ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Norsk Hydro ASA's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 16.12%.
As of today (2026-06-28), Norsk Hydro ASA's WACC % is 9.52%. Norsk Hydro ASA's ROC % is 13.01% (calculated using TTM income statement data).
Norsk Hydro ASA generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Norsk Hydro ASA (OTCPK:NHYDY) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Norsk Hydro ASA's WACC % is 9.52%. Norsk Hydro ASA's ROC % is 13.01% (calculated using TTM income statement data).
Norsk Hydro ASA generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Norsk Hydro ASA ROC % Related Terms
Norsk Hydro ASA ROC % Historical Data
* Premium members only.
The historical data trend for Norsk Hydro ASA's ROC % 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.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 ROC % of 16.12% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Norsk Hydro ASA and its competitors.
Is Norsk Hydro ASA's ROC % too high?
Norsk Hydro ASA's current ROC % is 16.12%. Overall, Norsk Hydro ASA has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Norsk Hydro ASA's ROC % compare to AA and CENX?
Norsk Hydro ASA's ROC % of 16.12% can be compared against companies in the Metals & Mining industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Metals & Mining company?
A good ROC % depends on the Metals & Mining industry context. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Norsk Hydro ASA and its competitors. Norsk Hydro ASA's current ROC % is 16.12%. 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 $6.84, compared to a current price of $8.93 — trading 30.6% above its estimated fair value. The current ROC % is 16.12%. Norsk Hydro ASA's overall GF Score™ is 81/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Norsk Hydro ASA (NHYDY), the current ROC % is 16.12% 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 $8.93 is trading 30.6% above its estimated GF Value™ of $6.84.
GuruFocus considers Norsk Hydro ASA to be Modestly Overvalued.
Key valuation signals for NHYDY:
ROC %: 16.12%
GF Value™: $6.84 vs. price of $8.93 (30.6% above fair value)
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.
81GF Score
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