NOKIA OYJ (NOKIA.PA) Stock Fundamental Analysis
EPA:NOKIA - Euronext Paris - Matif - FI0009000681 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to NOKIA. NOKIA was compared to 25 industry peers in the Communications Equipment industry. NOKIA has an average financial health and profitability rating. 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
NOKIA had positive earnings in the past year.
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 Return On Assets of 2.00%. This is in the better half of the industry: NOKIA outperforms 72.00% of its industry peers.
NOKIA's Return On Equity of 3.79% is fine compared to the rest of the industry. NOKIA outperforms 72.00% of its industry peers.
NOKIA's Return On Invested Capital of 3.60% is fine compared to the rest of the industry. NOKIA outperforms 64.00% 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 9.30%.
| 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
NOKIA's Profit Margin of 4.10% is fine compared to the rest of the industry. NOKIA outperforms 72.00% of its industry peers.
NOKIA's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 8.08%, NOKIA is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
In the last couple of years the Operating Margin of NOKIA has grown nicely.
NOKIA has a Gross Margin (44.23%) which is in line with its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
The debt/assets ratio for NOKIA has been reduced compared to a year ago.
2.2 Solvency
NOKIA has an Altman-Z score of 2.10. 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 2.10, NOKIA is in line with its industry, outperforming 60.00% 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.
NOKIA has a better Debt to FCF ratio (2.83) than 64.00% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that NOKIA is not too dependend on debt financing.
NOKIA has a better Debt to Equity ratio (0.14) than 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 2.83 | ||
| Altman-Z | 2.1 |
ROIC/WACC0.53
WACC6.84%
2.3 Liquidity
NOKIA has a Current Ratio of 1.36. This is a normal value and indicates that NOKIA is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of NOKIA (1.36) is worse than 64.00% of its industry peers.
A Quick Ratio of 1.15 indicates that NOKIA should not have too much problems paying its short term obligations.
NOKIA has a Quick ratio of 1.15. This is in the lower half of the industry: NOKIA underperforms 60.00% 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%.
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.
The Revenue has decreased by -9.02% in the past year.
NOKIA shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.79% yearly.
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 0.13% 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 Year6.48%
Revenue Next 2Y4.93%
Revenue Next 3Y3.99%
Revenue Next 5Y2.41%
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 12.93, NOKIA is valued correctly.
Based on the Price/Earnings ratio, NOKIA is valued cheaper than 88.00% of the companies in the same industry.
NOKIA is valuated cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.62, the valuation of NOKIA can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NOKIA indicates a rather cheap valuation: NOKIA is cheaper than 92.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 35.19. NOKIA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.93 | ||
| Fwd PE | 11.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NOKIA is valued a bit cheaper than 80.00% 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 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.87 | ||
| EV/EBITDA | 7.48 |
4.3 Compensation for Growth
The decent profitability rating of NOKIA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.16
EPS Next 2Y-2.97%
EPS Next 3Y0.5%
5. Dividend
5.1 Amount
NOKIA has a Yearly Dividend Yield of 1.95%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.16, NOKIA pays a bit more dividend than its industry peers.
NOKIA's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
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.
NOKIA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP91.46%
EPS Next 2Y-2.97%
EPS Next 3Y0.5%
EPA:NOKIA (7/14/2025, 4:16:15 PM)
4.266
-0.01 (-0.14%)
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 Cap22.99B
Analysts70.81
Price Target4.95 (16.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
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%
PT rev (3m)-3.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.56%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.65%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)1.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.93 | ||
| Fwd PE | 11.62 | ||
| P/S | 1.2 | ||
| P/FCF | 12.87 | ||
| P/OCF | 9.93 | ||
| P/B | 1.11 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | 7.48 |
EPS(TTM)0.33
EY7.74%
EPS(NY)0.37
Fwd EY8.61%
FCF(TTM)0.33
FCFY7.77%
OCF(TTM)0.43
OCFY10.07%
SpS3.56
BVpS3.85
TBVpS2.34
PEG (NY)N/A
PEG (5Y)1.16
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 | 2.1 |
F-Score6
WACC6.84%
ROIC/WACC0.53
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 5Y0.13%
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 5Y2.41%
EBIT growth 1Y-6.92%
EBIT growth 3Y-7.82%
EBIT growth 5Y9.88%
EBIT Next Year11.92%
EBIT Next 3Y12.52%
EBIT Next 5Y7.08%
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%