NOKIA OYJ (NOKIA.PA) Stock Fundamental Analysis
Europe - EPA:NOKIA - FI0009000681 - Common Stock
4.867 EUR
-0.02 (-0.39%)
NOKIA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 29 industry peers in the Communications Equipment industry. Both the profitability and the financial health of NOKIA get a neutral evaluation. Nothing too spectacular is happening here. NOKIA is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year NOKIA was profitable.
In the past year NOKIA had a positive cash flow from operations.
NOKIA had positive earnings in 4 of the past 5 years.
NOKIA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NOKIA has a better Return On Assets (2.83%) than 65.52% of its industry peers.
With a decent Return On Equity value of 5.17%, NOKIA is doing good in the industry, outperforming 65.52% of the companies in the same industry.
NOKIA has a better Return On Invested Capital (2.89%) than 62.07% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NOKIA is significantly below the industry average of 11.63%.
| 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
NOKIA has a Profit Margin of 5.30%. This is in the better half of the industry: NOKIA outperforms 68.97% of its industry peers.
In the last couple of years the Profit Margin of NOKIA has grown nicely.
The Operating Margin of NOKIA (6.21%) is better than 65.52% of its industry peers.
In the last couple of years the Operating Margin of NOKIA has grown nicely.
The Gross Margin of NOKIA (44.23%) is comparable to the rest of the industry.
NOKIA's Gross Margin has improved in the last couple of years.
| 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
NOKIA 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 NOKIA has been reduced compared to 1 year ago.
Compared to 5 years ago, NOKIA has less shares outstanding
NOKIA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.39 indicates that NOKIA is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.39, NOKIA perfoms like the industry average, outperforming 51.72% of the companies in the same industry.
NOKIA has a debt to FCF ratio of 2.77. This is a good value and a sign of high solvency as NOKIA would need 2.77 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.77, NOKIA is doing good in the industry, outperforming 68.97% of the companies in the same industry.
NOKIA has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
NOKIA has a better Debt to Equity ratio (0.16) than 75.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 2.77 | ||
| Altman-Z | 2.39 |
ROIC/WACC0.41
WACC7.02%
2.3 Liquidity
A Current Ratio of 1.46 indicates that NOKIA should not have too much problems paying its short term obligations.
NOKIA has a Current ratio (1.46) which is comparable to the rest of the industry.
A Quick Ratio of 1.21 indicates that NOKIA should not have too much problems paying its short term obligations.
NOKIA has a Quick ratio of 1.21. This is comparable to the rest of the industry: NOKIA outperforms 44.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
NOKIA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.33%.
Measured over the past years, NOKIA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.14% on average per year.
NOKIA shows a decrease in Revenue. In the last year, the revenue decreased by -2.91%.
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
NOKIA is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.04% yearly.
NOKIA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.53% yearly.
EPS Next Y-30.06%
EPS Next 2Y-6.46%
EPS Next 3Y-1.18%
EPS Next 5Y-1.04%
Revenue Next Year3.32%
Revenue Next 2Y3.45%
Revenue Next 3Y3.06%
Revenue Next 5Y2.53%
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
With a Price/Earnings ratio of 15.70, NOKIA is valued correctly.
Based on the Price/Earnings ratio, NOKIA is valued cheaply inside the industry as 86.21% of the companies are valued more expensively.
NOKIA is valuated rather cheaply when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.26, the valuation of NOKIA can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NOKIA indicates a rather cheap valuation: NOKIA is cheaper than 86.21% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.94. NOKIA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.7 | ||
| Fwd PE | 14.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NOKIA indicates a somewhat cheap valuation: NOKIA is cheaper than 72.41% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, NOKIA is valued a bit cheaper than 62.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.68 | ||
| EV/EBITDA | 10.28 |
4.3 Compensation for Growth
The decent profitability rating of NOKIA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.41
EPS Next 2Y-6.46%
EPS Next 3Y-1.18%
5. Dividend
5.1 Amount
NOKIA has a Yearly Dividend Yield of 2.86%.
NOKIA's Dividend Yield is a higher than the industry average which is at 5.52.
NOKIA's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
5.2 History
The dividend of NOKIA has a limited annual growth rate of 5.44%.
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 NOKIA. This is not a sustainable payout ratio.
The Dividend Rate of NOKIA has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP69.51%
EPS Next 2Y-6.46%
EPS Next 3Y-1.18%
EPA:NOKIA (10/17/2025, 7:00:00 PM)
4.867
-0.02 (-0.39%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners36.69%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap26.18B
Analysts71.67
Price Target4.59 (-5.69%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
Yearly Dividend0.13
Dividend Growth(5Y)5.44%
DP69.51%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)-0.71%
PT rev (3m)-3.29%
EPS NQ rev (1m)-6.95%
EPS NQ rev (3m)-23.72%
EPS NY rev (1m)-2.09%
EPS NY rev (3m)-15.71%
Revenue NQ rev (1m)-0.64%
Revenue NQ rev (3m)-4.16%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-2.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.7 | ||
| Fwd PE | 14.26 | ||
| P/S | 1.36 | ||
| P/FCF | 17.68 | ||
| P/OCF | 12.86 | ||
| P/B | 1.33 | ||
| P/tB | 2.16 | ||
| EV/EBITDA | 10.28 |
EPS(TTM)0.31
EY6.37%
EPS(NY)0.34
Fwd EY7.01%
FCF(TTM)0.28
FCFY5.66%
OCF(TTM)0.38
OCFY7.78%
SpS3.58
BVpS3.67
TBVpS2.26
PEG (NY)N/A
PEG (5Y)1.41
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 | 2.39 |
F-Score8
WACC7.02%
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-1.04%
Revenue 1Y (TTM)-2.91%
Revenue growth 3Y-4.69%
Revenue growth 5Y-3.79%
Sales Q2Q%1.79%
Revenue Next Year3.32%
Revenue Next 2Y3.45%
Revenue Next 3Y3.06%
Revenue Next 5Y2.53%
EBIT growth 1Y-26.17%
EBIT growth 3Y-7.82%
EBIT growth 5Y9.88%
EBIT Next Year10.01%
EBIT Next 3Y12.49%
EBIT Next 5Y8.23%
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%