Norsk Hydro ASA is close to a major resistance level, whereby the breach of this level could be considered as a buy signal. This reflects our preferred scenario in light of the stock's current technical chart pattern.
Summary
● The company has a good ESG score relative to its sector, according to Refinitiv.
Strengths
● The earnings growth currently anticipated by analysts for the coming years is particularly strong.
● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.
● This company will be of major interest to investors in search of a high dividend stock.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● Consensus analysts have strongly revised their opinion of the company over the past 12 months.
● Historically, the company has been releasing figures that are above expectations.
Weaknesses
● According to forecast, a sluggish sales growth is expected for the next fiscal years.
● The company is highly valued given the cash flows generated by its activity.
● For the last few months, analysts have been revising downwards their earnings forecast.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
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Norsk Hydro ASA is one of the world's leading producers of aluminium and energy. Net sales break down by activity as follows:
- manufacturing of aluminium products (44.4%): primarily extruded aluminium profiles, rolled aluminium products, tubes, sheet metal, construction metals, automotive components, etc.;
- sale and trading of aluminium (35.3%);
- production and refining of aluminium (18.5%): bauxite and alumina, raw aluminium and aluminium foundry products;
- production and distribution of energy (1.8%): electricity (No. 2 producer in Norway) and hydroelectric power.
Net are distributed geographically as follows: Norway (3.9%), Germany (9.9%), France (4%), Poland (4%), Spain (3.9%), Italy (3%), European Union (11.5%), Switzerland (7.7%), the United Kingdom (3.2%), Turkey (1.2%), Europe (0.3%), the United States (20.4%), Brazil (4.8%), Canada (4.1%), the Americas (1.5%), Japan (3.5%), China (2.7%), Asia and Middle East (9.1%) and other (1.3%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Global Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Global Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite), and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of the rankings based on the following ratings: Capital Efficiency (Composite), Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
