-06-30 78,096.00 9,353.00 8,977.00
  • Norsk Hydro's level of debt (21.8%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (13.4% vs 21.8% today).
  • Debt is well covered by operating cash flow (29.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 9.1x coverage).
X
Financial health checks
We assess Norsk Hydro's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Norsk Hydro has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Norsk Hydro's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.19%
Current annual income from Norsk Hydro dividends. Estimated to be 4.47% next year.
If you bought NOK2,000 of Norsk Hydro shares you are expected to receive NOK84 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Norsk Hydro's pays a higher dividend yield than the bottom 25% of dividend payers in Norway (2.48%).
  • Norsk Hydro's dividend is below the markets top 25% of dividend payers in Norway (6.49%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OB:NHY Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
Europe Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 62 Stocks 6.1%
Norway Market Average Dividend Yield Market Cap Weighted Average of 110 Stocks 4.5%
Norway Minimum Threshold Dividend Yield 10th Percentile 1.9%
Norway Bottom 25% Dividend Yield 25th Percentile 2.5%
Norway Top 25% Dividend Yield 75th Percentile 6.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OB:NHY Future Dividends Estimate Data
Date (Data in NOK) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 1.83 1.00
2022-12-31 1.29 4.00
2021-12-31 1.41 15.00
2020-12-31 1.31 17.00
2019-12-31 1.25 15.00
OB:NHY Past Annualized Dividends Data
Date (Data in NOK) Dividend per share (annual) Avg. Yield (%)
2019-02-07 1.250 3.654
2018-02-16 1.750 3.817
2017-02-09 1.250 2.344
2016-02-17 1.000 2.792
2015-03-13 1.000 3.088
2015-02-11 1.000 2.279
2014-05-07 0.750 2.025
2013-05-08 0.750 2.799
2012-02-16 0.750 2.779
2011-05-05 0.750 2.370
2010-05-04 0.500 1.305
2009-10-27 0.000 0.000
2009-07-22 0.000 0.000
2009-04-29 0.000 0.000
2009-02-18 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Norsk Hydro has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Norsk Hydro only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Norsk Hydro's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).
X
Income/ dividend checks
We assess Norsk Hydro's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Norsk Hydro afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Norsk Hydro has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Norsk Hydro's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Hilde Aasheim
COMPENSATION NOK7,291,000
AGE 60
TENURE AS CEO 0.1 years
CEO Bio

Mrs. Hilde Merete Aasheim serves as President and Chief executive officer of Norsk Hydro ASA since May 8, 2019. Mrs. Aasheim served as an Executive Vice President of Primary Metals and Member of Corporate Management Board at Norsk Hydro ASA since November 2008 until May 8, 2019 and August 15, 2012 until May 8, 2019 respectively. Mrs. Aasheim served as Executive Vice President of Staffs and Corporate Services of Statoil ASA (also known as StatoilHydro ASA) from October 1, 2007 to January 11, 2008. She served as an Executive Vice President of Leadership and Culture at Norsk Hydro Asa since October 3, 2005. She joined Norsk Hydro ASA in October 2005 and served as its Member of Corporate Management Board since October 1, 2005. From 1986 to 2005 she was employed in Elkem ASA and during this period she held management positions in it, both at staff and line level. Mrs. Aasheim served as Senior Vice President of Silicon Division at Elkem ASA since 2002. She served as an Assistant Head of Silicon Division, Vice-President responsible for personnel and organizational development and Finance Director for ferrosilicon in Norway and Iceland and globally since joining Elkem in 1986. She was member of Elkem's Corporate Management Board. She held various positions at Elkem in the field of finance, human resources and health, safety and environment until 2005. She has also worked for Arthur Andersen & Co. from 1982 to 1986. She served as a Vice Chairman of Yara International ASA since May 2014 and its Director since May 2010. She served as a Director of Veidekke ASA since 1999. She is also a Chartered Accountant. Mrs. Aasheim holds a master's degree in business economics from the Norwegian School of Economics and a state-authorised public accountancy qualification from Norwegian School of Economics and Business Administration (NHH) in Bergen. She studied MBA and B. Commerce.

CEO Compensation
  • Hilde's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Hilde's remuneration is about average for companies of similar size in Norway.
Management Team Tenure

Average tenure and age of the Norsk Hydro management team in years:

4.4
Average Tenure
50.5
Average Age
  • The tenure for the Norsk Hydro management team is about average.
Management Team

Hilde Aasheim

TITLE
President & CEO
COMPENSATION
NOK7M
AGE
60
TENURE
0.1 yrs

Eivind Kallevik

TITLE
Executive VP
COMPENSATION
NOK7M
AGE
51
TENURE
6.3 yrs

Arvid Moss

TITLE
Executive VP of Energy & Corporate Business Development and Member of Corporate Management Board
COMPENSATION
NOK8M
AGE
60
TENURE
10.8 yrs

Kjetil Ebbesberg

TITLE
Member of Corporate Management Board
COMPENSATION
NOK7M
AGE
47
TENURE
4.4 yrs

Inger Sethov

TITLE
Executive VP of Communication & Public Affairs and Member of Corporate Management Board
COMPENSATION
NOK5M
AGE
48
TENURE
4.4 yrs

Anne-Lene Midseim

TITLE
Executive VP of CSR & Compliance
COMPENSATION
NOK5M
AGE
50
TENURE
4.4 yrs

Egil Hogna

TITLE
Executive VP of Extruded Solutions & Member of Corporate Management Board
COMPENSATION
NOK12M
AGE
47
TENURE
1.7 yrs

John Thuestad

TITLE
Executive VP of Bauxite & Alumina and Member of Corporate Management Board
COMPENSATION
NOK9M
AGE
58
TENURE
1 yrs

Svein Brandtzæg

TITLE
COMPENSATION
NOK15M
AGE
61
TENURE
0.1 yrs

Hilde Nordh

TITLE
Executive VP of People & HSE and Acting Member of Corporate Management Board
AGE
49
Board of Directors Tenure

Average tenure and age of the Norsk Hydro board of directors in years:

3.1
Average Tenure
56
Average Age
  • The tenure for the Norsk Hydro board of directors is about average.
Board of Directors

Dag Mejdell

TITLE
Chairperson
COMPENSATION
NOK780K
AGE
61
TENURE
5.1 yrs

Irene Rummelhoff

TITLE
Deputy Chairperson
COMPENSATION
NOK489K
AGE
51
TENURE
3.1 yrs

Finn Jebsen

TITLE
Director
COMPENSATION
NOK554K
AGE
68
TENURE
11.6 yrs

Terje Venold

TITLE
Chairperson of Corporate Assembly
AGE
68
TENURE
4.8 yrs

Susanne Elise Thore

TITLE
Deputy Chairperson of Corporate Assembly
AGE
58

Sten Martinsen

TITLE
Employee Representative Director
COMPENSATION
NOK439K
AGE
56
TENURE
14.4 yrs

Svein Sund

TITLE
Employee Representative Director
COMPENSATION
NOK384K
AGE
56
TENURE
2.1 yrs

Tor Skulstad

TITLE
Board Observer
AGE
51
TENURE
1.7 yrs

Thomas Schulz

TITLE
Director
COMPENSATION
NOK351K
AGE
53
TENURE
3.1 yrs

Marianne Wiinholt

TITLE
Director
COMPENSATION
NOK483K
AGE
53
TENURE
3.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (NOK) Value (NOK)
02. Nov 18 Buy Egil Hogna Individual 02. Nov 18 02. Nov 18 20,000 NOK45.54 NOK910,800
X
Management checks
We assess Norsk Hydro's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Norsk Hydro has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

How Good Is Norsk Hydro ASA (OB:NHY), When It Comes To ROE?

This article is for those who would like to learn about Return On Equity (ROE). … That means that for every NOK1 worth of shareholders' equity, it generated NOK0.11 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Norsk Hydro ASA (OB:NHY) Attractive At This PE Ratio?

While NHY might seem like an attractive stock to buy, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions. … I will break down what the P/E ratio is, how to interpret it and what to watch out for … Breaking down the Price-Earnings ratio

Simply Wall St -

What You Must Know About Norsk Hydro ASA's (OB:NHY) Financial Health

With a market capitalization of øre92.35b, Norsk Hydro ASA (OB:NHY) is a large-cap stock, which is considered by most investors as a safe bet. … Common characteristics for these big stocks are their strong balance sheet and high liquidity, which means there's plenty of stocks available to the public for trading. … In times of low liquidity in the market, these firms won’t be left high and dry.

Simply Wall St -

An Intrinsic Calculation For Norsk Hydro ASA (OB:NHY) Shows It's 36.8% Undervalued

How far off is Norsk Hydro ASA (OB:NHY) from its intrinsic value? … by taking the foreast future cash flows of the company and discounting them back to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

How Should Investors React To Norsk Hydro ASA's (OB:NHY) CEO Pay?

Svein Brandtzæg is the CEO of Norsk Hydro ASA (OB:NHY), which has recently grown to a market capitalization of øre96.36b. … Recognizing whether CEO incentives are aligned with shareholders is a crucial part of investing. … This is because, if incentives are aligned, more value is created for shareholders which directly impacts your returns as an investor.

Simply Wall St -

Is Norsk Hydro ASA (OB:NHY) A Smart Pick For Income Investors?

Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. … In the past 10 years Norsk Hydro ASA (OB:NHY) has returned an average of 2.00% per year to investors in the form of dividend payouts. … Let's take a look at Norsk Hydro in more detail.

Simply Wall St -

How Norsk Hydro ASA (OB:NHY) Can Add Value To Your Portfolio

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook.

Simply Wall St -

How Did Norsk Hydro ASA's (OB:NHY) 10.34% ROE Fare Against The Industry?

and want a simplistic look at the return on Norsk Hydro ASA (OB:NHY) stock. … Norsk Hydro ASA (OB:NHY) performed in line with its aluminum industry on the basis of its ROE – producing a return of 10.34% relative to the peer average of 11.16% over the past 12 months. … Return on Equity (ROE) weighs Norsk Hydro’s profit against the level of its shareholders’ equity.

Simply Wall St -

Norsk Hydro ASA (OB:NHY) Is Trading At A 35% Discount

In this article I am going to calculate the intrinsic value of Norsk Hydro ASA (OB:NHY) by taking the expected future cash flows and discounting them to their present value. … 5-year cash flow estimate 2018 2019 2020 2021 2022 Levered FCF (NOK, Millions) NOK8,351.12 NOK9,474.64 NOK10,555.80 NOK14,424.00 NOK14,833.00 Source Analyst x6 Analyst x12 Analyst x10 Analyst x1 Analyst x1 Present Value Discounted @ 10.4% NOK7,564.08 NOK7,772.95 NOK7,843.79 NOK9,708.05 NOK9,042.47 Present Value of 5-year Cash Flow (PVCF)= NOK41,931 After calculating the present value of future cash flows in the intial 5-year period we need to calculate the Terminal Value, which accounts for all the future cash flows beyond the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = NOK14,833 × (1 + 2%) ÷ (10.4% – 2%) = NOK179,801 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = NOK179,801 / ( 1 + 10.4%)5 = NOK109,610 The total value, or equity value, is then the sum of the present value of the cash flows, which in this case is NOK151,542.

Simply Wall St -

Why Norsk Hydro ASA (OB:NHY) Delivered An Inferior ROE Compared To The Industry

Check out our latest analysis for Norsk Hydro Breaking down Return on Equity Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … For now, let’s just look at the cost of equity number for Norsk Hydro, which is 11.33%. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity OB:NHY Last Perf Apr 9th 18 The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses.

Simply Wall St -

Company Info

Description

Norsk Hydro ASA operates as an integrated aluminum company worldwide. It operates in six segments: Bauxite & Alumina, Primary Metal, Metal Markets, Rolled Products, Extruded Solutions, and Energy. The Bauxite & Alumina segment engages in bauxite mining activities, production of alumina, and related commercial activities, as well as the sale of alumina. The Primary Metal segment is involved in the primary aluminum production, remelting, and casting activities. This segment primarily offers extrusion ingots, foundry alloys, sheet ingots, and standard ingots. The Metal Markets segment sells products from the company’s primary metal plants; operates remelters; and trades in physical and financial metals. The Rolled Products segment operates rolling mills and a primary metal plant. This segment primarily offers aluminum foils, strips, sheets, and lithographic plates for application in the packaging, automotive, and transport industries, as well as for offset printing plates. The Extruded Solutions segment offers extrusion profiles, building systems, and precision tubing products. The Energy segment owns and operates 26 hydroelectric power plants with an installed capacity of approximately 2,000 MW in Norway. The company also serves the electronics, building and construction, consumer goods, general engineering, printing, HVACR, and solar product industries. Norsk Hydro ASA was founded in 1905 and is headquartered in Oslo, Norway.

Details
Name: Norsk Hydro ASA
NHY
Exchange: OB
Founded: 1905
NOK61,042,693,255
2,046,352,439
Website: http://www.hydro.com
Address: Norsk Hydro ASA
Drammensveien 260,
Vækerø,
Oslo,
Oslo, 0240,
Norway
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
OB NHY Ordinary Shares Oslo Bors NO NOK 02. Jan 1992
OTCPK NHYK.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB NOH1 Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
LSE 0Q11 Ordinary Shares London Stock Exchange GB NOK 02. Jan 1992
SWX NHY Ordinary Shares SIX Swiss Exchange CH CHF 02. Jan 1992
BATS-CHIXE NHYO Ordinary Shares BATS 'Chi-X Europe' GB NOK 02. Jan 1992
OTCPK NHYD.Y ADR-EACH CNV INTO 1 ORD NOK1.098 Pink Sheets LLC US USD 10. Jan 1986
DB NOHA ADR-EACH CNV INTO 1 ORD NOK1.098 Deutsche Boerse AG DE EUR 10. Jan 1986
Number of employees
Current staff
Staff numbers
35,000
Norsk Hydro employees.
Industry
Aluminum
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/26 20:50
End of day share price update: 2019/06/26 00:00
Last estimates confirmation: 2019/06/26
Last earnings filing: 2019/06/05
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.