NOKIA OYJ (1NOKIA.MI) Stock Fundamental Analysis
BIT:1NOKIA - Euronext Milan - FI0009000681 - Common Stock - Currency: EUR
1NOKIA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 25 industry peers in the Communications Equipment industry. 1NOKIA has an average financial health and profitability rating. 1NOKIA 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 1NOKIA was profitable.
In the past year 1NOKIA had a positive cash flow from operations.
Of the past 5 years 1NOKIA 4 years were profitable.
Each year in the past 5 years 1NOKIA had a positive operating cash flow.
1.2 Ratios
1NOKIA has a better Return On Assets (2.00%) than 68.00% of its industry peers.
Looking at the Return On Equity, with a value of 3.79%, 1NOKIA is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
1NOKIA's Return On Invested Capital of 3.60% is in line compared to the rest of the industry. 1NOKIA outperforms 56.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1NOKIA is significantly below the industry average of 10.12%.
| 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
Looking at the Profit Margin, with a value of 4.10%, 1NOKIA 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 Profit Margin of 1NOKIA has grown nicely.
1NOKIA has a Operating Margin of 8.08%. This is comparable to the rest of the industry: 1NOKIA outperforms 60.00% of its industry peers.
1NOKIA's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 44.23%, 1NOKIA is in line with its industry, outperforming 44.00% of the companies in the same industry.
In the last couple of years the Gross Margin of 1NOKIA has grown nicely.
| 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
1NOKIA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, 1NOKIA has less shares outstanding
Compared to 5 years ago, 1NOKIA has less shares outstanding
Compared to 1 year ago, 1NOKIA has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.13 indicates that 1NOKIA is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.13, 1NOKIA is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
The Debt to FCF ratio of 1NOKIA is 2.83, which is a good value as it means it would take 1NOKIA, 2.83 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.83, 1NOKIA is in line with its industry, outperforming 56.00% of the companies in the same industry.
A Debt/Equity ratio of 0.14 indicates that 1NOKIA is not too dependend on debt financing.
1NOKIA has a Debt to Equity ratio of 0.14. This is in the better half of the industry: 1NOKIA outperforms 68.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 2.83 | ||
| Altman-Z | 2.13 |
ROIC/WACC0.52
WACC6.87%
2.3 Liquidity
A Current Ratio of 1.36 indicates that 1NOKIA should not have too much problems paying its short term obligations.
1NOKIA has a Current ratio of 1.36. This is in the lower half of the industry: 1NOKIA underperforms 64.00% of its industry peers.
A Quick Ratio of 1.15 indicates that 1NOKIA should not have too much problems paying its short term obligations.
1NOKIA's Quick ratio of 1.15 is on the low side compared to the rest of the industry. 1NOKIA is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
1NOKIA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.45%.
Measured over the past years, 1NOKIA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.14% on average per year.
1NOKIA shows a decrease in Revenue. In the last year, the revenue decreased by -9.02%.
The Revenue has been decreasing by -3.79% on average over the past years.
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
1NOKIA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.49% yearly.
Based on estimates for the next years, 1NOKIA will show a small growth in Revenue. The Revenue will grow by 2.77% on average per year.
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.
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 13.35, the valuation of 1NOKIA can be described as correct.
84.00% of the companies in the same industry are more expensive than 1NOKIA, based on the Price/Earnings ratio.
1NOKIA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
A Price/Forward Earnings ratio of 12.00 indicates a correct valuation of 1NOKIA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1NOKIA indicates a rather cheap valuation: 1NOKIA is cheaper than 88.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of 1NOKIA to the average of the S&P500 Index (21.70), we can say 1NOKIA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.35 | ||
| Fwd PE | 12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1NOKIA is valued a bit cheaper than the industry average as 68.00% of the companies are valued more expensively.
1NOKIA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.29 | ||
| EV/EBITDA | 7.83 |
4.3 Compensation for Growth
1NOKIA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.2
EPS Next 2Y-2.97%
EPS Next 3Y0.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.84%, 1NOKIA has a reasonable but not impressive dividend return.
1NOKIA's Dividend Yield is comparable with the industry average which is at 4.58.
Compared to the average S&P500 Dividend Yield of 2.42, 1NOKIA is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
5.2 History
The dividend of 1NOKIA has a limited annual growth rate of 5.44%.
Dividend Growth(5Y)5.44%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
91.46% of the earnings are spent on dividend by 1NOKIA. This is not a sustainable payout ratio.
The dividend of 1NOKIA 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%
BIT:1NOKIA (7/1/2025, 7:00:00 PM)
4.407
-0.18 (-3.9%)
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 Cap23.75B
Analysts70.56
Price Target4.94 (12.09%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
Yearly Dividend0.13
Dividend Growth(5Y)5.44%
DP91.46%
Div Incr Years0
Div Non Decr Years0
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)-0.14%
PT rev (3m)-1.25%
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 | 13.35 | ||
| Fwd PE | 12 | ||
| P/S | 1.24 | ||
| P/FCF | 13.29 | ||
| P/OCF | 10.26 | ||
| P/B | 1.15 | ||
| P/tB | 1.89 | ||
| EV/EBITDA | 7.83 |
EPS(TTM)0.33
EY7.49%
EPS(NY)0.37
Fwd EY8.33%
FCF(TTM)0.33
FCFY7.52%
OCF(TTM)0.43
OCFY9.75%
SpS3.56
BVpS3.85
TBVpS2.34
PEG (NY)N/A
PEG (5Y)1.2
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 | 2.13 |
F-Score6
WACC6.87%
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%