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 49 industry peers in the Communications Equipment industry. Both the profitability and the financial health of NOK get a neutral evaluation. Nothing too spectacular is happening here. NOK is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year NOK was profitable.
In the past year NOK had a positive cash flow from operations.
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
The Return On Assets of NOK (2.00%) is better than 69.39% 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 71.43% of the companies in the same industry.
NOK has a better Return On Invested Capital (3.60%) than 65.31% of its industry peers.
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 69.39% of its industry peers.
NOK's Profit Margin has improved in the last couple of years.
NOK has a Operating Margin of 8.08%. This is in the better half of the industry: NOK outperforms 69.39% of its industry peers.
NOK's Operating Margin has improved in the last couple of years.
NOK has a Gross Margin of 44.23%. This is comparable to the rest of the industry: NOK outperforms 55.10% of 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NOK is destroying value.
The number of shares outstanding for NOK has been reduced compared to 1 year ago.
Compared to 5 years ago, NOK has less shares outstanding
NOK has a better debt/assets ratio than last year.
2.2 Solvency
NOK has an Altman-Z score of 2.18. 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.
NOK has a Altman-Z score of 2.18. This is in the better half of the industry: NOK outperforms 69.39% 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.
With a Debt to FCF ratio value of 2.83, NOK perfoms like the industry average, outperforming 55.10% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that NOK is not too dependend on debt financing.
NOK has a Debt to Equity ratio (0.14) which is comparable to the rest of the 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
NOK has a Current Ratio of 1.36. This is a normal value and indicates that NOK is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.36, NOK is doing worse than 73.47% of the companies in the same industry.
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 63.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
NOK shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.27%.
The Earnings Per Share has been growing by 11.14% on average over the past years. This is quite good.
NOK shows a decrease in Revenue. In the last year, the revenue decreased by -9.02%.
NOK shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.79% yearly.
EPS 1Y (TTM)5.27%
EPS 3Y1.77%
EPS 5Y11.14%
EPS Q2Q%-70.72%
Revenue 1Y (TTM)-9.02%
Revenue growth 3Y-4.69%
Revenue growth 5Y-3.79%
Sales Q2Q%-13.08%
3.2 Future
The Earnings Per Share is expected to grow by 1.25% 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 1.89% on average per year.
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.
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 14.43, which indicates a correct valuation of NOK.
Compared to the rest of the industry, the Price/Earnings ratio of NOK indicates a somewhat cheap valuation: NOK is cheaper than 79.59% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.82, NOK is valued a bit cheaper.
NOK is valuated correctly with a Price/Forward Earnings ratio of 12.88.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NOK indicates a somewhat cheap valuation: NOK is cheaper than 75.51% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of NOK to the average of the S&P500 Index (21.76), we can say NOK is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.43 | ||
| Fwd PE | 12.88 |
4.2 Price Multiples
NOK's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NOK is cheaper than 83.67% of the companies in the same industry.
73.47% of the companies in the same industry are more expensive than NOK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.24 | ||
| EV/EBITDA | 8.46 |
4.3 Compensation for Growth
The decent profitability rating of NOK may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.3
EPS Next 2Y-2.97%
EPS Next 3Y0.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.96%, 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 3.60. NOK pays more dividend than 87.76% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, NOK pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
5.2 History
The dividend of NOK has a limited annual growth rate of 5.44%.
NOK has been paying a dividend for at least 10 years, so it has 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%
5.34
-0.02 (-0.37%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners35.57%
Inst Owner Change14.42%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap28.78B
Analysts70.56
Price Target5.58 (4.49%)
Short Float %0.63%
Short Ratio1.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.96% |
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)-2.81%
Min EPS beat(2)-36.04%
Max EPS beat(2)30.42%
EPS beat(4)2
Avg EPS beat(4)-4.72%
Min EPS beat(4)-36.04%
Max EPS beat(4)30.42%
EPS beat(8)3
Avg EPS beat(8)-5.4%
EPS beat(12)6
Avg EPS beat(12)-2.5%
EPS beat(16)10
Avg EPS beat(16)5.92%
Revenue beat(2)1
Avg Revenue beat(2)-4.78%
Min Revenue beat(2)-10.73%
Max Revenue beat(2)1.17%
Revenue beat(4)1
Avg Revenue beat(4)-7.59%
Min Revenue beat(4)-11.71%
Max Revenue beat(4)1.17%
Revenue beat(8)1
Avg Revenue beat(8)-9%
Revenue beat(12)3
Avg Revenue beat(12)-5.77%
Revenue beat(16)4
Avg Revenue beat(16)-4.8%
PT rev (1m)0.23%
PT rev (3m)16.7%
EPS NQ rev (1m)-6.37%
EPS NQ rev (3m)-13.06%
EPS NY rev (1m)-1.9%
EPS NY rev (3m)-3.16%
Revenue NQ rev (1m)1.6%
Revenue NQ rev (3m)4.31%
Revenue NY rev (1m)3.96%
Revenue NY rev (3m)5.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.43 | ||
| Fwd PE | 12.88 | ||
| P/S | 1.33 | ||
| P/FCF | 14.24 | ||
| P/OCF | 10.99 | ||
| P/B | 1.23 | ||
| P/tB | 2.02 | ||
| EV/EBITDA | 8.46 |
EPS(TTM)0.37
EY6.93%
EPS(NY)0.41
Fwd EY7.76%
FCF(TTM)0.37
FCFY7.02%
OCF(TTM)0.49
OCFY9.1%
SpS4.02
BVpS4.35
TBVpS2.64
PEG (NY)N/A
PEG (5Y)1.3
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)5.27%
EPS 3Y1.77%
EPS 5Y11.14%
EPS Q2Q%-70.72%
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%-13.08%
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 Year19.74%
EBIT Next 3Y12.13%
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%