NOKIA OYJ (1NOKIA.MI) Stock Fundamental Analysis
BIT:1NOKIA - Borsa Italiana Milan - FI0009000681 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to 1NOKIA. 1NOKIA was compared to 25 industry peers in the Communications Equipment industry. 1NOKIA has an excellent profitability rating, but there are some minor concerns on its financial health. 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
1NOKIA had positive earnings in the past year.
1NOKIA had a positive operating cash flow in the past year.
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's Return On Assets of 3.26% is fine compared to the rest of the industry. 1NOKIA outperforms 80.00% of its industry peers.
1NOKIA has a better Return On Equity (6.19%) than 76.00% of its industry peers.
1NOKIA has a better Return On Invested Capital (4.56%) than 64.00% of its industry peers.
1NOKIA had an Average Return On Invested Capital over the past 3 years of 4.32%. This is below the industry average of 6.88%.
The last Return On Invested Capital (4.56%) for 1NOKIA is above the 3 year average (4.32%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.26% | ||
| ROE | 6.19% | ||
| ROIC | 4.56% |
ROA(3y)4.94%
ROA(5y)2.38%
ROE(3y)9.78%
ROE(5y)3.69%
ROIC(3y)4.32%
ROIC(5y)4.18%
1.3 Margins
The Profit Margin of 1NOKIA (6.57%) is better than 84.00% of its industry peers.
1NOKIA's Profit Margin has improved in the last couple of years.
1NOKIA has a better Operating Margin (10.27%) than 88.00% of its industry peers.
In the last couple of years the Operating Margin of 1NOKIA has grown nicely.
1NOKIA has a Gross Margin (45.72%) which is in line with its industry peers.
In the last couple of years the Gross Margin of 1NOKIA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.27% | ||
| PM (TTM) | 6.57% | ||
| GM | 45.72% |
OM growth 3Y3.76%
OM growth 5Y19.12%
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.
The number of shares outstanding for 1NOKIA has been reduced compared to 1 year ago.
1NOKIA has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 1NOKIA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.22 indicates that 1NOKIA is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of 1NOKIA (2.22) is better than 68.00% of its industry peers.
The Debt to FCF ratio of 1NOKIA is 2.35, which is a good value as it means it would take 1NOKIA, 2.35 years of fcf income to pay off all of its debts.
1NOKIA's Debt to FCF ratio of 2.35 is fine compared to the rest of the industry. 1NOKIA outperforms 68.00% of its industry peers.
1NOKIA has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
1NOKIA's Debt to Equity ratio of 0.17 is fine compared to the rest of the industry. 1NOKIA outperforms 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.35 | ||
| Altman-Z | 2.22 |
ROIC/WACC0.69
WACC6.62%
2.3 Liquidity
1NOKIA has a Current Ratio of 1.58. This is a normal value and indicates that 1NOKIA is financially healthy and should not expect problems in meeting its short term obligations.
1NOKIA's Current ratio of 1.58 is in line compared to the rest of the industry. 1NOKIA outperforms 48.00% of its industry peers.
1NOKIA has a Quick Ratio of 1.39. This is a normal value and indicates that 1NOKIA is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.39, 1NOKIA perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
1NOKIA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.26%, which is quite impressive.
Measured over the past years, 1NOKIA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.30% on average per year.
The Revenue for 1NOKIA has decreased by -12.65% in the past year. This is quite bad
1NOKIA shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.79% yearly.
EPS 1Y (TTM)40.26%
EPS 3Y2.01%
EPS 5Y11.3%
EPS Q2Q%82.74%
Revenue 1Y (TTM)-12.65%
Revenue growth 3Y-4.69%
Revenue growth 5Y-3.79%
Sales Q2Q%7.57%
3.2 Future
Based on estimates for the next years, 1NOKIA will show a small growth in Earnings Per Share. The EPS will grow by 0.81% on average per year.
Based on estimates for the next years, 1NOKIA will show a decrease in Revenue. The Revenue will decrease by -1.36% on average per year.
EPS Next Y-16.8%
EPS Next 2Y-5.1%
EPS Next 3Y0.81%
EPS Next 5YN/A
Revenue Next Year1.07%
Revenue Next 2Y1.79%
Revenue Next 3Y1.58%
Revenue Next 5Y-1.36%
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
A Price/Earnings ratio of 11.59 indicates a reasonable valuation of 1NOKIA.
Compared to the rest of the industry, the Price/Earnings ratio of 1NOKIA indicates a rather cheap valuation: 1NOKIA is cheaper than 92.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.47, 1NOKIA is valued rather cheaply.
1NOKIA is valuated correctly with a Price/Forward Earnings ratio of 13.83.
64.00% of the companies in the same industry are more expensive than 1NOKIA, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 92.74. 1NOKIA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.59 | ||
| Fwd PE | 13.83 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1NOKIA indicates a rather cheap valuation: 1NOKIA is cheaper than 88.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 1NOKIA is valued a bit cheaper than the industry average as 64.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.02 | ||
| EV/EBITDA | 5.94 |
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)1.03
EPS Next 2Y-5.1%
EPS Next 3Y0.81%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.61%, 1NOKIA has a reasonable but not impressive dividend return.
1NOKIA's Dividend Yield is a higher than the industry average which is at 3.61.
Compared to an average S&P500 Dividend Yield of 2.28, 1NOKIA has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
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
1NOKIA pays out 56.57% of its income as dividend. This is a bit on the high side, but may be sustainable.
1NOKIA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP56.57%
EPS Next 2Y-5.1%
EPS Next 3Y0.81%
NOKIA OYJ
BIT:1NOKIA (2/4/2025, 7:00:00 PM)
4.5185
0 (-0.01%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners36.84%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap24.29B
Analysts70
Price Target4.59 (1.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
Yearly Dividend0.13
Dividend Growth(5Y)5.44%
DP56.57%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)9.11%
Min EPS beat(2)-17.43%
Max EPS beat(2)35.64%
EPS beat(4)3
Avg EPS beat(4)9.03%
Min EPS beat(4)-17.43%
Max EPS beat(4)35.64%
EPS beat(8)3
Avg EPS beat(8)-2.45%
EPS beat(12)7
Avg EPS beat(12)0.98%
EPS beat(16)11
Avg EPS beat(16)39.41%
Revenue beat(2)1
Avg Revenue beat(2)-3.82%
Min Revenue beat(2)-11.71%
Max Revenue beat(2)4.06%
Revenue beat(4)1
Avg Revenue beat(4)-6.5%
Min Revenue beat(4)-11.71%
Max Revenue beat(4)4.06%
Revenue beat(8)1
Avg Revenue beat(8)-7.37%
Revenue beat(12)3
Avg Revenue beat(12)-4.74%
Revenue beat(16)5
Avg Revenue beat(16)-3.67%
PT rev (1m)2.97%
PT rev (3m)7.37%
EPS NQ rev (1m)6.25%
EPS NQ rev (3m)-17.48%
EPS NY rev (1m)0.53%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)0.34%
Revenue NQ rev (3m)-11.16%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.59 | ||
| Fwd PE | 13.83 | ||
| P/S | 1.25 | ||
| P/FCF | 12.02 | ||
| P/OCF | 9.74 | ||
| P/B | 1.18 | ||
| P/tB | 1.72 | ||
| EV/EBITDA | 5.94 |
EPS(TTM)0.39
EY8.63%
EPS(NY)0.33
Fwd EY7.23%
FCF(TTM)0.38
FCFY8.32%
OCF(TTM)0.46
OCFY10.26%
SpS3.62
BVpS3.84
TBVpS2.63
PEG (NY)N/A
PEG (5Y)1.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.26% | ||
| ROE | 6.19% | ||
| ROCE | 7.19% | ||
| ROIC | 4.56% | ||
| ROICexc | 6.71% | ||
| ROICexgc | 10.26% | ||
| OM | 10.27% | ||
| PM (TTM) | 6.57% | ||
| GM | 45.72% | ||
| FCFM | 10.4% |
ROA(3y)4.94%
ROA(5y)2.38%
ROE(3y)9.78%
ROE(5y)3.69%
ROIC(3y)4.32%
ROIC(5y)4.18%
ROICexc(3y)6.21%
ROICexc(5y)6.14%
ROICexgc(3y)9.32%
ROICexgc(5y)9.66%
ROCE(3y)6.81%
ROCE(5y)6.6%
ROICexcg growth 3Y-3.96%
ROICexcg growth 5Y15.73%
ROICexc growth 3Y-2.03%
ROICexc growth 5Y16.98%
OM growth 3Y3.76%
OM growth 5Y19.12%
PM growth 3Y-3.13%
PM growth 5Y194.44%
GM growth 3Y5.04%
GM growth 5Y5.25%
F-Score7
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.35 | ||
| Debt/EBITDA | 1.19 | ||
| Cap/Depr | 46.55% | ||
| Cap/Sales | 2.43% | ||
| Interest Coverage | 7.59 | ||
| Cash Conversion | 82.82% | ||
| Profit Quality | 158.14% | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 2.22 |
F-Score7
WACC6.62%
ROIC/WACC0.69
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)40.26%
EPS 3Y2.01%
EPS 5Y11.3%
EPS Q2Q%82.74%
EPS Next Y-16.8%
EPS Next 2Y-5.1%
EPS Next 3Y0.81%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.65%
Revenue growth 3Y-4.69%
Revenue growth 5Y-3.79%
Sales Q2Q%7.57%
Revenue Next Year1.07%
Revenue Next 2Y1.79%
Revenue Next 3Y1.58%
Revenue Next 5Y-1.36%
EBIT growth 1Y18.04%
EBIT growth 3Y-1.11%
EBIT growth 5Y14.61%
EBIT Next Year30.52%
EBIT Next 3Y11.26%
EBIT Next 5Y11.1%
FCF growth 1Y203.91%
FCF growth 3Y-0.72%
FCF growth 5YN/A
OCF growth 1Y89.29%
OCF growth 3Y-1.71%
OCF growth 5Y44.92%