NOKIA OYJ (NOKIA.PA) Stock Fundamental Analysis
EPA:NOKIA - Euronext Paris - Matif - FI0009000681 - Common Stock - Currency: EUR
NOKIA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 23 industry peers in the Communications Equipment industry. NOKIA has an average financial health and profitability rating. 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.
NOKIA had a positive operating cash flow in the past year.
NOKIA had positive earnings in 4 of the past 5 years.
Each year in the past 5 years NOKIA had a positive operating cash flow.
1.2 Ratios
NOKIA has a better Return On Assets (2.00%) than 78.26% of its industry peers.
Looking at the Return On Equity, with a value of 3.79%, NOKIA is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
NOKIA has a better Return On Invested Capital (3.60%) than 69.57% of its industry peers.
NOKIA had an Average Return On Invested Capital over the past 3 years of 4.03%. This is below the industry average of 8.47%.
| 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
The Profit Margin of NOKIA (4.10%) is better than 78.26% of its industry peers.
NOKIA's Profit Margin has improved in the last couple of years.
The Operating Margin of NOKIA (8.08%) is better than 73.91% of its industry peers.
NOKIA's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 44.23%, NOKIA perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
NOKIA'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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NOKIA is destroying value.
NOKIA has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, NOKIA has less shares outstanding
Compared to 1 year ago, NOKIA has an improved debt to assets ratio.
2.2 Solvency
NOKIA has an Altman-Z score of 2.14. This is not the best score and indicates that NOKIA is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.14, NOKIA is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
NOKIA has a debt to FCF ratio of 2.83. This is a good value and a sign of high solvency as NOKIA would need 2.83 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.83, NOKIA is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
NOKIA has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
NOKIA has a better Debt to Equity ratio (0.14) than 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 2.83 | ||
| Altman-Z | 2.14 |
ROIC/WACC0.52
WACC6.86%
2.3 Liquidity
A Current Ratio of 1.36 indicates that NOKIA should not have too much problems paying its short term obligations.
The Current ratio of NOKIA (1.36) is comparable to the rest of the industry.
NOKIA has a Quick Ratio of 1.15. This is a normal value and indicates that NOKIA is financially healthy and should not expect problems in meeting its short term obligations.
NOKIA has a Quick ratio of 1.15. This is comparable to the rest of the industry: NOKIA outperforms 47.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
NOKIA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.45%.
NOKIA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.14% yearly.
NOKIA shows a decrease in Revenue. In the last year, the revenue decreased by -9.02%.
Measured over the past years, NOKIA shows a decrease in Revenue. The Revenue has been decreasing by -3.79% on average per year.
EPS 1Y (TTM)6.45%
EPS 3Y1.77%
EPS 5Y11.14%
EPS Q2Q%-66.67%
Revenue 1Y (TTM)-9.02%
Revenue growth 3Y-4.69%
Revenue growth 5Y-3.79%
Sales Q2Q%-5.94%
3.2 Future
Based on estimates for the next years, NOKIA will show a small growth in Earnings Per Share. The EPS will grow by 0.49% on average per year.
The Revenue is expected to grow by 2.77% on average over the next years.
EPS Next Y-17.02%
EPS Next 2Y-2.97%
EPS Next 3Y0.5%
EPS Next 5Y0.49%
Revenue Next Year6.48%
Revenue Next 2Y4.93%
Revenue Next 3Y3.99%
Revenue Next 5Y2.77%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 13.75, the valuation of NOKIA can be described as correct.
91.30% of the companies in the same industry are more expensive than NOKIA, based on the Price/Earnings ratio.
NOKIA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.32.
A Price/Forward Earnings ratio of 12.36 indicates a correct valuation of NOKIA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NOKIA indicates a rather cheap valuation: NOKIA is cheaper than 91.30% of the companies listed in the same industry.
NOKIA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.75 | ||
| Fwd PE | 12.36 |
4.2 Price Multiples
NOKIA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NOKIA is cheaper than 73.91% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NOKIA is valued a bit cheaper than 69.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.68 | ||
| EV/EBITDA | 7.95 |
4.3 Compensation for Growth
The decent profitability rating of NOKIA 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
With a Yearly Dividend Yield of 3.06%, NOKIA has a reasonable but not impressive dividend return.
NOKIA's Dividend Yield is a higher than the industry average which is at 5.07.
Compared to an average S&P500 Dividend Yield of 2.40, NOKIA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
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
NOKIA pays out 91.46% of its income as dividend. This is not a sustainable payout ratio.
The dividend of NOKIA 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%
EPA:NOKIA (6/16/2025, 2:33:55 PM)
4.537
+0.04 (+0.89%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners34.44%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap24.45B
Analysts70.56
Price Target4.95 (9.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.06% |
Yearly Dividend0.13
Dividend Growth(5Y)5.44%
DP91.46%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.62%
Min EPS beat(2)-27.18%
Max EPS beat(2)30.42%
EPS beat(4)2
Avg EPS beat(4)-2.5%
Min EPS beat(4)-27.18%
Max EPS beat(4)30.42%
EPS beat(8)3
Avg EPS beat(8)-4.29%
EPS beat(12)6
Avg EPS beat(12)-1.77%
EPS beat(16)10
Avg EPS beat(16)6.47%
Revenue beat(2)1
Avg Revenue beat(2)-1.27%
Min Revenue beat(2)-3.71%
Max Revenue beat(2)1.17%
Revenue beat(4)1
Avg Revenue beat(4)-5.83%
Min Revenue beat(4)-11.71%
Max Revenue beat(4)1.17%
Revenue beat(8)1
Avg Revenue beat(8)-8.12%
Revenue beat(12)3
Avg Revenue beat(12)-5.18%
Revenue beat(16)4
Avg Revenue beat(16)-4.36%
PT rev (1m)0.26%
PT rev (3m)-0.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.44%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.75 | ||
| Fwd PE | 12.36 | ||
| P/S | 1.28 | ||
| P/FCF | 13.68 | ||
| P/OCF | 10.56 | ||
| P/B | 1.18 | ||
| P/tB | 1.94 | ||
| EV/EBITDA | 7.95 |
EPS(TTM)0.33
EY7.27%
EPS(NY)0.37
Fwd EY8.09%
FCF(TTM)0.33
FCFY7.31%
OCF(TTM)0.43
OCFY9.47%
SpS3.56
BVpS3.85
TBVpS2.34
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 | 2.14 |
F-Score6
WACC6.86%
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)6.45%
EPS 3Y1.77%
EPS 5Y11.14%
EPS Q2Q%-66.67%
EPS Next Y-17.02%
EPS Next 2Y-2.97%
EPS Next 3Y0.5%
EPS Next 5Y0.49%
Revenue 1Y (TTM)-9.02%
Revenue growth 3Y-4.69%
Revenue growth 5Y-3.79%
Sales Q2Q%-5.94%
Revenue Next Year6.48%
Revenue Next 2Y4.93%
Revenue Next 3Y3.99%
Revenue Next 5Y2.77%
EBIT growth 1Y-6.92%
EBIT growth 3Y-7.82%
EBIT growth 5Y9.88%
EBIT Next Year11.92%
EBIT Next 3Y12.52%
EBIT Next 5Y7.47%
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%