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 49 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.
NOK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NOK has a better Return On Assets (2.00%) than 71.43% of its industry peers.
NOK has a Return On Equity of 3.79%. This is in the better half of the industry: NOK outperforms 71.43% of its industry peers.
The Return On Invested Capital of NOK (3.60%) is better than 67.35% of its industry peers.
NOK had an Average Return On Invested Capital over the past 3 years of 4.03%. This is significantly below the industry average of 11.12%.
| 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 has a better Profit Margin (4.10%) than 71.43% of its industry peers.
In the last couple of years the Profit Margin of NOK has grown nicely.
NOK has a Operating Margin of 8.08%. This is in the better half of the industry: NOK outperforms 73.47% of its industry peers.
In the last couple of years the Operating Margin of NOK has grown nicely.
Looking at the Gross Margin, with a value of 44.23%, NOK is in line with its industry, outperforming 55.10% of the companies in the same industry.
NOK'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
NOK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NOK has less shares outstanding than it did 1 year ago.
NOK has less shares outstanding than it did 5 years ago.
The debt/assets ratio for NOK has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.12 indicates that NOK is not a great score, but indicates 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 67.35% of the companies in the same industry.
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.
The Debt to Equity ratio of NOK (0.14) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 2.83 | ||
| Altman-Z | 2.12 |
ROIC/WACC0.51
WACC7%
2.3 Liquidity
A Current Ratio of 1.36 indicates that NOK should not have too much problems paying its short term obligations.
NOK's Current ratio of 1.36 is on the low side compared to the rest of the industry. NOK is outperformed by 73.47% of its industry peers.
A Quick Ratio of 1.15 indicates that NOK should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.15, NOK is doing worse than 61.22% of the companies in the same industry.
| 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 5.27% over the past year.
Measured over the past years, NOK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.14% on average per year.
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
NOK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.25% yearly.
NOK 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 Year6.14%
Revenue Next 2Y4.67%
Revenue Next 3Y3.65%
Revenue Next 5Y1.89%
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 13.68, NOK is valued correctly.
81.63% of the companies in the same industry are more expensive than NOK, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.22. NOK is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 12.14, which indicates a correct valuation of NOK.
NOK's Price/Forward Earnings ratio is rather cheap when compared to the industry. NOK is cheaper than 81.63% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NOK to the average of the S&P500 Index (20.86), we can say NOK is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.68 | ||
| Fwd PE | 12.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NOK is valued cheaper than 85.71% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NOK indicates a somewhat cheap valuation: NOK is cheaper than 79.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.42 | ||
| EV/EBITDA | 7.72 |
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
NOK has a Yearly Dividend Yield of 3.19%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.67, NOK pays a better dividend. On top of this NOK pays more dividend than 87.76% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, NOK pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
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.
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
NOK pays out 91.46% of its income as dividend. 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.
DP91.46%
EPS Next 2Y-2.97%
EPS Next 3Y0.5%
5.06
+0.07 (+1.4%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners35.57%
Inst Owner Change0.17%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap27.27B
Analysts70.56
Price Target5.85 (15.61%)
Short Float %0.74%
Short Ratio1.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
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)13.27%
PT rev (3m)24.57%
EPS NQ rev (1m)-5.67%
EPS NQ rev (3m)-11.92%
EPS NY rev (1m)-1.23%
EPS NY rev (3m)-3.22%
Revenue NQ rev (1m)1.1%
Revenue NQ rev (3m)2.92%
Revenue NY rev (1m)3.63%
Revenue NY rev (3m)4.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.68 | ||
| Fwd PE | 12.14 | ||
| P/S | 1.25 | ||
| P/FCF | 13.42 | ||
| P/OCF | 10.35 | ||
| P/B | 1.16 | ||
| P/tB | 1.9 | ||
| EV/EBITDA | 7.72 |
EPS(TTM)0.37
EY7.31%
EPS(NY)0.42
Fwd EY8.24%
FCF(TTM)0.38
FCFY7.45%
OCF(TTM)0.49
OCFY9.66%
SpS4.04
BVpS4.37
TBVpS2.66
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 | 2.12 |
F-Score6
WACC7%
ROIC/WACC0.51
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 Year6.14%
Revenue Next 2Y4.67%
Revenue Next 3Y3.65%
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%