Noranda Aluminum Holding Corporation (NORNQ)
For informational purposes only. Not financial advice. Analysis by Sedat Aydin, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Noranda Aluminum Holding Corporation (NORNQ) with AI Score 39/100 (Weak). Noranda Aluminum Holding Corporation produces and sells primary aluminum, alumina, bauxite, and rolled aluminum coils in the United States. Market cap: 0, Sector: Basic materials.
Last analyzed: Mar 16, 2026Noranda Aluminum Holding Corporation (NORNQ) Materials & Commodity Exposure
Noranda Aluminum Holding Corporation, founded in 2007, operates in the basic materials sector, producing and selling primary aluminum, alumina, bauxite, and rolled aluminum coils. The company serves original equipment manufacturers across various industries, including air conditioning, transformer, and packaging, with a focus on the United States market.
Investment Thesis
Noranda Aluminum Holding Corporation's investment thesis hinges on its integrated operations across the aluminum value chain, from bauxite mining to finished rolled products. However, with a negative profit margin of -21.1% and a negative gross margin of -1.1%, the company faces significant financial challenges. The company's beta of -62.98 suggests an inverse correlation with the market, which could be a risk. Future growth depends on improvements in operational efficiency, cost management, and market demand for aluminum products. Investors should closely monitor the company's ability to improve profitability and manage its financial challenges in a competitive market.
Based on FMP financials and quantitative analysis
Key Highlights
- Negative Profit Margin of -21.1% indicates significant challenges in profitability.
- Negative Gross Margin of -1.1% reflects difficulties in covering production costs.
- Free Cash Flow (FCF) is negative, indicating the company is not generating positive cash flow from operations.
- Beta of -62.98 suggests an inverse correlation with the market, which could be a risk.
- The company operates across four segments: Bauxite, Alumina, Primary Aluminum, and Flat-Rolled Products, providing diversification within the aluminum value chain.
Strengths
- Integrated operations across the aluminum value chain.
- Access to bauxite reserves.
- Established relationships with OEMs.
- Diversified product portfolio.
Weaknesses
- Negative profit margin.
- Negative gross margin.
- Negative free cash flow.
- High debt levels.
Catalysts
- Ongoing: Implementation of operational efficiency improvements across all segments to reduce costs and improve profitability.
- Ongoing: Strategic partnerships with OEMs to secure long-term supply contracts and stable revenue streams.
- Upcoming: Potential expansion of flat-rolled products for automotive applications, targeting the growing demand for lightweight materials (Timeline: 3-5 years).
- Upcoming: Possible increase in alumina production for chemical applications, capitalizing on the growing market for chemical-grade alumina (Timeline: 2-3 years).
Risks
- Ongoing: Fluctuations in aluminum prices impacting revenue and profitability.
- Ongoing: Intense competition from other aluminum producers.
- Potential: Economic downturns affecting demand for aluminum products.
- Potential: Environmental regulations impacting mining and production activities.
- Potential: Financial instability due to negative profit margin and free cash flow.
Growth Opportunities
- Expansion of Flat-Rolled Products: The increasing demand for lightweight materials in the automotive industry presents a growth opportunity for Noranda's Flat-Rolled Products segment. By expanding production capacity and developing new alloys for automotive applications, Noranda can capitalize on this trend. The global automotive aluminum market is projected to reach $40 billion by 2028, offering a substantial market for Noranda to target. Timeline: 3-5 years.
- Increased Alumina Production for Chemical Applications: The market for chemical-grade alumina is growing due to its use in various industrial applications, including catalysts and abrasives. Noranda can increase its alumina production and target this market segment to diversify its revenue streams. The chemical-grade alumina market is expected to grow at a rate of 4% annually. Timeline: 2-3 years.
- Strategic Partnerships with OEMs: Forming strategic partnerships with original equipment manufacturers (OEMs) in the air conditioning, transformer, and packaging industries can provide Noranda with long-term supply contracts and stable revenue streams. These partnerships can also facilitate the development of customized aluminum products tailored to specific OEM needs. Timeline: Ongoing.
- Operational Efficiency Improvements: Implementing operational efficiency improvements across all segments, including bauxite mining, alumina refining, and aluminum production, can reduce costs and improve profitability. This includes investing in modern equipment, optimizing production processes, and reducing waste. Timeline: Ongoing.
- Geographic Expansion within the United States: While Noranda primarily operates within the United States, there are opportunities to expand its geographic reach by establishing new distribution centers or acquiring smaller aluminum producers in underserved regions. This can increase its market share and reduce transportation costs. Timeline: 3-5 years.
Opportunities
- Expansion of flat-rolled products for automotive applications.
- Increased alumina production for chemical applications.
- Strategic partnerships with OEMs.
- Operational efficiency improvements.
Threats
- Fluctuations in aluminum prices.
- Increased competition from other aluminum producers.
- Economic downturns affecting demand for aluminum products.
- Environmental regulations impacting mining and production activities.
Competitive Advantages
- Integrated operations across the aluminum value chain.
- Access to bauxite reserves for alumina production.
- Established relationships with original equipment manufacturers (OEMs).
- Production of specialized aluminum products for specific applications.
About NORNQ
Noranda Aluminum Holding Corporation, established in 2007 and headquartered in Franklin, Tennessee, operates as a producer and seller of primary aluminum and related products. The company's operations are divided into four key segments: Bauxite, Alumina, Primary Aluminum, and Flat-Rolled Products. The Bauxite segment is involved in the mining, production, and sale of bauxite, a crucial raw material for alumina production. The Alumina segment refines bauxite into alumina, a key component in primary aluminum production, and also sells smelter grade alumina and chemical-grade alumina. The Primary Aluminum segment focuses on producing and selling aluminum products in various forms, including billets, rods, sow and foundry, and commodity grade sow. The Flat-Rolled Products segment produces rolled aluminum products, such as finstock, container stock, converter foils, and transformer windings, catering to original equipment manufacturers in industries like air conditioning, transformers, semi-rigid containers, and foil packaging. The company's products are primarily sold within the United States.
What They Do
- Mines bauxite, a raw material used in alumina production.
- Refines bauxite into alumina, a key component in primary aluminum production.
- Produces primary aluminum in various forms, including billets, rods, and sow.
- Manufactures flat-rolled aluminum products such as finstock and container stock.
- Sells aluminum products to original equipment manufacturers (OEMs).
- Supplies aluminum for air conditioners, transformers, and packaging applications.
Business Model
- Integrated aluminum production from bauxite mining to finished products.
- Sales of alumina to other aluminum producers.
- Direct sales to original equipment manufacturers (OEMs).
- Revenue generation through product sales across four segments: Bauxite, Alumina, Primary Aluminum, and Flat-Rolled Products.
Industry Context
Noranda Aluminum Holding Corporation operates within the aluminum industry, a sector characterized by cyclical demand and sensitivity to global economic conditions. The industry is highly competitive, with major players including Alcoa and Rio Tinto. Market trends include increasing demand for aluminum in automotive and packaging applications due to its lightweight and recyclable properties. Noranda's integrated operations, spanning from bauxite mining to rolled products, position it to capture value across the aluminum value chain, but it must navigate intense competition and fluctuating commodity prices.
Key Customers
- Original equipment manufacturers (OEMs) in the air conditioning industry.
- OEMs in the transformer manufacturing sector.
- Companies producing semi-rigid containers.
- Businesses involved in foil packaging.
Financials
Chart & Info
Noranda Aluminum Holding Corporation (NORNQ) stock price: Price data unavailable
Latest News
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Stocks That Hit 52-Week Lows On Friday
· Oct 4, 2019
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for NORNQ.
Price Targets
Wall Street price target analysis for NORNQ.
MoonshotScore
What does this score mean?
The MoonshotScore rates NORNQ's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
NORNQ OTC Market Information
The OTC Other tier represents the lowest tier of the OTC market, characterized by companies that may be defunct, in bankruptcy, or unwilling or unable to meet the minimum disclosure requirements of higher tiers like OTCQX or OTCQB. Companies in this tier often have limited or no financial disclosure, making it difficult for investors to assess their financial health and operational performance. Trading on the OTC Other tier carries significant risks due to the lack of transparency and regulatory oversight compared to exchanges like NYSE or NASDAQ.
- OTC Tier: OTC Other
- Disclosure Status: Unknown
- Limited or no financial disclosure.
- High risk of fraud or manipulation.
- Low liquidity and wide bid-ask spreads.
- Potential for delisting or suspension of trading.
- Lack of regulatory oversight.
- Verify the company's legal status and registration.
- Attempt to obtain and review any available financial statements.
- Assess the company's management team and their track record.
- Research the company's business model and competitive landscape.
- Evaluate the company's risk factors and potential liabilities.
- Consult with a financial advisor before investing.
- Understand the risks associated with OTC trading.
- Consistent operational history (if verifiable).
- Presence of a functional website with contact information.
- Any available public filings or press releases.
- Independent third-party analysis (if available).
- Clear business model and revenue generation strategy (if verifiable).
NORNQ Basic Materials Stock FAQ
What does Noranda Aluminum Holding Corporation do?
Noranda Aluminum Holding Corporation is involved in the production and sale of primary aluminum, alumina, bauxite, and rolled aluminum coils. The company operates through four segments: Bauxite, Alumina, Primary Aluminum, and Flat-Rolled Products. It mines bauxite, refines it into alumina, produces primary aluminum in various forms, and manufactures flat-rolled aluminum products. These products are sold to original equipment manufacturers (OEMs) in industries such as air conditioning, transformers, and packaging. The company's integrated operations span the entire aluminum value chain.
What do analysts say about NORNQ stock?
Given that Noranda Aluminum Holding Corporation trades on the OTC market and has limited financial disclosure, formal analyst coverage is likely minimal or non-existent. Key valuation metrics such as price-to-earnings ratio are not applicable due to negative earnings. Investors should focus on the company's ability to improve its financial performance, manage its debt, and navigate the competitive landscape of the aluminum industry. Growth considerations include potential operational improvements and strategic partnerships.
What are the main risks for NORNQ?
Noranda Aluminum Holding Corporation faces several significant risks. These include fluctuations in aluminum prices, intense competition from other aluminum producers, and the potential for economic downturns to negatively impact demand for its products. Additionally, environmental regulations could impact mining and production activities, increasing costs. The company's negative profit margin and free cash flow also pose significant financial risks, potentially limiting its ability to invest in growth and innovation. Trading on the OTC market adds further risks due to lack of regulatory oversight.
What are the key factors to evaluate for NORNQ?
Noranda Aluminum Holding Corporation (NORNQ) currently holds an AI score of 39/100, indicating low score. Key strength: Integrated operations across the aluminum value chain.. Primary risk to monitor: Ongoing: Fluctuations in aluminum prices impacting revenue and profitability.. This is not financial advice.
How frequently does NORNQ data refresh on this page?
NORNQ prices update in real time during U.S. market hours (9:30 AM-4:00 PM ET, weekdays). Fundamentals refresh after quarterly or annual filings. Analyst ratings and AI insights update daily. News is aggregated continuously from financial sources.
What has driven NORNQ's recent stock price performance?
Recent price movement in Noranda Aluminum Holding Corporation (NORNQ) can be influenced by earnings results, analyst revisions, sector rotation, and broader market sentiment. Notable catalyst: Integrated operations across the aluminum value chain.. Check the News and Technical Analysis tabs for the latest drivers. Past performance does not predict future results.
Should investors consider NORNQ overvalued or undervalued right now?
Determining whether Noranda Aluminum Holding Corporation (NORNQ) is overvalued or undervalued requires examining multiple metrics. Compare valuation ratios (P/E, P/S, EV/EBITDA) against sector peers for a comprehensive view.
What research should beginners do before buying NORNQ?
Before investing in Noranda Aluminum Holding Corporation (NORNQ), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Limited financial data available for comprehensive analysis.
- OTC market stocks carry higher risk and lower transparency.