Nel ASA's Oversold RSI and Premium Valuation Set Up a Tense Standoff After Q2
Published on 07/19/2026 at 13:34 | Redaktion boerse-global.de
Nel ASA finds itself caught between two contradictory signals: a deeply oversold technical picture and a valuation multiple that still commands a hefty premium over its peers. That tension came into sharper focus after the Norwegian hydrogen specialist delivered a mixed second-quarter report that left investors parsing a widening operational loss against an extraordinary surge in order intake.
The stock closed at €0.1922 on Friday, down 1.94% on the day and 47.41% below its 52-week high of €0.3655 set on 25 May 2026. The 14-day relative strength index has fallen to 30.0, a level that typically signals exhaustion in a downtrend. Yet the company’s price-to-sales ratio of roughly 4.4 stands more than three times the European electrical equipment sector average of 1.4 and well above the 1.2 multiple of direct competitors. Critics argue that valuation leaves little room for error given Nel’s persistent losses.
Revenue Dips, Losses Widen on Iwatani Settlement
Second-quarter revenue from customer contracts slipped 12% to 153 million Norwegian kroner. The EBITDA loss deepened to minus 155 million kroner from minus 100 million in the first quarter. A one-off charge dragged the result lower: an agreement with partner Iwatani cost 70 million kroner. Without that item, the operating loss would have been significantly narrower.
On a per-share basis, Nel reported a net loss of 0.10 kroner for the quarter, with a total net loss of 188.6 million kroner. Over the trailing twelve months, the net loss has accumulated to 1.3 billion kroner, equivalent to a loss of 0.70 kroner per share against revenue of 906.4 million kroner. Analysts do not expect Nel to reach profitability in the coming years.
Should investors sell immediately? Or is it worth buying Nel ASA?
Order Intake Provides a Counter-Narrative
While the bottom line disappointed, the order book tells a distinctly different story. Incoming orders surged to 230 million kroner, up 171% from the previous quarter and 224% year-on-year. PEM electrolysis accounted for 96% of those new bookings. The total order backlog grew 9% quarter-on-quarter to 1.213 billion kroner.
CEO Håkon Volldal described the period as showing “encouraging commercial momentum”, pointing to two significant purchase orders and the commercial launch of the PA-Series platform for pressurised alkaline electrolysis. The company continues to work on its partnership network, with particular emphasis on the cooperation with Reliance in India, aimed at building a gigafactory.
Nel’s cash position remains healthy, according to management, which characterises the current phase as one of consolidation rather than growth. The goal is to cover ongoing costs and invest in technology until the hydrogen market picks up.
Nel ASA at a turning point? This analysis reveals what investors need to know now.
Technical Picture: Oversold but Trend Remains Down
Despite the oversold RSI reading, the stock is trading 24.54% below its 50-day moving average of €0.2547 and 10.73% below the 200-day average of €0.2153. That configuration keeps the downtrend intact. The annualised 30-day volatility of 46.01% underscores how jittery trading has been recently.
The next scheduled catalyst is the third-quarter report on 21 October. In the meantime, the share will likely be driven by broader sentiment around green hydrogen and electrolysers. The key support level to watch is the 2026 low of €0.1731 from 26 February – with just 11% downside from Friday’s close, the margin for error is razor-thin.
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Nel ASA Stock: New Analysis - 19 July
Fresh Nel ASA information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
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