NOKIA OYJ (1NOKIA.MI) Stock Fundamental Analysis
BIT:1NOKIA - Euronext Milan - FI0009000681 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 1NOKIA. 1NOKIA was compared to 25 industry peers in the Communications Equipment industry. While 1NOKIA has a great profitability rating, 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
In the past year 1NOKIA was profitable.
1NOKIA had a positive operating cash flow in the past year.
1NOKIA had positive earnings in 4 of the past 5 years.
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 69.23% of its industry peers.
1NOKIA has a Return On Equity of 6.19%. This is in the better half of the industry: 1NOKIA outperforms 69.23% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.56%, 1NOKIA is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1NOKIA is below the industry average of 7.38%.
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
1NOKIA has a better Profit Margin (6.57%) than 73.08% of its industry peers.
In the last couple of years the Profit Margin of 1NOKIA has grown nicely.
1NOKIA's Operating Margin of 10.27% is fine compared to the rest of the industry. 1NOKIA outperforms 76.92% of its industry peers.
In the last couple of years the Operating Margin of 1NOKIA has grown nicely.
1NOKIA's Gross Margin of 45.72% is in line compared to the rest of the industry. 1NOKIA outperforms 50.00% of its industry peers.
1NOKIA's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1NOKIA is destroying value.
Compared to 1 year ago, 1NOKIA has less shares outstanding
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 2.29 indicates that 1NOKIA is not a great score, but indicates only limited risk for bankruptcy at the moment.
1NOKIA has a better Altman-Z score (2.29) than 69.23% 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.
With a decent Debt to FCF ratio value of 2.35, 1NOKIA is doing good in the industry, outperforming 69.23% of the companies in the same industry.
1NOKIA has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.17, 1NOKIA is in the better half of the industry, outperforming 73.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.35 | ||
| Altman-Z | 2.29 |
ROIC/WACC0.66
WACC6.91%
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.
The Current ratio of 1NOKIA (1.58) is comparable to the rest of the industry.
A Quick Ratio of 1.39 indicates that 1NOKIA should not have too much problems paying its short term obligations.
1NOKIA's Quick ratio of 1.39 is in line compared to the rest of the industry. 1NOKIA outperforms 53.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 39.29% over the past year.
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.
The Revenue for 1NOKIA has decreased by -12.65% in the past year. This is quite bad
The Revenue has been decreasing by -3.79% on average over the past years.
EPS 1Y (TTM)39.29%
EPS 3Y1.77%
EPS 5Y11.14%
EPS Q2Q%80%
Revenue 1Y (TTM)-12.65%
Revenue growth 3Y-4.69%
Revenue growth 5Y-3.79%
Sales Q2Q%4.84%
3.2 Future
Based on estimates for the next years, 1NOKIA will show a decrease in Earnings Per Share. The EPS will decrease by -0.26% on average per year.
1NOKIA is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.34% yearly.
EPS Next Y-15.89%
EPS Next 2Y-3.71%
EPS Next 3Y-0.26%
EPS Next 5YN/A
Revenue Next Year2.42%
Revenue Next 2Y2.53%
Revenue Next 3Y2.43%
Revenue Next 5Y-1.34%
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.
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
1NOKIA is valuated correctly with a Price/Earnings ratio of 12.33.
88.46% of the companies in the same industry are more expensive than 1NOKIA, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.35, 1NOKIA is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 14.66, the valuation of 1NOKIA can be described as correct.
76.92% 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 22.10. 1NOKIA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 14.66 |
4.2 Price Multiples
1NOKIA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1NOKIA is cheaper than 73.08% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 1NOKIA is valued a bit cheaper than the industry average as 65.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.99 | ||
| EV/EBITDA | 6.59 |
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)1.11
EPS Next 2Y-3.71%
EPS Next 3Y-0.26%
5. Dividend
5.1 Amount
1NOKIA has a Yearly Dividend Yield of 2.90%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.51, 1NOKIA pays a better dividend. On top of this 1NOKIA pays more dividend than 80.77% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.33, 1NOKIA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
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
56.57% of the earnings are spent on dividend by 1NOKIA. This is a bit on the high side, but may be sustainable.
1NOKIA's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP56.57%
EPS Next 2Y-3.71%
EPS Next 3Y-0.26%
BIT:1NOKIA (3/7/2025, 7:00:00 PM)
4.8075
+0.14 (+3.04%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners35.57%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap26.25B
Analysts70.56
Price Target5 (4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
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)6.49%
Min EPS beat(2)-17.43%
Max EPS beat(2)30.42%
EPS beat(4)3
Avg EPS beat(4)7.73%
Min EPS beat(4)-17.43%
Max EPS beat(4)30.42%
EPS beat(8)3
Avg EPS beat(8)-3.1%
EPS beat(12)7
Avg EPS beat(12)0.55%
EPS beat(16)11
Avg EPS beat(16)39.08%
Revenue beat(2)1
Avg Revenue beat(2)-5.27%
Min Revenue beat(2)-11.71%
Max Revenue beat(2)1.17%
Revenue beat(4)1
Avg Revenue beat(4)-7.23%
Min Revenue beat(4)-11.71%
Max Revenue beat(4)1.17%
Revenue beat(8)1
Avg Revenue beat(8)-7.73%
Revenue beat(12)3
Avg Revenue beat(12)-4.98%
Revenue beat(16)5
Avg Revenue beat(16)-3.85%
PT rev (1m)8.93%
PT rev (3m)13.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.83%
EPS NY rev (1m)0.39%
EPS NY rev (3m)0.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.75%
Revenue NY rev (1m)1.25%
Revenue NY rev (3m)1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.33 | ||
| Fwd PE | 14.66 | ||
| P/S | 1.35 | ||
| P/FCF | 12.99 | ||
| P/OCF | 10.53 | ||
| P/B | 1.27 | ||
| P/tB | 1.86 | ||
| EV/EBITDA | 6.59 |
EPS(TTM)0.39
EY8.11%
EPS(NY)0.33
Fwd EY6.82%
FCF(TTM)0.37
FCFY7.7%
OCF(TTM)0.46
OCFY9.5%
SpS3.56
BVpS3.78
TBVpS2.59
PEG (NY)N/A
PEG (5Y)1.11
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 | 2.29 |
F-Score7
WACC6.91%
ROIC/WACC0.66
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)39.29%
EPS 3Y1.77%
EPS 5Y11.14%
EPS Q2Q%80%
EPS Next Y-15.89%
EPS Next 2Y-3.71%
EPS Next 3Y-0.26%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.65%
Revenue growth 3Y-4.69%
Revenue growth 5Y-3.79%
Sales Q2Q%4.84%
Revenue Next Year2.42%
Revenue Next 2Y2.53%
Revenue Next 3Y2.43%
Revenue Next 5Y-1.34%
EBIT growth 1Y18.04%
EBIT growth 3Y-1.11%
EBIT growth 5Y14.61%
EBIT Next Year24.81%
EBIT Next 3Y9.61%
EBIT Next 5Y9.86%
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%