NOKIA CORP-SPON ADR (NOK) Stock Fundamental Analysis
NYSE:NOK - New York Stock Exchange, Inc. - US6549022043 - ADR - Currency: USD
Overall NOK gets a fundamental rating of 5 out of 10. We evaluated NOK against 50 industry peers in the Communications Equipment industry. NOK has an average financial health and profitability rating. NOK is valued correctly, but it does not seem to be growing.
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's Return On Assets of 2.00% is fine compared to the rest of the industry. NOK outperforms 68.00% of its industry peers.
Looking at the Return On Equity, with a value of 3.79%, NOK is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
With a decent Return On Invested Capital value of 3.60%, NOK is doing good in the industry, outperforming 66.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NOK is significantly below the industry average of 13.73%.
| 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
NOK's Profit Margin of 4.10% is fine compared to the rest of the industry. NOK outperforms 70.00% of its industry peers.
NOK's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 8.08%, NOK is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
NOK's Operating Margin has improved in the last couple of years.
NOK has a Gross Margin (44.23%) which is in line with its industry peers.
In the last couple of years the Gross Margin of NOK 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
NOK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for NOK has been reduced compared to 1 year ago.
NOK has less shares outstanding than it did 5 years ago.
NOK has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.14 indicates that NOK is not a great score, but indicates only limited risk for bankruptcy at the moment.
NOK has a better Altman-Z score (2.14) than 64.00% of its industry peers.
NOK has a debt to FCF ratio of 2.83. This is a good value and a sign of high solvency as NOK would need 2.83 years to pay back of all of its debts.
NOK has a Debt to FCF ratio (2.83) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.14 indicates that NOK is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.14, NOK is in line with its industry, outperforming 54.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 2.83 | ||
| Altman-Z | 2.14 |
ROIC/WACC0.52
WACC6.94%
2.3 Liquidity
A Current Ratio of 1.36 indicates that NOK should not have too much problems paying its short term obligations.
The Current ratio of NOK (1.36) is worse than 72.00% of its industry peers.
A Quick Ratio of 1.15 indicates that NOK should not have too much problems paying its short term obligations.
NOK's Quick ratio of 1.15 is on the low side compared to the rest of the industry. NOK is outperformed by 60.00% 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.
NOK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.14% yearly.
The Revenue has decreased by -9.02% 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)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
The Earnings Per Share is expected to grow by 0.49% on average over the next years.
Based on estimates for the next years, NOK will show a small growth in Revenue. The Revenue will grow by 2.77% on average per year.
EPS Next Y-17.02%
EPS Next 2Y-2.97%
EPS Next 3Y0.5%
EPS Next 5Y0.49%
Revenue Next Year6.48%
Revenue Next 2Y4.93%
Revenue Next 3Y3.99%
Revenue Next 5Y2.77%
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.
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
With a Price/Earnings ratio of 13.66, NOK is valued correctly.
Based on the Price/Earnings ratio, NOK is valued cheaply inside the industry as 82.00% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.32. NOK is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 12.30, NOK is valued correctly.
NOK's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NOK is cheaper than 76.00% of the companies in the same industry.
NOK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.66 | ||
| Fwd PE | 12.3 |
4.2 Price Multiples
88.00% of the companies in the same industry are more expensive than NOK, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, NOK is valued a bit cheaper than 72.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.6 | ||
| EV/EBITDA | 7.98 |
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)1.23
EPS Next 2Y-2.97%
EPS Next 3Y0.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.06%, NOK has a reasonable but not impressive dividend return.
NOK's Dividend Yield is rather good when compared to the industry average which is at 3.64. NOK pays more dividend than 88.00% of the companies in the same industry.
NOK's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
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.
The dividend of NOK decreased in the last 3 years.
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 NOK. This is not a sustainable payout ratio.
NOK'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%
5.19
-0.13 (-2.44%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners34.44%
Inst Owner Change16.15%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap27.97B
Analysts70.56
Price Target5.64 (8.67%)
Short Float %0.64%
Short Ratio1.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
Yearly Dividend0.15
Dividend Growth(5Y)5.44%
DP91.46%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)1.18%
PT rev (3m)9.31%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.93%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.66 | ||
| Fwd PE | 12.3 | ||
| P/S | 1.27 | ||
| P/FCF | 13.6 | ||
| P/OCF | 10.49 | ||
| P/B | 1.17 | ||
| P/tB | 1.93 | ||
| EV/EBITDA | 7.98 |
EPS(TTM)0.38
EY7.32%
EPS(NY)0.42
Fwd EY8.13%
FCF(TTM)0.38
FCFY7.35%
OCF(TTM)0.49
OCFY9.53%
SpS4.09
BVpS4.43
TBVpS2.69
PEG (NY)N/A
PEG (5Y)1.23
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 | 2.14 |
F-Score6
WACC6.94%
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 5Y0.49%
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 5Y2.77%
EBIT growth 1Y-6.92%
EBIT growth 3Y-7.82%
EBIT growth 5Y9.88%
EBIT Next Year11.92%
EBIT Next 3Y12.52%
EBIT Next 5Y7.47%
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%