NOKIA CORP-SPON ADR (NOK) Stock Fundamental Analysis
USA - NYSE:NOK - US6549022043 - ADR
4.82 USD
+0.01 (+0.21%)
4.83 USD
+0.01 (+0.21%)
Overall NOK gets a fundamental rating of 5 out of 10. We evaluated NOK against 48 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.
NOK had positive earnings in 4 of the past 5 years.
NOK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NOK has a Return On Assets of 2.83%. This is in the better half of the industry: NOK outperforms 62.50% of its industry peers.
NOK's Return On Equity of 5.17% is fine compared to the rest of the industry. NOK outperforms 68.75% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.89%, NOK is in line with its industry, outperforming 58.33% 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 13.71%.
| 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
The Profit Margin of NOK (5.30%) is better than 66.67% of its industry peers.
NOK's Profit Margin has improved in the last couple of years.
NOK has a Operating Margin of 6.21%. This is in the better half of the industry: NOK outperforms 66.67% of its industry peers.
NOK's Operating Margin has improved in the last couple of years.
The Gross Margin of NOK (44.23%) is better than 60.42% of its industry peers.
In the last couple of years the Gross Margin of NOK has grown nicely.
| 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
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.
The number of shares outstanding for NOK has been reduced compared to 5 years ago.
Compared to 1 year ago, NOK has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.24 indicates that NOK is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.24, NOK perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 2.77, NOK is in line with its industry, outperforming 56.25% of the companies in the same industry.
A Debt/Equity ratio of 0.16 indicates that NOK is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.16, NOK perfoms like the industry average, outperforming 52.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 2.77 | ||
| Altman-Z | 2.24 |
ROIC/WACC0.41
WACC7.01%
2.3 Liquidity
A Current Ratio of 1.46 indicates that NOK should not have too much problems paying its short term obligations.
The Current ratio of NOK (1.46) is worse than 70.83% of its industry peers.
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.
With a Quick ratio value of 1.21, NOK is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
| 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 3.33%.
NOK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.14% yearly.
Looking at the last year, NOK shows a decrease in Revenue. The Revenue has decreased by -2.91% in the last year.
The Revenue has been decreasing by -3.79% on average over the past years.
EPS 1Y (TTM)3.33%
EPS 3Y1.77%
EPS 5Y11.14%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)-2.91%
Revenue growth 3Y-4.69%
Revenue growth 5Y-3.79%
Sales Q2Q%1.79%
3.2 Future
NOK is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.36% yearly.
The Revenue is expected to grow by 2.54% on average over the next years.
EPS Next Y-30.06%
EPS Next 2Y-6.46%
EPS Next 3Y-1.18%
EPS Next 5Y-0.36%
Revenue Next Year3.49%
Revenue Next 2Y3.45%
Revenue Next 3Y3.05%
Revenue Next 5Y2.54%
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 13.39, NOK is valued correctly.
81.25% of the companies in the same industry are more expensive than NOK, based on the Price/Earnings ratio.
NOK's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.79.
Based on the Price/Forward Earnings ratio of 12.03, the valuation of NOK can be described as correct.
Based on the Price/Forward Earnings ratio, NOK is valued cheaper than 87.50% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.21. NOK is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 12.03 |
4.2 Price Multiples
NOK's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NOK is cheaper than 85.42% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NOK is valued a bit cheaper than 77.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.91 | ||
| EV/EBITDA | 8.42 |
4.3 Compensation for Growth
The decent profitability rating of NOK may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.2
EPS Next 2Y-6.46%
EPS Next 3Y-1.18%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.50%, 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 3.67. NOK pays more dividend than 89.58% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, NOK pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
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
69.51% of the earnings are spent on dividend by NOK. This is not a sustainable payout ratio.
NOK's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP69.51%
EPS Next 2Y-6.46%
EPS Next 3Y-1.18%
4.82
+0.01 (+0.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners36.69%
Inst Owner Change0.31%
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap25.93B
Analysts70
Price Target5.57 (15.56%)
Short Float %0.92%
Short Ratio1.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
Yearly Dividend0.15
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)-25.98%
Min EPS beat(2)-27.18%
Max EPS beat(2)-24.77%
EPS beat(4)1
Avg EPS beat(4)-9.74%
Min EPS beat(4)-27.18%
Max EPS beat(4)30.42%
EPS beat(8)3
Avg EPS beat(8)-6.28%
EPS beat(12)5
Avg EPS beat(12)-5%
EPS beat(16)9
Avg EPS beat(16)-1.1%
Revenue beat(2)0
Avg Revenue beat(2)-5.77%
Min Revenue beat(2)-7.83%
Max Revenue beat(2)-3.71%
Revenue beat(4)1
Avg Revenue beat(4)-5.52%
Min Revenue beat(4)-11.71%
Max Revenue beat(4)1.17%
Revenue beat(8)1
Avg Revenue beat(8)-8.3%
Revenue beat(12)2
Avg Revenue beat(12)-5.98%
Revenue beat(16)3
Avg Revenue beat(16)-4.86%
PT rev (1m)3.61%
PT rev (3m)-2.22%
EPS NQ rev (1m)0.79%
EPS NQ rev (3m)-19.62%
EPS NY rev (1m)-2.09%
EPS NY rev (3m)-15.57%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.75%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-2.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.39 | ||
| Fwd PE | 12.03 | ||
| P/S | 1.15 | ||
| P/FCF | 14.91 | ||
| P/OCF | 10.85 | ||
| P/B | 1.12 | ||
| P/tB | 1.82 | ||
| EV/EBITDA | 8.42 |
EPS(TTM)0.36
EY7.47%
EPS(NY)0.4
Fwd EY8.31%
FCF(TTM)0.32
FCFY6.71%
OCF(TTM)0.44
OCFY9.22%
SpS4.2
BVpS4.3
TBVpS2.65
PEG (NY)N/A
PEG (5Y)1.2
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 | 2.24 |
F-Score8
WACC7.01%
ROIC/WACC0.41
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)3.33%
EPS 3Y1.77%
EPS 5Y11.14%
EPS Q2Q%-33.33%
EPS Next Y-30.06%
EPS Next 2Y-6.46%
EPS Next 3Y-1.18%
EPS Next 5Y-0.36%
Revenue 1Y (TTM)-2.91%
Revenue growth 3Y-4.69%
Revenue growth 5Y-3.79%
Sales Q2Q%1.79%
Revenue Next Year3.49%
Revenue Next 2Y3.45%
Revenue Next 3Y3.05%
Revenue Next 5Y2.54%
EBIT growth 1Y-26.17%
EBIT growth 3Y-7.82%
EBIT growth 5Y9.88%
EBIT Next Year10.01%
EBIT Next 3Y12.49%
EBIT Next 5Y8.37%
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%