OB:NHY

Stock Analysis Report

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Executive Summary

Norsk Hydro ASA operates as an integrated aluminum company worldwide. More Details


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has Norsk Hydro's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NHY has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.8%

NHY

-0.3%

NO Metals and Mining

-0.3%

NO Market


1 Year Return

-21.8%

NHY

10.2%

NO Metals and Mining

-6.4%

NO Market

Return vs Industry: NHY underperformed the Norwegian Metals and Mining industry which returned 11.1% over the past year.

Return vs Market: NHY underperformed the Norwegian Market which returned -6.3% over the past year.


Shareholder returns

NHYIndustryMarket
7 Day0.8%-0.3%-0.3%
30 Day-3.4%-2.9%-0.05%
90 Day-7.6%3.3%2.1%
1 Year-21.8%-21.8%14.6%10.2%-3.2%-6.4%
3 Year-53.4%-56.7%8.1%-6.3%2.9%-8.7%
5 Year-3.9%-15.5%104.9%62.7%43.9%14.5%

Price Volatility Vs. Market

How volatile is Norsk Hydro's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Norsk Hydro undervalued compared to its fair value and its price relative to the market?

38.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NHY (NOK26.2) is trading below our estimate of fair value (NOK42.67)

Significantly Below Fair Value: NHY is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NHY is unprofitable, so we can't compare its PE Ratio to the XE Metals and Mining industry average.

PE vs Market: NHY is unprofitable, so we can't compare its PE Ratio to the Norwegian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NHY's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NHY is good value based on its PB Ratio (0.7x) compared to the XE Metals and Mining industry average (1.3x).


Next Steps

Future Growth

How is Norsk Hydro forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

82.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NHY is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: NHY is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NHY's is expected to become profitable in the next 3 years.

Revenue vs Market: NHY's revenue (4.4% per year) is forecast to grow slower than the Norwegian market (5.5% per year).

High Growth Revenue: NHY's revenue (4.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NHY's Return on Equity is forecast to be low in 3 years time (6.1%).


Next Steps

Past Performance

How has Norsk Hydro performed over the past 5 years?

-24.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NHY is currently unprofitable.

Growing Profit Margin: NHY is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NHY is unprofitable, and losses have increased over the past 5 years at a rate of 24.4% per year.

Accelerating Growth: Unable to compare NHY's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NHY is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (-21.3%).


Return on Equity

High ROE: NHY has a negative Return on Equity (-7.04%), as it is currently unprofitable.


Next Steps

Financial Health

How is Norsk Hydro's financial position?


Financial Position Analysis

Short Term Liabilities: NHY's short term assets (NOK60.5B) exceed its short term liabilities (NOK27.5B).

Long Term Liabilities: NHY's short term assets (NOK60.5B) exceed its long term liabilities (NOK59.8B).


Debt to Equity History and Analysis

Debt Level: NHY's debt to equity ratio (37.9%) is considered satisfactory.

Reducing Debt: NHY's debt to equity ratio has increased from 10.8% to 37.9% over the past 5 years.

Debt Coverage: NHY's debt is well covered by operating cash flow (42.5%).

Interest Coverage: NHY is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

4.77%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NHY's dividend (4.77%) is higher than the bottom 25% of dividend payers in the Norwegian market (2.48%).

High Dividend: NHY's dividend (4.77%) is low compared to the top 25% of dividend payers in the Norwegian market (6.61%).


Stability and Growth of Payments

Stable Dividend: NHY's dividend payments have been volatile in the past 10 years.

Growing Dividend: NHY's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: NHY is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: NHY's dividends in 3 years are forecast to be well covered by earnings (48.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Hilde Aasheim (62 yo)

1.42yrs

Tenure

kr1,050,000

Compensation

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 ...


CEO Compensation Analysis

Compensation vs Market: Hilde's total compensation ($USD112.85K) is below average for companies of similar size in the Norwegian market ($USD1.00M).

Compensation vs Earnings: Hilde's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Hilde Aasheim
President & CEO1.42yrskr1.05m0.0059%
NOK 3.2m
Pal Kildemo
Executive VP of Finance1.17yrskr4.59m0.00064%
NOK 347.1k
Arvid Moss
Interim Executive VP12.17yrskr7.99m0.0084%
NOK 4.6m
Inger Sethov
Executive VP of Communication & Public Affairs and Member of Corporate Management Board5.75yrskr4.61m0.0019%
NOK 1.0m
Eivind Kallevik
Head of Primary Metal & Member of Corporate Management Board7.67yrskr6.91m0.0036%
NOK 1.9m
Anne-Lene Midseim
Executive VP of CSR5.75yrskr4.89m0.0016%
NOK 895.0k
Egil Hogna
Executive VP of Extruded Solutions & Member of Corporate Management Board3yrskr9.46m0.0031%
NOK 1.7m
John Thuestad
Executive VP of Bauxite & Alumina and Member of Corporate Management Board2.33yrskr11.59m0.0028%
NOK 1.5m
Hilde Nordh
Executive VP of People & HSE and Member of Corporate Management Board1.75yrskr4.61m0.0012%
NOK 650.9k
Einar Glomnes
Executive VP of Rolled Products & Member of the Corporate Management Board1.42yrskr6.93m0.00086%
NOK 466.5k
Peik Norenberg
Head of Corporate Financeno datano datano data
Hans Vatne
Chief Technology Officerno datano datano data

2.7yrs

Average Tenure

52yo

Average Age

Experienced Management: NHY's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dag Mejdell
Independent Chairperson6.42yrskr807.00k0.0022%
NOK 1.2m
Peter Gerald Kukielski
Independent Director1.42yrskr326.00kno data
Liselott Kilaas
Independent Director2.42yrskr498.00kno data
Terje Venold
Chairperson of Corporate Assembly6.08yrsno datano data
Sten Martinsen
Employee Representative Director15.75yrskr453.00k0.00034%
NOK 184.4k
Susanne Elise Thore
Deputy Chairperson of Corporate Assemblyno datano datano data
Tor Skulstad
Board Observer3yrsno data0.000060%
NOK 32.5k
Marianne Wiinholt
Independent Director4.42yrskr613.00kno data
Thomas Schulz
Independent Director4.42yrskr477.00kno data
Irene Rummelhoff
Independent Deputy Chairperson4.42yrskr504.00k0.00024%
NOK 130.2k
Arve Baade
Employee Representative Director2yrskr362.00k0.00025%
NOK 135.6k
Rune Bjerke
Director0.33yrno datano data

4.4yrs

Average Tenure

58yo

Average Age

Experienced Board: NHY's board of directors are considered experienced (4.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Norsk Hydro ASA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Norsk Hydro ASA
  • Ticker: NHY
  • Exchange: OB
  • Founded: 1905
  • Industry: Aluminum
  • Sector: Materials
  • Market Cap: kr54.240b
  • Shares outstanding: 2.05b
  • Website: https://www.hydro.com

Number of Employees


Location

  • Norsk Hydro ASA
  • Drammensveien 260
  • Vækerø
  • Oslo
  • Oslo
  • 240
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NHYD.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJan 1986
NOHADB (Deutsche Boerse AG)SPONSORED ADRDEEURJan 1986
NHYK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
NHYOB (Oslo Bors)YesOrdinary SharesNONOKJan 1992
0Q11LSE (London Stock Exchange)YesOrdinary SharesGBNOKJan 1992
NOH1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
NHYSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJan 1992
NHYOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKJan 1992

Biography

Norsk Hydro ASA operates as an integrated aluminum company worldwide. It operates through six segments: Bauxite & Alumina, Primary Metal, Metal Markets, Rolled Products, Extruded Solutions, and Energy. The ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/19 20:47
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.