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 26 industry peers in the Communications Equipment industry. NOKIA has only an average score on both its financial health and profitability. NOKIA has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year NOKIA was profitable.
NOKIA had a positive operating cash flow in the past year.
Of the past 5 years NOKIA 4 years were profitable.
Each year in the past 5 years NOKIA had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.83%, NOKIA is in line with its industry, outperforming 57.69% of the companies in the same industry.
NOKIA has a Return On Equity of 5.17%. This is comparable to the rest of the industry: NOKIA outperforms 57.69% of its industry peers.
NOKIA has a Return On Invested Capital of 2.89%. This is comparable to the rest of the industry: NOKIA outperforms 53.85% of its industry peers.
NOKIA had an Average Return On Invested Capital over the past 3 years of 4.03%. This is significantly below the industry average of 10.22%.
| 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 Profit Margin value of 5.30%, NOKIA perfoms like the industry average, outperforming 57.69% of the companies in the same industry.
In the last couple of years the Profit Margin of NOKIA has grown nicely.
The Operating Margin of NOKIA (6.21%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of NOKIA has grown nicely.
NOKIA has a Gross Margin of 44.23%. This is comparable to the rest of the industry: NOKIA outperforms 42.31% of its industry peers.
In the last couple of years the Gross Margin of NOKIA 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
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
NOKIA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.13 indicates that NOKIA is not a great score, but indicates only limited risk for bankruptcy at the moment.
NOKIA has a better Altman-Z score (2.13) than 65.38% of its industry peers.
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.
The Debt to FCF ratio of NOKIA (2.77) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.16 indicates that NOKIA is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.16, NOKIA is doing good in the industry, outperforming 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 2.77 | ||
| Altman-Z | 2.13 |
ROIC/WACC0.43
WACC6.66%
2.3 Liquidity
A Current Ratio of 1.46 indicates that NOKIA should not have too much problems paying its short term obligations.
The Current ratio of NOKIA (1.46) is worse than 61.54% of its industry peers.
A Quick Ratio of 1.21 indicates that NOKIA should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.21, NOKIA perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.33% over the past year.
The Earnings Per Share has been growing by 11.14% on average over the past years. This is quite good.
Looking at the last year, NOKIA 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
Based on estimates for the next years, NOKIA will show a small growth in Earnings Per Share. The EPS will grow by 0.13% on average per year.
Based on estimates for the next years, NOKIA will show a small growth in Revenue. The Revenue will grow by 2.41% on average per year.
EPS Next Y-17.02%
EPS Next 2Y-2.97%
EPS Next 3Y0.5%
EPS Next 5Y0.13%
Revenue Next Year4.19%
Revenue Next 2Y3.77%
Revenue Next 3Y3.24%
Revenue Next 5Y2.41%
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
Based on the Price/Earnings ratio of 11.48, the valuation of NOKIA can be described as reasonable.
NOKIA's Price/Earnings ratio is rather cheap when compared to the industry. NOKIA is cheaper than 80.77% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.41. NOKIA is valued rather cheaply when compared to this.
NOKIA is valuated reasonably with a Price/Forward Earnings ratio of 9.69.
Based on the Price/Forward Earnings ratio, NOKIA is valued cheaper than 88.46% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NOKIA to the average of the S&P500 Index (33.87), we can say NOKIA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.48 | ||
| Fwd PE | 9.69 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NOKIA is valued a bit cheaper than 73.08% of the companies in the same industry.
NOKIA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NOKIA is cheaper than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.93 | ||
| EV/EBITDA | 7.07 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.03
EPS Next 2Y-2.97%
EPS Next 3Y0.5%
5. Dividend
5.1 Amount
NOKIA has a Yearly Dividend Yield of 3.98%. Purely for dividend investing, there may be better candidates out there.
The stock price of NOKIA dropped by -23.31% 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 6.27, NOKIA pays a better dividend. On top of this NOKIA pays more dividend than 92.31% of the companies listed in the same industry.
NOKIA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
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.
NOKIA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP69.51%
EPS Next 2Y-2.97%
EPS Next 3Y0.5%
EPA:NOKIA (8/12/2025, 5:28:53 PM)
3.559
+0.02 (+0.54%)
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 Cap19.14B
Analysts70.81
Price Target4.61 (29.53%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
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)-6.86%
PT rev (3m)-6.62%
EPS NQ rev (1m)-15.94%
EPS NQ rev (3m)-17.72%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-3.42%
Revenue NQ rev (3m)0.88%
Revenue NY rev (1m)-2.15%
Revenue NY rev (3m)-2.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.48 | ||
| Fwd PE | 9.69 | ||
| P/S | 0.99 | ||
| P/FCF | 12.93 | ||
| P/OCF | 9.4 | ||
| P/B | 0.97 | ||
| P/tB | 1.58 | ||
| EV/EBITDA | 7.07 |
EPS(TTM)0.31
EY8.71%
EPS(NY)0.37
Fwd EY10.32%
FCF(TTM)0.28
FCFY7.74%
OCF(TTM)0.38
OCFY10.64%
SpS3.58
BVpS3.67
TBVpS2.26
PEG (NY)N/A
PEG (5Y)1.03
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 | 2.13 |
F-Score8
WACC6.66%
ROIC/WACC0.43
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 5Y0.13%
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 5Y2.41%
EBIT growth 1Y-26.17%
EBIT growth 3Y-7.82%
EBIT growth 5Y9.88%
EBIT Next Year11.92%
EBIT Next 3Y12.52%
EBIT Next 5Y7.08%
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%