Norsk Hydro Asa reports 59.5% CAPEX growth and 12.6% Revenue growth
17 Feb 2016 • About Norsk Hydro Asa (
$NHY) • By InTwits
Norsk Hydro Asa reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Norsk Hydro Asa has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.9%. At the same time it's a lot of higher than industry average of 3.2%.
- CAPEX is quite volatile: 6,387 in 2015, 4,798 in 2014, 4,804 in 2013, 6,514 in 2012, 12,392 in 2011
- The company has business model with low profitability: ROIC is at 8.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Norsk Hydro Asa ($NHY) key annual financial indicators
| mln. NOK | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 71,500 | 64,181 | 64,877 | 77,907 | 87,694 | 12.6% |
| EBITDA | 14,764 | 6,565 | 6,447 | 9,823 | 12,771 | 30.0% |
| Net Income | 6,705 | -1,318 | -920 | 797 | 2,020 | 153.5% |
Balance Sheet
|
|---|
| Cash | 8,365 | 7,034 | 8,412 | 9,253 | 6,917 | -25.2% |
| Short Term Debt | 4,248 | 5,956 | 6,220 | 6,040 | 3,562 | -41.0% |
| Long Term Debt | 5,666 | 3,674 | 3,986 | 5,127 | 3,969 | -22.6% |
Cash flow
|
|---|
| Capex | 3,386 | 3,256 | 2,867 | 3,294 | 5,254 | 59.5% |
Ratios
|
|---|
| Revenue growth | -5.6% | -10.2% | 1.1% | 20.1% | 12.6% | |
| EBITDA growth | 119.0% | -55.5% | -1.8% | 52.4% | 30.0% | |
| EBITDA Margin | 20.6% | 10.2% | 9.9% | 12.6% | 14.6% | 2.0% |
| Net Income Margin | 9.4% | -2.1% | -1.4% | 1.0% | 2.3% | 1.3% |
| CAPEX, % of revenue | 4.7% | 5.1% | 4.4% | 4.2% | 6.0% | 1.8% |
| ROIC | 13.1% | 1.1% | 2.2% | 5.9% | 8.7% | 2.8% |
| ROE | 10.0% | -1.8% | -1.3% | 1.1% | 2.7% | 1.6% |
| Net Debt/EBITDA | 0.1x | 0.4x | 0.3x | 0.2x | 0.0x | -0.1x |
Revenue and profitability
Norsk Hydro Asa's Revenue surged on 12.6% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 7.1 pp from 9.2% to 2.1% in 2015.
Net Income marign increased slightly on 1.3 pp from 1.0% to 2.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 6.0%. CAPEX/Revenue increased slightly on 0.92 pp from 5.1% in 2012 to 6.0% in 2015. It's average CAPEX/Revenue for the last three years was 4.9%.
Return on investment
The company operates at low ROIC (8.69%) and ROE (2.73%). ROIC increased on 2.8 pp from 5.9% to 8.7% in 2015. ROE increased slightly on 1.6 pp from 1.1% to 2.7% in 2015.
Leverage (Debt)
Debt level is 0.0x Net Debt / EBITDA and 0.6x Debt / EBITDA. Net Debt / EBITDA dropped on 0.1x from 0.2x to 0.048x in 2015. Debt dropped on 32.6% in 2015 while cash dropped on 25.2% in 2015.
Appendix 1: Peers in Industrial Metals & Mining
Below we provide Norsk Hydro Asa benchmarking against other companies in Industrial Metals & Mining industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Afarak Group ($AFRK) | | -19.2% | 5.4% | 27.4% | 8.7% |
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | 8.2% | 2.4% | -0.1% | 26.4% | |
| Aluminium Bahrain Bsc ($ALBH) | 17.6% | -15.8% | 0.8% | 9.7% | |
| Ambrian ($AMBR) | 28,056.2% | -26.8% | 44.6% | 6.8% | |
| Posco ($PIDD) | | -7.7% | -2.7% | 5.2% | -10.6% |
| |
|---|
| Median (14 companies) | 17.6% | -4.4% | -1.4% | 0.7% | -9.8% |
|---|
| Norsk Hydro Asa ($NHY) | | -10.2% | 1.1% | 20.1% | 12.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mmc Norilsk Nickel ($MNOD) | 59.0% | 49.1% | 43.4% | 52.2% | |
| Severstal PJSC ($SVST) | 31.0% | 23.5% | 29.9% | 34.4% | 40.4% |
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | 22.5% | 17.7% | 15.1% | 28.6% | |
| Novolipetsk Iron And Steel Corp ($NLMK) | 28.6% | 23.8% | 19.4% | 28.3% | |
| First Quantum Minerals ($FQM) | 50.6% | 37.3% | 31.9% | 28.2% | |
| |
|---|
| Median (14 companies) | 21.4% | 15.5% | 15.0% | 18.7% | 21.2% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mmc Norilsk Nickel ($MNOD) | 49.5% | 38.6% | 29.2% | 46.8% | |
| First Quantum Minerals ($FQM) | 47.7% | 80.0% | 38.1% | 39.9% | |
| Severstal PJSC ($SVST) | 22.5% | 14.9% | 19.3% | 26.4% | 32.4% |
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | 17.1% | 12.7% | 5.7% | 25.3% | |
| Novolipetsk Iron And Steel Corp ($NLMK) | 19.2% | 15.6% | 13.8% | 21.8% | |
| |
|---|
| Median (15 companies) | 15.3% | 13.3% | 13.8% | 13.0% | 19.0% |
|---|
| Norsk Hydro Asa ($NHY) | 20.6% | 10.2% | 9.9% | 12.6% | 14.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Base Resources Ltd ($BSE) | | | | 401.9% | 6.3% |
| First Quantum Minerals ($FQM) | 40.6% | 46.5% | 73.2% | 81.7% | |
| Mmc Norilsk Nickel ($MNOD) | 15.6% | 22.3% | 17.1% | 10.8% | |
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | 9.0% | 7.0% | 7.9% | 9.9% | |
| Vimetco Nv ($VICO) | | | | 8.8% | |
| |
|---|
| Median (15 companies) | 7.7% | 7.0% | 7.7% | 6.4% | 5.2% |
|---|
| Norsk Hydro Asa ($NHY) | 4.7% | 5.1% | 4.4% | 4.2% | 6.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Zibao Metals Recycling Hldgs Ltd ($ZBO) | | 41.7% | 56.6% | 55.8% | 26.6% |
| Mmc Norilsk Nickel ($MNOD) | 32.4% | 21.8% | 14.2% | 34.1% | |
| Cheliabinsk Elektrolit Zink Plant ($CHZN) | 13.6% | 6.2% | -2.7% | 25.6% | |
| Severstal PJSC ($SVST) | 21.3% | 10.3% | 9.6% | 17.7% | 30.3% |
| Novolipetsk Iron And Steel Corp ($NLMK) | 11.8% | 7.2% | 4.1% | 12.0% | |
| |
|---|
| Median (15 companies) | 11.0% | 6.2% | 4.9% | 9.1% | 11.7% |
|---|
| Norsk Hydro Asa ($NHY) | 13.1% | 1.1% | 2.2% | 5.9% | 8.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Ambrian ($AMBR) | 3,395.4x | | 42.6x | 176.1x | |
| Ezz Steel ($AEZD) | 3.4x | 4.8x | 3.6x | 19.4x | |
| Vimetco Nv ($VICO) | 5.4x | 7.7x | | 10.9x | |
| First Quantum Minerals ($FQM) | -0.3x | 0.0x | 2.5x | 4.0x | |
| OAO TMK ($TMKS) | 3.5x | 3.6x | 3.9x | 3.8x | |
| |
|---|
| Median (14 companies) | 3.0x | 2.0x | 2.1x | 1.2x | 0.6x |
|---|
| Norsk Hydro Asa ($NHY) | 0.1x | 0.4x | 0.3x | 0.2x | 0.0x |
