NOKIA CORP-SPON ADR (NOK) Stock Fundamental Analysis
NYSE:NOK - New York Stock Exchange, Inc. - US6549022043 - ADR - Currency: USD
NOK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 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. With these ratings, NOK could be worth investigating further 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.
NOK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 2.83%, NOK is doing good in the industry, outperforming 68.75% of the companies in the same industry.
NOK's Return On Equity of 5.17% is fine compared to the rest of the industry. NOK outperforms 72.92% of its industry peers.
NOK has a better Return On Invested Capital (2.89%) than 60.42% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NOK is significantly below the industry average of 14.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 5.17% | ||
| ROIC | 2.89% |
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
With a decent Profit Margin value of 5.30%, NOK is doing good in the industry, outperforming 70.83% of the companies in the same industry.
In the last couple of years the Profit Margin of NOK has grown nicely.
The Operating Margin of NOK (6.21%) is better than 68.75% of its industry peers.
NOK's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 44.23%, NOK perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
NOK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.21% | ||
| PM (TTM) | 5.3% | ||
| 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), NOK is destroying value.
Compared to 1 year ago, NOK has less shares outstanding
The number of shares outstanding for NOK has been reduced compared to 5 years ago.
NOK has a better debt/assets ratio than last year.
2.2 Solvency
NOK has an Altman-Z score of 2.16. 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.
The Altman-Z score of NOK (2.16) is better than 66.67% of its industry peers.
NOK has a debt to FCF ratio of 2.77. This is a good value and a sign of high solvency as NOK would need 2.77 years to pay back of all of its debts.
NOK's Debt to FCF ratio of 2.77 is fine compared to the rest of the industry. NOK outperforms 62.50% of its industry peers.
NOK has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
NOK has a Debt to Equity ratio (0.16) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 2.77 | ||
| Altman-Z | 2.16 |
ROIC/WACC0.43
WACC6.79%
2.3 Liquidity
A Current Ratio of 1.46 indicates that NOK should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.46, NOK is doing worse than 66.67% of the companies in the same industry.
NOK has a Quick Ratio of 1.21. This is a normal value and indicates that NOK is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of NOK (1.21) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
NOK shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.18%.
The Earnings Per Share has been growing by 11.14% on average over the past years. This is quite good.
The Revenue has decreased by -2.91% in the past year.
Measured over the past years, NOK shows a decrease in Revenue. The Revenue has been decreasing by -3.79% on average per year.
EPS 1Y (TTM)4.18%
EPS 3Y1.77%
EPS 5Y11.14%
EPS Q2Q%-29.09%
Revenue 1Y (TTM)-2.91%
Revenue growth 3Y-4.69%
Revenue growth 5Y-3.79%
Sales Q2Q%-1.71%
3.2 Future
The Earnings Per Share is expected to grow by 0.13% on average over the next years.
NOK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.41% yearly.
EPS Next Y-17.02%
EPS Next 2Y-2.97%
EPS Next 3Y0.5%
EPS Next 5Y0.13%
Revenue Next Year6.48%
Revenue Next 2Y4.93%
Revenue Next 3Y3.99%
Revenue Next 5Y2.41%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.70, which indicates a very decent valuation of NOK.
85.42% of the companies in the same industry are more expensive than NOK, based on the Price/Earnings ratio.
NOK is valuated cheaply when we compare the Price/Earnings ratio to 28.04, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.08, the valuation of NOK can be described as reasonable.
Based on the Price/Forward Earnings ratio, NOK is valued cheaply inside the industry as 89.58% of the companies are valued more expensively.
NOK is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.64, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.7 | ||
| Fwd PE | 10.08 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NOK indicates a rather cheap valuation: NOK is cheaper than 89.58% of the companies listed in the same industry.
NOK's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NOK is cheaper than 77.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.44 | ||
| EV/EBITDA | 7.46 |
4.3 Compensation for Growth
NOK has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.05
EPS Next 2Y-2.97%
EPS Next 3Y0.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.73%, NOK has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.61, NOK pays a better dividend. On top of this NOK pays more dividend than 91.67% of the companies listed in the same industry.
NOK's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
5.2 History
The dividend of NOK has a limited annual growth rate of 5.44%.
NOK has paid a dividend for at least 10 years, which is a reliable track record.
NOK has decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.44%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
69.51% of the earnings are spent on dividend by NOK. This is not a sustainable payout ratio.
The dividend of NOK is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP69.51%
EPS Next 2Y-2.97%
EPS Next 3Y0.5%
4.33
-0.01 (-0.23%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners34.44%
Inst Owner Change0.37%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap23.34B
Analysts70.81
Price Target5.48 (26.56%)
Short Float %0.75%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.73% |
Yearly Dividend0.16
Dividend Growth(5Y)5.44%
DP69.51%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-23.58%
Min EPS beat(2)-27.18%
Max EPS beat(2)-19.98%
EPS beat(4)1
Avg EPS beat(4)-8.55%
Min EPS beat(4)-27.18%
Max EPS beat(4)30.42%
EPS beat(8)3
Avg EPS beat(8)-5.68%
EPS beat(12)5
Avg EPS beat(12)-4.61%
EPS beat(16)9
Avg EPS beat(16)-0.8%
Revenue beat(2)0
Avg Revenue beat(2)-7.35%
Min Revenue beat(2)-11%
Max Revenue beat(2)-3.71%
Revenue beat(4)1
Avg Revenue beat(4)-6.31%
Min Revenue beat(4)-11.71%
Max Revenue beat(4)1.17%
Revenue beat(8)1
Avg Revenue beat(8)-8.7%
Revenue beat(12)2
Avg Revenue beat(12)-6.24%
Revenue beat(16)3
Avg Revenue beat(16)-5.06%
PT rev (1m)-3.68%
PT rev (3m)-6.23%
EPS NQ rev (1m)-3.74%
EPS NQ rev (3m)-3.82%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-0.11%
Revenue NQ rev (1m)3.72%
Revenue NQ rev (3m)3.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.7 | ||
| Fwd PE | 10.08 | ||
| P/S | 1.03 | ||
| P/FCF | 13.44 | ||
| P/OCF | 9.78 | ||
| P/B | 1.01 | ||
| P/tB | 1.64 | ||
| EV/EBITDA | 7.46 |
EPS(TTM)0.37
EY8.55%
EPS(NY)0.43
Fwd EY9.92%
FCF(TTM)0.32
FCFY7.44%
OCF(TTM)0.44
OCFY10.23%
SpS4.19
BVpS4.29
TBVpS2.64
PEG (NY)N/A
PEG (5Y)1.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 5.17% | ||
| ROCE | 4.56% | ||
| ROIC | 2.89% | ||
| ROICexc | 3.76% | ||
| ROICexgc | 6.03% | ||
| OM | 6.21% | ||
| PM (TTM) | 5.3% | ||
| GM | 44.23% | ||
| FCFM | 7.7% |
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-Score8
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 2.77 | ||
| Debt/EBITDA | 1.41 | ||
| Cap/Depr | 53.68% | ||
| Cap/Sales | 2.88% | ||
| Interest Coverage | 4.88 | ||
| Cash Conversion | 91.3% | ||
| Profit Quality | 145.2% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 2.16 |
F-Score8
WACC6.79%
ROIC/WACC0.43
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)4.18%
EPS 3Y1.77%
EPS 5Y11.14%
EPS Q2Q%-29.09%
EPS Next Y-17.02%
EPS Next 2Y-2.97%
EPS Next 3Y0.5%
EPS Next 5Y0.13%
Revenue 1Y (TTM)-2.91%
Revenue growth 3Y-4.69%
Revenue growth 5Y-3.79%
Sales Q2Q%-1.71%
Revenue Next Year6.48%
Revenue Next 2Y4.93%
Revenue Next 3Y3.99%
Revenue Next 5Y2.41%
EBIT growth 1Y-26.17%
EBIT growth 3Y-7.82%
EBIT growth 5Y9.88%
EBIT Next Year11.92%
EBIT Next 3Y12.52%
EBIT Next 5Y7.08%
FCF growth 1Y3797.37%
FCF growth 3Y-0.72%
FCF growth 5YN/A
OCF growth 1Y187.57%
OCF growth 3Y-1.71%
OCF growth 5Y44.92%