NOKIA OYJ (NOA3.DE) Stock Fundamental Analysis
FRA:NOA3 - Deutsche Boerse Ag - FI0009000681 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to NOA3. NOA3 was compared to 25 industry peers in the Communications Equipment industry. NOA3 has only an average score on both its financial health and profitability. NOA3 has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
NOA3 had positive earnings in the past year.
NOA3 had a positive operating cash flow in the past year.
NOA3 had positive earnings in 4 of the past 5 years.
NOA3 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.00%, NOA3 is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
NOA3 has a better Return On Equity (3.79%) than 72.00% of its industry peers.
NOA3 has a Return On Invested Capital (3.60%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for NOA3 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
NOA3 has a Profit Margin of 4.10%. This is in the better half of the industry: NOA3 outperforms 72.00% of its industry peers.
NOA3's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 8.08%, NOA3 is doing good in the industry, outperforming 68.00% of the companies in the same industry.
In the last couple of years the Operating Margin of NOA3 has grown nicely.
NOA3's Gross Margin of 44.23% is on the low side compared to the rest of the industry. NOA3 is outperformed by 60.00% of its industry peers.
NOA3's Gross Margin has improved in the last couple of years.
| 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), NOA3 is destroying value.
The number of shares outstanding for NOA3 has been reduced compared to 1 year ago.
Compared to 5 years ago, NOA3 has less shares outstanding
NOA3 has a better debt/assets ratio than last year.
2.2 Solvency
NOA3 has an Altman-Z score of 2.18. This is not the best score and indicates that NOA3 is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of NOA3 (2.18) is better than 68.00% of its industry peers.
NOA3 has a debt to FCF ratio of 2.83. This is a good value and a sign of high solvency as NOA3 would need 2.83 years to pay back of all of its debts.
With a Debt to FCF ratio value of 2.83, NOA3 perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that NOA3 is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.14, NOA3 is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 2.83 | ||
| Altman-Z | 2.18 |
ROIC/WACC0.52
WACC6.89%
2.3 Liquidity
A Current Ratio of 1.36 indicates that NOA3 should not have too much problems paying its short term obligations.
With a Current ratio value of 1.36, NOA3 perfoms like the industry average, outperforming 44.00% of the companies in the same industry.
A Quick Ratio of 1.15 indicates that NOA3 should not have too much problems paying its short term obligations.
NOA3 has a Quick ratio of 1.15. This is comparable to the rest of the industry: NOA3 outperforms 48.00% of its industry peers.
| 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, NOA3 shows a decrease in Revenue. The Revenue has decreased by -9.02% in the last year.
NOA3 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
NOA3 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.25% yearly.
NOA3 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
Based on the Price/Earnings ratio of 14.42, the valuation of NOA3 can be described as correct.
NOA3's Price/Earnings ratio is rather cheap when compared to the industry. NOA3 is cheaper than 88.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.19. NOA3 is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 12.95, which indicates a correct valuation of NOA3.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NOA3 indicates a rather cheap valuation: NOA3 is cheaper than 88.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.13. NOA3 is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.42 | ||
| Fwd PE | 12.95 |
4.2 Price Multiples
68.00% of the companies in the same industry are more expensive than NOA3, based on the Enterprise Value to EBITDA ratio.
NOA3's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.35 | ||
| EV/EBITDA | 8.5 |
4.3 Compensation for Growth
NOA3 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.29
EPS Next 2Y-2.97%
EPS Next 3Y0.5%
5. Dividend
5.1 Amount
NOA3 has a Yearly Dividend Yield of 2.96%.
NOA3's Dividend Yield is a higher than the industry average which is at 5.11.
NOA3's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
5.2 History
The dividend of NOA3 has a limited annual growth rate of 5.44%.
Dividend Growth(5Y)5.44%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
91.46% of the earnings are spent on dividend by NOA3. This is not a sustainable payout ratio.
The dividend of NOA3 is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP91.46%
EPS Next 2Y-2.97%
EPS Next 3Y0.5%
FRA:NOA3 (5/28/2025, 7:00:00 PM)
4.757
-0.01 (-0.25%)
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 Cap25.64B
Analysts70.56
Price Target4.9 (3.01%)
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 Years2
Div Non Decr Years2
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)-4.02%
PT rev (3m)-1.2%
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 | 14.42 | ||
| Fwd PE | 12.95 | ||
| P/S | 1.34 | ||
| P/FCF | 14.35 | ||
| P/OCF | 11.07 | ||
| P/B | 1.24 | ||
| P/tB | 2.04 | ||
| EV/EBITDA | 8.5 |
EPS(TTM)0.33
EY6.94%
EPS(NY)0.37
Fwd EY7.72%
FCF(TTM)0.33
FCFY6.97%
OCF(TTM)0.43
OCFY9.03%
SpS3.56
BVpS3.85
TBVpS2.34
PEG (NY)N/A
PEG (5Y)1.29
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 | 2.18 |
F-Score6
WACC6.89%
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%