Norsk Hydro NHY.OL
Norsk Hydro is a Norwegian integrated aluminum and energy company, operating from bauxite extraction and alumina refining to primary aluminum production and recycling, with a hydroelectric power business that supplies its operations. Norsk Hydro trades at an attractive valuation (P/E 16.5, EV/EBITDA 3.56) with solid financial health (ND/EBITDA 0.32), but the 178.6% earnings growth is unsustainable and the production cut at Alunorte adds near-term pressure.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Norsk Hydro is a Norwegian integrated aluminum and energy company, operating from bauxite extraction and alumina refining to primary aluminum production and recycling, with a hydroelectric power business that supplies its operations. Norsk Hydro trades at an attractive valuation (P/E 16.5, EV/EBITDA 3.56) with solid financial health (ND/EBITDA 0.32), but the 178.6% earnings growth is unsustainable and the production cut at Alunorte adds near-term pressure.
Score by category
| Category | Score |
|---|---|
| Financial health | 8.2 |
| Quality / Moat | 6.7 |
| Valuation | 8.4 |
| Growth | 7.2 |
| Dividend | 7.5 |
| Momentum | 7.8 |
| Risk & Context | 7.4 |
OVERALL SCORE: 7.6/10
Context and risks
The surge in crude oil and geopolitical tensions with Iran raise energy costs, a key input for aluminum production. Although Hydro has its own hydroelectric generation, the gas disruption at Alunorte (Brazil) exposes part of its supply chain to energy price volatility.
News considered in the analysis
- Norsk Hydro (OB:NHY) Cuts Alunorte Output As Gas Disruption Raises Supply Fears — El recorte de producción en Alunorte por la disrupción del gas reduce la oferta y puede presionar los márgenes a corto plazo, aunque también podría sostener los precios del aluminio.
- Norsk Hydro (OB:NHY) Cuts Alunorte Output, Is It Still 33% Undervalued? — La noticia de recorte de producción se repite, pero el análisis de valoración sugiere que el mercado ya ha descontado parte del impacto.
- Norsk Hydro (OB:NHY) Stock Looks Like A Bargain Even After A 101% Run — El artículo de Simply Wall St. sugiere que la acción sigue infravalorada a pesar de la fuerte subida, lo que podría atraer a inversores de valor.
- Teck Resources Ltd (TECK) Soars to 52-Week High, Time to Cash Out? — Noticia sobre un competidor (Teck Resources) sin impacto directo en Norsk Hydro.
- NHYDY or BHP: Which Is the Better Value Stock Right Now? — Comparación genérica entre dos valores sin información nueva sobre Norsk Hydro.
Verdict: Hold; valuation is reasonable but growth will normalize and operational risks at Alunorte warrant caution.
Main risk: The main risk is dependence on cyclical aluminum and energy prices; a normalization of prices or further disruption at Alunorte could compress margins.
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