NOKIA OYJ (NOKIA.PA) Stock Fundamental Analysis
Europe - EPA:NOKIA - FI0009000681 - Common Stock
3.839 EUR
-0.06 (-1.59%)
We assign a fundamental rating of 5 out of 10 to NOKIA. NOKIA was compared to 27 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 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.
In the past 5 years NOKIA always reported a positive cash flow from operatings.
1.2 Ratios
NOKIA has a Return On Assets of 2.83%. This is in the better half of the industry: NOKIA outperforms 62.96% of its industry peers.
NOKIA has a better Return On Equity (5.17%) than 62.96% of its industry peers.
NOKIA's Return On Invested Capital of 2.89% is in line compared to the rest of the industry. NOKIA outperforms 59.26% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NOKIA is significantly below the industry average of 12.67%.
| 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%, NOKIA is doing good in the industry, outperforming 66.67% of the companies in the same industry.
NOKIA's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 6.21%, NOKIA is doing good in the industry, outperforming 62.96% 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 | 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.
Compared to 1 year ago, NOKIA has less shares outstanding
NOKIA has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, NOKIA has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.20 indicates that NOKIA is not a great score, but indicates only limited risk for bankruptcy at the moment.
NOKIA's Altman-Z score of 2.20 is in line compared to the rest of the industry. NOKIA outperforms 59.26% 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.
NOKIA's Debt to FCF ratio of 2.77 is fine compared to the rest of the industry. NOKIA outperforms 62.96% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that NOKIA is not too dependend on debt financing.
NOKIA's Debt to Equity ratio of 0.16 is fine compared to the rest of the industry. NOKIA outperforms 74.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 2.77 | ||
| Altman-Z | 2.2 |
ROIC/WACC0.42
WACC6.87%
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 in line with its industry peers.
NOKIA has a Quick Ratio of 1.21. 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 1.21. This is comparable to the rest of the industry: NOKIA outperforms 51.85% of its industry peers.
| 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.
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 -2.91%.
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)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 decrease in Earnings Per Share. The EPS will decrease by -0.36% on average per year.
NOKIA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.54% yearly.
EPS Next Y-28.57%
EPS Next 2Y-6.17%
EPS Next 3Y-1.25%
EPS Next 5Y-0.36%
Revenue Next Year3.51%
Revenue Next 2Y3.45%
Revenue Next 3Y3%
Revenue Next 5Y2.54%
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
NOKIA is valuated correctly with a Price/Earnings ratio of 12.38.
Based on the Price/Earnings ratio, NOKIA is valued cheaply inside the industry as 85.19% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of NOKIA to the average of the S&P500 Index (27.30), we can say NOKIA is valued rather cheaply.
The Price/Forward Earnings ratio is 11.18, which indicates a very decent valuation of NOKIA.
Based on the Price/Forward Earnings ratio, NOKIA is valued cheaper than 96.30% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of NOKIA to the average of the S&P500 Index (22.73), we can say NOKIA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.38 | ||
| Fwd PE | 11.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NOKIA is valued a bit cheaper than 77.78% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NOKIA is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.94 | ||
| 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)1.11
EPS Next 2Y-6.17%
EPS Next 3Y-1.25%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.58%, NOKIA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.85, NOKIA pays a bit more dividend than its industry peers.
NOKIA's Dividend Yield is a higher than the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
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 69.51% of its income as dividend. This is not a sustainable payout ratio.
NOKIA'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-6.17%
EPS Next 3Y-1.25%
EPA:NOKIA (9/12/2025, 7:00:00 PM)
3.839
-0.06 (-1.59%)
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 Cap20.65B
Analysts70
Price Target4.61 (20.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
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)-2.94%
PT rev (3m)-6.88%
EPS NQ rev (1m)-2.48%
EPS NQ rev (3m)-19.76%
EPS NY rev (1m)-13.92%
EPS NY rev (3m)-13.92%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)0.75%
Revenue NY rev (1m)-0.65%
Revenue NY rev (3m)-2.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.38 | ||
| Fwd PE | 11.18 | ||
| P/S | 1.07 | ||
| P/FCF | 13.94 | ||
| P/OCF | 10.14 | ||
| P/B | 1.05 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 7.95 |
EPS(TTM)0.31
EY8.08%
EPS(NY)0.34
Fwd EY8.94%
FCF(TTM)0.28
FCFY7.17%
OCF(TTM)0.38
OCFY9.86%
SpS3.58
BVpS3.67
TBVpS2.26
PEG (NY)N/A
PEG (5Y)1.11
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 | 2.2 |
F-Score8
WACC6.87%
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-28.57%
EPS Next 2Y-6.17%
EPS Next 3Y-1.25%
EPS Next 5Y-0.36%
Revenue 1Y (TTM)-2.91%
Revenue growth 3Y-4.69%
Revenue growth 5Y-3.79%
Sales Q2Q%1.79%
Revenue Next Year3.51%
Revenue Next 2Y3.45%
Revenue Next 3Y3%
Revenue Next 5Y2.54%
EBIT growth 1Y-26.17%
EBIT growth 3Y-7.82%
EBIT growth 5Y9.88%
EBIT Next Year11.92%
EBIT Next 3Y12.52%
EBIT Next 5Y8.37%
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%