NOKIA OYJ (1NOKIA.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1NOKIA - FI0009000681 - Common Stock
5.558 EUR
-0.07 (-1.24%)
1NOKIA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 31 industry peers in the Communications Equipment industry. 1NOKIA has only an average score on both its financial health and profitability. 1NOKIA is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year 1NOKIA was profitable.
- 1NOKIA had a positive operating cash flow in the past year.
- Of the past 5 years 1NOKIA 4 years were profitable.
- In the past 5 years 1NOKIA always reported a positive cash flow from operatings.
1.2 Ratios
- 1NOKIA has a better Return On Assets (2.57%) than 74.19% of its industry peers.
- 1NOKIA's Return On Equity of 4.74% is fine compared to the rest of the industry. 1NOKIA outperforms 67.74% of its industry peers.
- With a decent Return On Invested Capital value of 2.84%, 1NOKIA is doing good in the industry, outperforming 64.52% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for 1NOKIA is significantly below the industry average of 10.63%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.57% | ||
| ROE | 4.74% | ||
| ROIC | 2.84% |
ROA(3y)4.94%
ROA(5y)2.38%
ROE(3y)9.78%
ROE(5y)3.69%
ROIC(3y)4.06%
ROIC(5y)4.02%
1.3 Margins
- 1NOKIA's Profit Margin of 4.70% is fine compared to the rest of the industry. 1NOKIA outperforms 67.74% of its industry peers.
- 1NOKIA's Profit Margin has improved in the last couple of years.
- 1NOKIA has a Operating Margin of 6.02%. This is in the better half of the industry: 1NOKIA outperforms 67.74% of its industry peers.
- In the last couple of years the Operating Margin of 1NOKIA has grown nicely.
- The Gross Margin of 1NOKIA (43.88%) is comparable to the rest of the industry.
- 1NOKIA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.02% | ||
| PM (TTM) | 4.7% | ||
| GM | 43.88% |
OM growth 3Y-2.82%
OM growth 5Y14.53%
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.
- 1NOKIA has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, 1NOKIA has less shares outstanding
- The debt/assets ratio for 1NOKIA has been reduced compared to a year ago.
2.2 Solvency
- 1NOKIA has an Altman-Z score of 2.57. This is not the best score and indicates that 1NOKIA 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 2.57, 1NOKIA is in line with its industry, outperforming 58.06% of the companies in the same industry.
- The Debt to FCF ratio of 1NOKIA is 3.16, which is a good value as it means it would take 1NOKIA, 3.16 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 3.16, 1NOKIA is in the better half of the industry, outperforming 61.29% of the companies in the same industry.
- A Debt/Equity ratio of 0.16 indicates that 1NOKIA is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.16, 1NOKIA is in the better half of the industry, outperforming 74.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 3.16 | ||
| Altman-Z | 2.57 |
ROIC/WACC0.36
WACC7.91%
2.3 Liquidity
- 1NOKIA has a Current Ratio of 1.48. This is a normal value and indicates that 1NOKIA is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.48, 1NOKIA is in line with its industry, outperforming 51.61% of the companies in the same industry.
- A Quick Ratio of 1.23 indicates that 1NOKIA should not have too much problems paying its short term obligations.
- 1NOKIA has a Quick ratio (1.23) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.48 | ||
| Quick Ratio | 1.23 |
3. Growth
3.1 Past
- The earnings per share for 1NOKIA have decreased by 0.00% in the last year.
- The Earnings Per Share has been growing by 11.14% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 3.04% in the past year.
- The Revenue has been decreasing by -3.79% on average over the past years.
EPS 1Y (TTM)0%
EPS 3Y1.77%
EPS 5Y11.14%
EPS Q2Q%0%
Revenue 1Y (TTM)3.04%
Revenue growth 3Y-4.69%
Revenue growth 5Y-3.79%
Sales Q2Q%11.6%
3.2 Future
- The Earnings Per Share is expected to grow by 0.01% on average over the next years.
- Based on estimates for the next years, 1NOKIA will show a small growth in Revenue. The Revenue will grow by 2.85% on average per year.
EPS Next Y-30.18%
EPS Next 2Y-7.61%
EPS Next 3Y-0.74%
EPS Next 5Y0.01%
Revenue Next Year4.09%
Revenue Next 2Y4.03%
Revenue Next 3Y3.74%
Revenue Next 5Y2.85%
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
- The Price/Earnings ratio is 17.93, which indicates a rather expensive current 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 87.10% of the companies listed in the same industry.
- 1NOKIA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- 1NOKIA is valuated correctly with a Price/Forward Earnings ratio of 16.70.
- 77.42% of the companies in the same industry are more expensive than 1NOKIA, based on the Price/Forward Earnings ratio.
- 1NOKIA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.93 | ||
| Fwd PE | 16.7 |
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 80.65% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, 1NOKIA is valued a bit cheaper than 61.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.93 | ||
| EV/EBITDA | 12.19 |
4.3 Compensation for Growth
- The decent profitability rating of 1NOKIA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.61
EPS Next 2Y-7.61%
EPS Next 3Y-0.74%
5. Dividend
5.1 Amount
- 1NOKIA has a Yearly Dividend Yield of 2.52%. Purely for dividend investing, there may be better candidates out there.
- 1NOKIA's Dividend Yield is rather good when compared to the industry average which is at 2.62. 1NOKIA pays more dividend than 83.87% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, 1NOKIA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.52% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 1NOKIA pays out 81.90% of its income as dividend. This is not a sustainable payout ratio.
DP81.9%
EPS Next 2Y-7.61%
EPS Next 3Y-0.74%
NOKIA OYJ / 1NOKIA.MI FAQ
What is the ChartMill fundamental rating of NOKIA OYJ (1NOKIA.MI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to 1NOKIA.MI.
What is the valuation status for 1NOKIA stock?
ChartMill assigns a valuation rating of 5 / 10 to NOKIA OYJ (1NOKIA.MI). This can be considered as Fairly Valued.
What is the profitability of 1NOKIA stock?
NOKIA OYJ (1NOKIA.MI) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for 1NOKIA stock?
The Price/Earnings (PE) ratio for NOKIA OYJ (1NOKIA.MI) is 17.93 and the Price/Book (PB) ratio is 1.57.
Is the dividend of NOKIA OYJ sustainable?
The dividend rating of NOKIA OYJ (1NOKIA.MI) is 4 / 10 and the dividend payout ratio is 81.9%.