NOKIA OYJ (1NOKIA.MI) Stock Fundamental Analysis
BIT:1NOKIA - Euronext Milan - FI0009000681 - Common Stock - Currency: EUR
1NOKIA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 25 industry peers in the Communications Equipment industry. Both the profitability and the financial health of 1NOKIA get a neutral evaluation. Nothing too spectacular is happening here. 1NOKIA is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year 1NOKIA was profitable.
In the past year 1NOKIA had a positive cash flow from operations.
1NOKIA had positive earnings in 4 of the past 5 years.
Each year in the past 5 years 1NOKIA had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 2.00%, 1NOKIA is doing good in the industry, outperforming 73.08% of the companies in the same industry.
With a decent Return On Equity value of 3.79%, 1NOKIA is doing good in the industry, outperforming 73.08% of the companies in the same industry.
1NOKIA has a better Return On Invested Capital (3.60%) than 61.54% of its industry peers.
1NOKIA had an Average Return On Invested Capital over the past 3 years of 4.03%. This is significantly below the industry average of 9.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2% | ||
| ROE | 3.79% | ||
| ROIC | 3.6% |
ROA(3y)4.94%
ROA(5y)2.38%
ROE(3y)9.78%
ROE(5y)3.69%
ROIC(3y)4.03%
ROIC(5y)4.01%
1.3 Margins
1NOKIA has a better Profit Margin (4.10%) than 73.08% of its industry peers.
In the last couple of years the Profit Margin of 1NOKIA has grown nicely.
1NOKIA has a Operating Margin of 8.08%. This is in the better half of the industry: 1NOKIA outperforms 73.08% of its industry peers.
1NOKIA's Operating Margin has improved in the last couple of years.
1NOKIA has a Gross Margin (44.23%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of 1NOKIA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.08% | ||
| PM (TTM) | 4.1% | ||
| GM | 44.23% |
OM growth 3Y-3.28%
OM growth 5Y14.2%
PM growth 3Y-3.13%
PM growth 5Y194.44%
GM growth 3Y5.04%
GM growth 5Y5.25%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1NOKIA is destroying value.
The number of shares outstanding for 1NOKIA has been reduced compared to 1 year ago.
Compared to 5 years ago, 1NOKIA has less shares outstanding
Compared to 1 year ago, 1NOKIA has an improved debt to assets ratio.
2.2 Solvency
1NOKIA has an Altman-Z score of 2.16. This is not the best score and indicates that 1NOKIA is in the grey zone with still only limited risk for bankruptcy at the moment.
1NOKIA's Altman-Z score of 2.16 is fine compared to the rest of the industry. 1NOKIA outperforms 61.54% of its industry peers.
1NOKIA has a debt to FCF ratio of 2.83. This is a good value and a sign of high solvency as 1NOKIA would need 2.83 years to pay back of all of its debts.
1NOKIA's Debt to FCF ratio of 2.83 is fine compared to the rest of the industry. 1NOKIA outperforms 61.54% of its industry peers.
1NOKIA has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
1NOKIA's Debt to Equity ratio of 0.14 is amongst the best of the industry. 1NOKIA outperforms 80.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 2.83 | ||
| Altman-Z | 2.16 |
ROIC/WACC0.52
WACC6.88%
2.3 Liquidity
1NOKIA has a Current Ratio of 1.36. This is a normal value and indicates that 1NOKIA is financially healthy and should not expect problems in meeting its short term obligations.
1NOKIA has a Current ratio of 1.36. This is comparable to the rest of the industry: 1NOKIA outperforms 46.15% of its industry peers.
A Quick Ratio of 1.15 indicates that 1NOKIA should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.15, 1NOKIA perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.45% over the past year.
The Earnings Per Share has been growing by 11.14% on average over the past years. This is quite good.
Looking at the last year, 1NOKIA shows a decrease in Revenue. The Revenue has decreased by -9.02% in the last year.
1NOKIA shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.79% yearly.
EPS 1Y (TTM)6.45%
EPS 3Y1.77%
EPS 5Y11.14%
EPS Q2Q%-66.67%
Revenue 1Y (TTM)-9.02%
Revenue growth 3Y-4.69%
Revenue growth 5Y-3.79%
Sales Q2Q%-5.94%
3.2 Future
Based on estimates for the next years, 1NOKIA will show a small growth in Earnings Per Share. The EPS will grow by 1.25% on average per year.
1NOKIA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.89% yearly.
EPS Next Y-17.02%
EPS Next 2Y-2.97%
EPS Next 3Y0.5%
EPS Next 5Y1.25%
Revenue Next Year6.48%
Revenue Next 2Y4.93%
Revenue Next 3Y3.99%
Revenue Next 5Y1.89%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
1NOKIA is valuated correctly with a Price/Earnings ratio of 13.99.
1NOKIA's Price/Earnings ratio is rather cheap when compared to the industry. 1NOKIA is cheaper than 92.31% of the companies in the same industry.
1NOKIA is valuated rather cheaply when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
1NOKIA is valuated correctly with a Price/Forward Earnings ratio of 12.57.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1NOKIA indicates a rather cheap valuation: 1NOKIA is cheaper than 92.31% of the companies listed in the same industry.
1NOKIA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.99 | ||
| Fwd PE | 12.57 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1NOKIA indicates a somewhat cheap valuation: 1NOKIA is cheaper than 76.92% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 1NOKIA is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.92 | ||
| EV/EBITDA | 8.2 |
4.3 Compensation for Growth
1NOKIA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.26
EPS Next 2Y-2.97%
EPS Next 3Y0.5%
5. Dividend
5.1 Amount
1NOKIA has a Yearly Dividend Yield of 2.96%.
Compared to an average industry Dividend Yield of 5.11, 1NOKIA pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, 1NOKIA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
5.2 History
The dividend of 1NOKIA has a limited annual growth rate of 5.44%.
Dividend Growth(5Y)5.44%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
91.46% of the earnings are spent on dividend by 1NOKIA. This is not a sustainable payout ratio.
1NOKIA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP91.46%
EPS Next 2Y-2.97%
EPS Next 3Y0.5%
BIT:1NOKIA (5/16/2025, 7:00:00 PM)
4.616
-0.04 (-0.97%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners35.57%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap24.88B
Analysts70.56
Price Target4.95 (7.24%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
Yearly Dividend0.13
Dividend Growth(5Y)5.44%
DP91.46%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.62%
Min EPS beat(2)-27.18%
Max EPS beat(2)30.42%
EPS beat(4)2
Avg EPS beat(4)-2.5%
Min EPS beat(4)-27.18%
Max EPS beat(4)30.42%
EPS beat(8)3
Avg EPS beat(8)-4.29%
EPS beat(12)6
Avg EPS beat(12)-1.77%
EPS beat(16)10
Avg EPS beat(16)6.47%
Revenue beat(2)1
Avg Revenue beat(2)-1.27%
Min Revenue beat(2)-3.71%
Max Revenue beat(2)1.17%
Revenue beat(4)1
Avg Revenue beat(4)-5.83%
Min Revenue beat(4)-11.71%
Max Revenue beat(4)1.17%
Revenue beat(8)1
Avg Revenue beat(8)-8.12%
Revenue beat(12)3
Avg Revenue beat(12)-5.18%
Revenue beat(16)4
Avg Revenue beat(16)-4.36%
PT rev (1m)-3.06%
PT rev (3m)-0.46%
EPS NQ rev (1m)-4.56%
EPS NQ rev (3m)-11.09%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.34%
Revenue NQ rev (1m)1.6%
Revenue NQ rev (3m)4.31%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)4.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.99 | ||
| Fwd PE | 12.57 | ||
| P/S | 1.3 | ||
| P/FCF | 13.92 | ||
| P/OCF | 10.74 | ||
| P/B | 1.2 | ||
| P/tB | 1.98 | ||
| EV/EBITDA | 8.2 |
EPS(TTM)0.33
EY7.15%
EPS(NY)0.37
Fwd EY7.95%
FCF(TTM)0.33
FCFY7.18%
OCF(TTM)0.43
OCFY9.31%
SpS3.56
BVpS3.85
TBVpS2.34
PEG (NY)N/A
PEG (5Y)1.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2% | ||
| ROE | 3.79% | ||
| ROCE | 5.68% | ||
| ROIC | 3.6% | ||
| ROICexc | 4.9% | ||
| ROICexgc | 8.24% | ||
| OM | 8.08% | ||
| PM (TTM) | 4.1% | ||
| GM | 44.23% | ||
| FCFM | 9.32% |
ROA(3y)4.94%
ROA(5y)2.38%
ROE(3y)9.78%
ROE(5y)3.69%
ROIC(3y)4.03%
ROIC(5y)4.01%
ROICexc(3y)5.79%
ROICexc(5y)5.89%
ROICexgc(3y)8.68%
ROICexgc(5y)9.27%
ROCE(3y)6.35%
ROCE(5y)6.32%
ROICexcg growth 3Y-10.42%
ROICexcg growth 5Y11%
ROICexc growth 3Y-8.64%
ROICexc growth 5Y12.18%
OM growth 3Y-3.28%
OM growth 5Y14.2%
PM growth 3Y-3.13%
PM growth 5Y194.44%
GM growth 3Y5.04%
GM growth 5Y5.25%
F-Score6
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 2.83 | ||
| Debt/EBITDA | 1.16 | ||
| Cap/Depr | 52.02% | ||
| Cap/Sales | 2.76% | ||
| Interest Coverage | 6.24 | ||
| Cash Conversion | 90.29% | ||
| Profit Quality | 227.64% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 2.16 |
F-Score6
WACC6.88%
ROIC/WACC0.52
Cap/Depr(3y)53.08%
Cap/Depr(5y)50.54%
Cap/Sales(3y)2.6%
Cap/Sales(5y)2.5%
Profit Quality(3y)92.93%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.45%
EPS 3Y1.77%
EPS 5Y11.14%
EPS Q2Q%-66.67%
EPS Next Y-17.02%
EPS Next 2Y-2.97%
EPS Next 3Y0.5%
EPS Next 5Y1.25%
Revenue 1Y (TTM)-9.02%
Revenue growth 3Y-4.69%
Revenue growth 5Y-3.79%
Sales Q2Q%-5.94%
Revenue Next Year6.48%
Revenue Next 2Y4.93%
Revenue Next 3Y3.99%
Revenue Next 5Y1.89%
EBIT growth 1Y-6.92%
EBIT growth 3Y-7.82%
EBIT growth 5Y9.88%
EBIT Next Year11.92%
EBIT Next 3Y12.52%
EBIT Next 5Y5.8%
FCF growth 1Y404.8%
FCF growth 3Y-0.72%
FCF growth 5YN/A
OCF growth 1Y132.06%
OCF growth 3Y-1.71%
OCF growth 5Y44.92%