NOKIA CORP-SPON ADR (NOK)
US6549022043 - ADR
We assign a fundamental rating of 5 out of 10 to NOK. NOK was compared to 54 industry peers in the Communications Equipment industry. NOK has only an average score on both its financial health and profitability. NOK is cheap, but on the other hand it scores bad on growth. These ratings could make NOK a good candidate for value investing.
1. Profitability
1.1 Basic Checks
NOK had positive earnings in the past year.
NOK had a positive operating cash flow in the past year.
Of the past 5 years NOK 4 years were profitable.
Each year in the past 5 years NOK had a positive operating cash flow.
1.2 Ratios
NOK has a better Return On Assets (2.07%) than 74.07% of its industry peers.
The Return On Equity of NOK (3.88%) is better than 74.07% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.56%, NOK is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NOK is below the industry average of 10.09%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.07% | ||
| ROE | 3.88% | ||
| ROIC | 4.56% |
ROA(3y)5.21%
ROA(5y)1.73%
ROE(3y)10.84%
ROE(5y)2.46%
ROIC(3y)5.43%
ROIC(5y)4.66%
1.3 Margins
NOK has a better Profit Margin (3.90%) than 75.93% of its industry peers.
Looking at the Operating Margin, with a value of 7.89%, NOK belongs to the top of the industry, outperforming 81.48% of the companies in the same industry.
In the last couple of years the Operating Margin of NOK has grown nicely.
NOK's Gross Margin of 41.43% is fine compared to the rest of the industry. NOK outperforms 61.11% of its industry peers.
In the last couple of years the Gross Margin of NOK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.89% | ||
| PM (TTM) | 3.9% | ||
| GM | 41.43% |
OM growth 3Y3.97%
OM growth 5Y35.46%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.35%
GM growth 5Y0.84%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NOK is destroying value.
NOK has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, NOK has less shares outstanding
The debt/assets ratio for NOK is higher compared to a year ago.
2.2 Solvency
NOK has an Altman-Z score of 2.12. This is not the best score and indicates that NOK is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.12, NOK is doing good in the industry, outperforming 70.37% of the companies in the same industry.
The Debt to FCF ratio of NOK is 2.69, which is a good value as it means it would take NOK, 2.69 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of NOK (2.69) is better than 64.81% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that NOK is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.18, NOK is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.69 | ||
| Altman-Z | 2.12 |
ROIC/WACC0.69
WACC6.65%
2.3 Liquidity
NOK has a Current Ratio of 1.64. This is a normal value and indicates that NOK is financially healthy and should not expect problems in meeting its short term obligations.
NOK has a Current ratio of 1.64. This is in the lower half of the industry: NOK underperforms 64.81% of its industry peers.
NOK has a Quick Ratio of 1.40. This is a normal value and indicates that NOK is financially healthy and should not expect problems in meeting its short term obligations.
NOK has a Quick ratio of 1.40. This is comparable to the rest of the industry: NOK outperforms 55.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
NOK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -26.19%.
Measured over the past 5 years, NOK shows a small growth in Earnings Per Share. The EPS has been growing by 3.13% on average per year.
Looking at the last year, NOK shows a very negative growth in Revenue. The Revenue has decreased by -17.13% in the last year.
NOK shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.27% yearly.
EPS 1Y (TTM)-26.19%
EPS 3Y2.5%
EPS 5Y3.13%
EPS growth Q2Q50%
Revenue 1Y (TTM)-17.13%
Revenue growth 3Y0.62%
Revenue growth 5Y-0.27%
Revenue growth Q2Q-20.34%
3.2 Future
Based on estimates for the next years, NOK will show a small growth in Earnings Per Share. The EPS will grow by 7.67% on average per year.
The Revenue is expected to decrease by -1.04% on average over the next years.
EPS Next Y25.21%
EPS Next 2Y11.23%
EPS Next 3Y10.55%
EPS Next 5Y7.67%
Revenue Next Year-4.78%
Revenue Next 2Y-2.07%
Revenue Next 3Y-0.97%
Revenue Next 5Y-1.04%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.41, which indicates a very decent valuation of NOK.
Compared to the rest of the industry, the Price/Earnings ratio of NOK indicates a rather cheap valuation: NOK is cheaper than 88.89% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of NOK to the average of the S&P500 Index (28.83), we can say NOK is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.35, the valuation of NOK can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NOK indicates a somewhat cheap valuation: NOK is cheaper than 77.78% of the companies listed in the same industry.
NOK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.47, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.41 | ||
| Fwd PE | 10.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NOK is valued cheaper than 98.15% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NOK is valued cheaply inside the industry as 85.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.19 | ||
| EV/EBITDA | 4.89 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NOK has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.45
PEG (5Y)3.64
EPS Next 2Y11.23%
EPS Next 3Y10.55%
5. Dividend
5.1 Amount
NOK has a Yearly Dividend Yield of 3.45%. Purely for dividend investing, there may be better candidates out there.
NOK's Dividend Yield is rather good when compared to the industry average which is at 17.18. NOK pays more dividend than 88.89% of the companies in the same industry.
NOK's Dividend Yield is a higher than the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
5.2 History
The dividend of NOK decreases each year by -10.39%.
NOK has been paying a dividend for at least 10 years, so it has a reliable track record.
NOK has decreased its dividend recently.
Dividend Growth(5Y)-10.39%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
82.22% of the earnings are spent on dividend by NOK. This is not a sustainable payout ratio.
DP82.22%
EPS Next 2Y11.23%
EPS Next 3Y10.55%
NOKIA CORP-SPON ADR
NYSE:NOK (5/16/2024, 7:07:25 PM)
After market: 3.88 0 (0%)3.88
+0.01 (+0.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap21.44B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.41 | ||
| Fwd PE | 10.35 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.45
PEG (5Y)3.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.07% | ||
| ROE | 3.88% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.89% | ||
| PM (TTM) | 3.9% | ||
| GM | 41.43% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-26.19%
EPS 3Y2.5%
EPS 5Y
EPS growth Q2Q
EPS Next Y25.21%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-17.13%
Revenue growth 3Y0.62%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y