Norsk Hydro ASA
Norsk Hydro ASA Fundamental Analysis
Norsk Hydro ASA (NHYDY) shows weak financial fundamentals with a PE ratio of 31.26, profit margin of 3.23%, and ROE of 6.67%. The company generates $208.3B in annual revenue with moderate year-over-year growth of 6.01%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NHYDY's fundamental strength across five key dimensions:
Efficiency Score
WeakNHYDY struggles to generate sufficient returns from assets.
Valuation Score
ModerateNHYDY shows balanced valuation metrics.
Growth Score
ExcellentNHYDY delivers strong and consistent growth momentum.
Financial Health Score
ExcellentNHYDY maintains a strong and stable balance sheet.
Profitability Score
WeakNHYDY struggles to sustain strong margins.
Key Financial Metrics
Is NHYDY Expensive or Cheap?
P/E Ratio
NHYDY trades at 31.26 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NHYDY's PEG of -0.09 indicates potential undervaluation.
Price to Book
The market values Norsk Hydro ASA at 2.10 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.89 times EBITDA. This is generally considered low.
How Well Does NHYDY Make Money?
Net Profit Margin
For every $100 in sales, Norsk Hydro ASA keeps $3.23 as profit after all expenses.
Operating Margin
Core operations generate 17.54 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.67 in profit for every $100 of shareholder equity.
ROA
Norsk Hydro ASA generates $3.23 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Norsk Hydro ASA produces operating cash flow of $23.35B, showing steady but balanced cash generation.
Free Cash Flow
Norsk Hydro ASA produces free cash flow of $11.75B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $5.97 in free cash annually.
FCF Yield
NHYDY converts 5.59% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.26
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.10
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.01
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.37
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.73
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.23
vs 25 benchmark
How NHYDY Stacks Against Its Sector Peers
| Metric | NHYDY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.26 | 24.71 | Worse (Expensive) |
| ROE | 6.67% | 887.00% | Weak |
| Net Margin | 3.23% | -99745.00% (disorted) | Weak |
| Debt/Equity | 0.37 | 0.50 | Strong (Low Leverage) |
| Current Ratio | 1.73 | 6.80 | Neutral |
| ROA | 3.23% | -6232.00% (disorted) | Weak |
NHYDY outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Norsk Hydro ASA's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
39.32%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
350.43%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
25.38%
Industry Style: Cyclical, Commodity, Value
High Growth