Fact based stock research
Norsk Hydro (OB:NHY)
NO0005052605
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Norsk Hydro stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 74 (better than 74% compared with investment alternatives), Norsk Hydro (Aluminum, Norway) shares have above-average financial characteristics compared with similar stocks. Shares of Norsk Hydro are a good value (attractively priced) with a consolidated Value Rank of 60 (better than 60% of alternatives), show above-average growth (Growth Rank of 80) but are riskily financed (Safety Rank of 33), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 74, is a buy recommendation based on Norsk Hydro's financial characteristics. As the company Norsk Hydro's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 60) and above-average growth (Obermatt Growth Rank of 80), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 33) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | Norway |
| Industry | Aluminum |
| Index | Dividends Europe, Human Rights, OBX Index |
| Size class | XX-Large |
This stock has achievements: Insight 2018-10-25, Top 10 Stock.
28-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Norsk Hydro
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 71 |
|
63 |
|
47 |
|
60 |
|
| GROWTH | ||||||||
| GROWTH | 61 |
|
100 |
|
33 |
|
80 |
|
| SAFETY | ||||||||
| SAFETY | 67 |
|
24 |
|
47 |
|
33 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
18 |
|
17 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
47 |
|
12 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 74 (better than 74% compared with investment alternatives), Norsk Hydro (Aluminum, Norway) shares have above-average financial characteristics compared with similar stocks. Shares of Norsk Hydro are a good value (attractively priced) with a consolidated Value Rank of 60 (better than 60% of alternatives), show above-average growth (Growth Rank of 80) but are riskily financed (Safety Rank of 33), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 74, is a buy recommendation based on Norsk Hydro's financial characteristics. As the company Norsk Hydro's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 60) and above-average growth (Obermatt Growth Rank of 80), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 33) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 71 |
|
63 |
|
47 |
|
60 |
|
| GROWTH | ||||||||
| GROWTH | 61 |
|
100 |
|
33 |
|
80 |
|
| SAFETY | ||||||||
| SAFETY | 67 |
|
24 |
|
47 |
|
33 |
|
| COMBINED | ||||||||
| COMBINED | 71 |
|
74 |
|
26 |
|
74 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 60 (better than 60% compared with alternatives), Norsk Hydro shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for Norsk Hydro. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 88% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 48 which means that the stock price compared with what market professionals expect for future profits is higher than 52% of comparable companies, indicating a low value concerning Norsk Hydro's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 48 which means that the stock price compared with what market professionals expect for future profit levels is higher than 52% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 41 is also low. Compared with invested capital, the stock price is higher than for 59% of comparable investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 60, is a buy recommendation based on Norsk Hydro's stock price compared with the company's operational size and dividend yields. Should dividend investors pick Norsk Hydro? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose Norsk Hydro only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 71 |
|
54 |
|
55 |
|
48 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 59 |
|
60 |
|
41 |
|
48 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 41 |
|
56 |
|
50 |
|
41 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 63 |
|
83 |
|
87 |
|
88 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 71 |
|
63 |
|
47 |
|
60 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 80 (better than 80% compared with alternatives) for 2024, Norsk Hydro shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Norsk Hydro. Profit Growth has a rank of 77 which means that currently professionals expect the company to grow its profits more than 77% of its competitors. The same is valid for capital growth and stock returns. Capital Growth has a rank of 68, and Stock Returns has a rank of 80 which means that the stock returns have recently been above 80% of alternative investments. Only revenue growth is low with a Sales Growth has a rank of 40 (60% of its competitors are better). ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 80, is a buy recommendation for growth and momentum investors. The many positive growth indicators indicate a positive growth momentum with only low revenue growth. That can also be attributed to divestments or the sale of unprofitable businesses. If that is the reason, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 11 |
|
88 |
|
41 |
|
40 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 50 |
|
86 |
|
29 |
|
77 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
86 |
|
27 |
|
68 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 96 |
|
89 |
|
59 |
|
80 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 61 |
|
100 |
|
33 |
|
80 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 33 (better than 33% compared with alternatives), the company Norsk Hydro has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Norsk Hydro is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Norsk Hydro and the other two below average. Leverage is at a rank of 51 meaning the company has a below-average debt-to-equity ratio. It has less debt than 51% of its competitors.Refinancing is at a rank of 39, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 61% of its competitors. Liquidity is at a rank of 45, meaning that the company generates less profit to service its debt than 55% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 33 (worse than 67% compared with alternatives), Norsk Hydro has a financing structure that is riskier than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of Norsk Hydro are on the safer side. Investors may have a short-term debt challenge and liquidity issues with Norsk Hydro and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 45 |
|
54 |
|
49 |
|
51 |
|
| REFINANCING | ||||||||
| REFINANCING | 51 |
|
55 |
|
50 |
|
39 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 70 |
|
10 |
|
65 |
|
45 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 67 |
|
24 |
|
47 |
|
33 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
43 |
|
20 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
30 |
|
25 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
38 |
|
63 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
46 |
|
43 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
18 |
|
17 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Norsk Hydro from November 28, 2024.
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