Norsk Hydro ASANHYDY -1.43%82 Operating Margin % is 18.07% as of Mar. 2026, which is 5% below its 10-year median of 19.11. GuruFocus rates NHYDY with a GF Score™ of 82/100 and a GF Value™ of $7.33 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 841 Metals & Mining companies, Norsk Hydro ASA ranks better than 67.3% on this metric.
Norsk Hydro ASA (OTCPK:NHYDY) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Norsk Hydro ASA Operating Margin % Related Terms
Norsk Hydro ASA Operating Margin % Historical Data
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The historical data trend for Norsk Hydro ASA's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NHYDY vs AA, CENX, CSTM: Operating Margin % Comparison
For the Aluminum subindustry, Norsk Hydro ASA's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Norsk Hydro ASA Operating Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Norsk Hydro ASA's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Norsk Hydro ASA's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Norsk Hydro ASA's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Norsk Hydro ASA (NHYDY) has a Operating Margin % of 18.07% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Norsk Hydro ASA and its competitors. This is near median its historical median of 19.11. Over the past decade, Norsk Hydro ASA's Operating Margin % has ranged from 12.80 to 24.18. According to the industry distribution chart, Norsk Hydro ASA ranks #275 out of 841 companies in the Metals & Mining industry, placing it in the top 32.7%.
Is Norsk Hydro ASA's Operating Margin % too high?
Norsk Hydro ASA's current Operating Margin % of 18.07% is near median its 10-year median of 19.11. Over the past 10 years, this metric has ranged from a low of 12.80 to a high of 24.18. The Metals & Mining industry median Operating Margin % is 5.79. Norsk Hydro ASA's value of 18.07% is 212.1% above this industry median. Based on the distribution chart, Norsk Hydro ASA ranks #275 out of 841 companies in the Metals & Mining industry, which is above the industry midpoint. Overall, Norsk Hydro ASA has a GF Score™ of 82/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Norsk Hydro ASA's Operating Margin % compare to AA and CENX?
According to the Metals & Mining industry distribution chart, Norsk Hydro ASA ranks #275 out of 841 companies for Operating Margin %. This puts Norsk Hydro ASA in the upper half of its industry. The industry median Operating Margin % is 5.79. Norsk Hydro ASA's value of 18.07% is 212.1% above this benchmark. Historically, Norsk Hydro ASA's own Operating Margin % has ranged from 12.80 to 24.18 over the past decade. While the company's 10-year median is 19.11 vs. the industry median of 5.79, Norsk Hydro ASA has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Metals & Mining company?
The median Operating Margin % among Metals & Mining companies is 5.79, based on 841 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Norsk Hydro ASA's current Operating Margin % of 18.07% is 212.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Norsk Hydro ASA and its competitors. For the Metals & Mining industry, the median Operating Margin % is 5.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Norsk Hydro ASA's current Operating Margin % is 18.07%, which is near median its own 10-year median of 19.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Norsk Hydro ASA stock overvalued right now?
Based on GuruFocus' analysis, Norsk Hydro ASA (NHYDY) is currently considered Modestly Overvalued. The stock's GF Value™ is $7.33, compared to a current price of $8.97 — trading 22.4% above its estimated fair value. The current Operating Margin % is 18.07%, which is near median its 10-year median of 19.11 and 212.1% above the Metals & Mining industry median of 5.79. Norsk Hydro ASA's overall GF Score™ is 82/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Norsk Hydro ASA (NHYDY), the current Operating Margin % is 18.07% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Norsk Hydro ASA (NHYDY) Overvalued in 2026?
Based on GuruFocus' analysis, Norsk Hydro ASA stock appears to be overvalued.
The current stock price of $8.97 is trading 22.4% above its estimated GF Value™ of $7.33.
GuruFocus considers Norsk Hydro ASA to be Modestly Overvalued.
Key valuation signals for NHYDY:
Operating Margin %: 18.07% (near median its 10-year median of 19.11)
GF Value™: $7.33 vs. price of $8.97 (22.4% above fair value)
Industry Position: 212.1% above the Metals & Mining median (#275 of 841)
No single metric tells the full story. See the NHYDY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Norsk Hydro ASA is an aluminium and renewable energy company. The company owns and operates businesses and holds investments in sustainable industries. Its operations span multiple market segments, including aluminum, energy, metal recycling, renewable energy, and batteries, providing expertise across these areas. The company's reportable segments are Hydro Bauxite & Alumina, Hydro Energy, Hydro Aluminium Metal and Hydro Extrusions and Hydro Metal Markets activities. The majority of the company's revenue is derived from the Hydro Extrusions segment, which delivers products within extruded profiles, building systems and precision tubing, and operates several recycling facilities, both integrated with its extrusion plants and separate plants.
82GF Score
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