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. Both the profitability and the financial health of NOK get a neutral evaluation. Nothing too spectacular is happening here. NOK has a bad growth rate and is valued cheaply. These ratings could make NOK a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year NOK was profitable.
NOK had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 2.83%, NOK is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
With a decent Return On Equity value of 5.17%, NOK is doing good in the industry, outperforming 70.83% of the companies in the same industry.
The Return On Invested Capital of NOK (2.89%) is comparable to the rest of the industry.
NOK had an Average Return On Invested Capital over the past 3 years of 4.03%. This is significantly below the industry average of 13.54%.
| 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.
Looking at the Operating Margin, with a value of 6.21%, NOK is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
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 58.33% 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.
The number of shares outstanding for NOK has been reduced compared to 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
NOK has an Altman-Z score of 2.15. 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 2.15. This is in the better half of the industry: NOK outperforms 66.67% of its industry peers.
The Debt to FCF ratio of NOK is 2.77, which is a good value as it means it would take NOK, 2.77 years of fcf income to pay off all of its debts.
NOK has a better Debt to FCF ratio (2.77) than 60.42% 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 | 2.15 |
ROIC/WACC0.42
WACC6.93%
2.3 Liquidity
NOK has a Current Ratio of 1.46. 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 1.46, NOK is doing worse than 68.75% 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.
Looking at the Quick ratio, with a value of 1.21, NOK is doing worse than 60.42% of the companies in the same 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 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.
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)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
The Earnings Per Share is expected to decrease by -0.38% 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 2.52% yearly.
EPS Next Y-17.02%
EPS Next 2Y-2.97%
EPS Next 3Y0.5%
EPS Next 5Y-0.38%
Revenue Next Year4.19%
Revenue Next 2Y3.77%
Revenue Next 3Y3.24%
Revenue Next 5Y2.52%
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
NOK is valuated reasonably with a Price/Earnings ratio of 11.74.
Based on the Price/Earnings ratio, NOK is valued cheaper than 83.33% of the companies in the same industry.
NOK is valuated cheaply when we compare the Price/Earnings ratio to 26.86, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.88, which indicates a very decent valuation of NOK.
91.67% of the companies in the same industry are more expensive than NOK, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.94, NOK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.74 | ||
| Fwd PE | 9.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NOK is valued cheaper than 89.58% 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 77.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.17 | ||
| EV/EBITDA | 7.31 |
4.3 Compensation for Growth
The decent profitability rating of NOK 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 3.94%, NOK has a reasonable but not impressive dividend return.
The stock price of NOK dropped by -20.60% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 3.80, NOK pays a better dividend. On top of this NOK pays more dividend than 91.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, NOK pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
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-2.97%
EPS Next 3Y0.5%
NYSE:NOK (8/21/2025, 10:08:10 AM)
4.225
-0.02 (-0.35%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners34.44%
Inst Owner Change0.29%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap22.73B
Analysts70.81
Price Target5.32 (25.92%)
Short Float %0.75%
Short Ratio1.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.94% |
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)-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)-6.59%
PT rev (3m)-4.65%
EPS NQ rev (1m)-18.54%
EPS NQ rev (3m)-20.26%
EPS NY rev (1m)0.17%
EPS NY rev (3m)0.17%
Revenue NQ rev (1m)-3.56%
Revenue NQ rev (3m)0.73%
Revenue NY rev (1m)-2.15%
Revenue NY rev (3m)-2.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.74 | ||
| Fwd PE | 9.88 | ||
| P/S | 1.01 | ||
| P/FCF | 13.17 | ||
| P/OCF | 9.58 | ||
| P/B | 0.99 | ||
| P/tB | 1.61 | ||
| EV/EBITDA | 7.31 |
EPS(TTM)0.36
EY8.52%
EPS(NY)0.43
Fwd EY10.12%
FCF(TTM)0.32
FCFY7.59%
OCF(TTM)0.44
OCFY10.44%
SpS4.17
BVpS4.27
TBVpS2.63
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 | 2.15 |
F-Score8
WACC6.93%
ROIC/WACC0.42
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-17.02%
EPS Next 2Y-2.97%
EPS Next 3Y0.5%
EPS Next 5Y-0.38%
Revenue 1Y (TTM)-2.91%
Revenue growth 3Y-4.69%
Revenue growth 5Y-3.79%
Sales Q2Q%1.79%
Revenue Next Year4.19%
Revenue Next 2Y3.77%
Revenue Next 3Y3.24%
Revenue Next 5Y2.52%
EBIT growth 1Y-26.17%
EBIT growth 3Y-7.82%
EBIT growth 5Y9.88%
EBIT Next Year11.92%
EBIT Next 3Y12.52%
EBIT Next 5Y8.35%
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%