Rankings Commodities & uranium Norsk Hydro

Norsk Hydro

Commodities & uranium · NorwayRank 195 of 829Prices 3 Nov 2026Model 1.470+ zone

In the 70+ zone: a score above 70 with more than 20% upside to the median analyst target.

Biggest deductions

  • Multiples vs own history−5
  • Temporary aluminium price−5
  • Margin−4

Strengths

  • Long-term contracts+2
  • Recycling+1

How the score is built

From 100 to 76, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.

100Start
76Score

Hover or select a step to see what drove it. Steps with findings open them below.

Key numbers

As of 3 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.

Price
65.92 NOK
Median analyst target
80.00 NOK
Upside to median
+21.4%
Analysts
17
Target range
55.00 – 118.00 NOK
52-week change
−4%
P/E (trailing)
10.0
Forward P/E
9.6
PEG
0.74

Findings

Every deduction and every plus, with its source. Open a step to read them.

Business

Is the company getting stronger, not just bigger? · 5 findings
−13 of −30
  • Margin
    The net margin is only 4.8% (TTM) and was 1.9–3.2% in 2023–2025; pre-tax profit is 7.4% of revenue. Adjusted EBITDA of NOK 8.9bn in Q2 equals about 17% of quarterly revenue of just over NOK 50bn.
    −4
  • ROIC
    Hydro's own adjusted RoaCE (12 months) is 10.9% – even with rising aluminium prices. Stockanalysis' ROIC of 22.6% overstates the return.
    −3
  • Quality of growth
    Revenue has been flat at around NOK 194–208bn since 2022. The Q2 lift comes from Aluminium Metal (EBITDA +165% on a higher aluminium price), while Bauxite & Alumina fell 66%, Energy 53% and Metal Markets 88%. That is price, not a stronger company.
    −4
  • Moat
    Hydro is a price taker on LME aluminium but has a relative advantage: a cost position in the 16th percentile and low-carbon hydropower-based aluminium that earns product premiums.
    −1
  • Capital allocation
    Net debt rose to NOK 16.3bn from 12.9bn in the quarter. In 2023 NOK 11.5bn of dividends was paid vs FCF of 8.6bn; the dividend swings sharply with the cycle (5.65 → 2.25 → 3.00 NOK).
    −1

Price

Today's multiples against the company's own history and its peers. · 1 finding
−5 of −35
  • Multiples vs own history
    EV/EBITDA 3.55 is at the top of the 2.69–3.58 range (2021–2025), and P/B 1.46 in the upper part of 1.15–1.61. The forward P/E of 8.6 is low vs 8.3–15.4 but rests on a peak-price estimate; the trailing P/E is 16.7. The FCF yield is 4.5% (TTM).
    −5

Cracks

Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 3 findings
−10 of −35
  • Temporary aluminium price
    The aluminium price has been lifted by supply disruptions in the Middle East (including EGA's Al Taweelah smelter). The price fell when the supply outlook improved, and the share price has fallen from NOK 120 to about 82. Analysts expect EPS −5% in 2027.
    −5
  • Alunorte and gas supply
    Alunorte, the world's largest alumina refinery outside China, had to cut to 50% of capacity in August because of interrupted gas supply from the New Fortress company CELBA. The Q3 impact is USD 75–100m, and there is dependence on one gas supplier.
    −3
  • Hydrology and energy
    Nordic reservoirs were at 61.9% vs a normal 67.9%. Energy EBITDA fell 53% because of lower production and losses on price-area differences, and the stronger NOK also weighed.
    −2

Plus

Only documented strengths. · 2 findings
+3 of +15
  • Long-term contracts
    A five-year supply agreement with Nexans for 85,000 t of low-carbon wire rod, a 10-year power deal with Eviny (0.5 TWh/year 2031–2040) and the restart of 75,000 t of capacity at Slovalco.
    +2
  • Recycling
    Recycling delivered over NOK 900m of adjusted EBITDA in Q2 and is a growing, less price-sensitive earnings source.
    +1

Caveats

What the score does not capture, or where the data is weak.
stockanalysis shows an operating margin of 20% and ROIC of 22.6%, but these are distorted: profit before tax is only 7.4% of revenue, and Hydro's own adjusted RoaCE (12 months) is 10.9%. The company's figures are used. Forward P/E 8.6 rests on EPS of 8.70 in 2026 at a high aluminium price. The price has fallen from the 52-week high of 120.40 to about 82. Peers (Alcoa, Century, Rio Tinto Aluminium) and US aluminium tariffs (Section 232) have not been examined. The Investor Day on 25 Nov. 2026 may change the strategy.

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