NOKIA OYJ (NOA3.DE) Stock Fundamental Analysis
FRA:NOA3 - Deutsche Boerse Ag - FI0009000681 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to NOA3. NOA3 was compared to 25 industry peers in the Communications Equipment industry. NOA3 has an excellent profitability rating, but there are some minor concerns on its financial health. NOA3 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
NOA3 had positive earnings in the past year.
NOA3 had a positive operating cash flow in the past year.
Of the past 5 years NOA3 4 years were profitable.
NOA3 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NOA3's Return On Assets of 3.26% is fine compared to the rest of the industry. NOA3 outperforms 80.00% of its industry peers.
NOA3's Return On Equity of 6.19% is fine compared to the rest of the industry. NOA3 outperforms 80.00% of its industry peers.
NOA3 has a Return On Invested Capital of 4.56%. This is in the better half of the industry: NOA3 outperforms 68.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NOA3 is below the industry average of 7.46%.
The 3 year average ROIC (4.32%) for NOA3 is below the current ROIC(4.56%), indicating increased profibility in the last year.
| 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
NOA3 has a better Profit Margin (6.57%) than 84.00% of its industry peers.
In the last couple of years the Profit Margin of NOA3 has grown nicely.
Looking at the Operating Margin, with a value of 10.27%, NOA3 belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
NOA3's Operating Margin has improved in the last couple of years.
The Gross Margin of NOA3 (45.72%) is comparable to the rest of the industry.
NOA3'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
NOA3 has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NOA3 has less shares outstanding than it did 1 year ago.
The number of shares outstanding for NOA3 has been reduced compared to 5 years ago.
The debt/assets ratio for NOA3 has been reduced compared to a year ago.
2.2 Solvency
NOA3 has an Altman-Z score of 2.17. This is not the best score and indicates that NOA3 is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.17, NOA3 is doing good in the industry, outperforming 64.00% of the companies in the same industry.
NOA3 has a debt to FCF ratio of 2.35. This is a good value and a sign of high solvency as NOA3 would need 2.35 years to pay back of all of its debts.
NOA3 has a better Debt to FCF ratio (2.35) than 68.00% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that NOA3 is not too dependend on debt financing.
NOA3's Debt to Equity ratio of 0.17 is fine compared to the rest of the industry. NOA3 outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.35 | ||
| Altman-Z | 2.17 |
ROIC/WACC0.65
WACC6.99%
2.3 Liquidity
A Current Ratio of 1.58 indicates that NOA3 should not have too much problems paying its short term obligations.
NOA3's Current ratio of 1.58 is in line compared to the rest of the industry. NOA3 outperforms 56.00% of its industry peers.
NOA3 has a Quick Ratio of 1.39. This is a normal value and indicates that NOA3 is financially healthy and should not expect problems in meeting its short term obligations.
NOA3 has a Quick ratio of 1.39. This is in the better half of the industry: NOA3 outperforms 64.00% 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, NOA3 shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.14% on average per year.
Looking at the last year, NOA3 shows a very negative growth in Revenue. The Revenue has decreased by -12.65% in the last year.
Measured over the past years, NOA3 shows a decrease in Revenue. The Revenue has been decreasing by -3.79% on average per year.
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
NOA3 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.25% yearly.
The Revenue is expected to grow by 1.89% on average over the next years.
EPS Next Y-17.02%
EPS Next 2Y-2.97%
EPS Next 3Y0.5%
EPS Next 5Y1.25%
Revenue Next Year2.42%
Revenue Next 2Y2.53%
Revenue Next 3Y2.43%
Revenue Next 5Y1.89%
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 11.24 indicates a reasonable valuation of NOA3.
Based on the Price/Earnings ratio, NOA3 is valued cheaply inside the industry as 96.00% of the companies are valued more expensively.
NOA3 is valuated cheaply when we compare the Price/Earnings ratio to 28.79, which is the current average of the S&P500 Index.
NOA3 is valuated correctly with a Price/Forward Earnings ratio of 13.54.
Based on the Price/Forward Earnings ratio, NOA3 is valued a bit cheaper than 80.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, NOA3 is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.24 | ||
| Fwd PE | 13.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NOA3 is valued cheaply inside the industry as 88.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, NOA3 is valued a bit cheaper than 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.68 | ||
| EV/EBITDA | 5.44 |
4.3 Compensation for Growth
NOA3 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.01
EPS Next 2Y-2.97%
EPS Next 3Y0.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.10%, NOA3 has a reasonable but not impressive dividend return.
NOA3's Dividend Yield is a higher than the industry average which is at 3.66.
NOA3's Dividend Yield is a higher than the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
5.2 History
The dividend of NOA3 has a limited annual growth rate of 5.44%.
Dividend Growth(5Y)5.44%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
56.57% of the earnings are spent on dividend by NOA3. This is a bit on the high side, but may be sustainable.
The dividend of NOA3 is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP56.57%
EPS Next 2Y-2.97%
EPS Next 3Y0.5%
FRA:NOA3 (4/25/2025, 7:00:00 PM)
4.383
+0.15 (+3.62%)
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 Cap23.60B
Analysts70.29
Price Target5.11 (16.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
Yearly Dividend0.13
Dividend Growth(5Y)5.44%
DP56.57%
Div Incr Years2
Div Non Decr Years2
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)2.62%
PT rev (3m)14.47%
EPS NQ rev (1m)-1.23%
EPS NQ rev (3m)0%
EPS NY rev (1m)-1.34%
EPS NY rev (3m)-0.44%
Revenue NQ rev (1m)1.93%
Revenue NQ rev (3m)2.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.24 | ||
| Fwd PE | 13.54 | ||
| P/S | 1.21 | ||
| P/FCF | 11.68 | ||
| P/OCF | 9.47 | ||
| P/B | 1.14 | ||
| P/tB | 1.67 | ||
| EV/EBITDA | 5.44 |
EPS(TTM)0.39
EY8.9%
EPS(NY)0.32
Fwd EY7.38%
FCF(TTM)0.38
FCFY8.56%
OCF(TTM)0.46
OCFY10.56%
SpS3.61
BVpS3.84
TBVpS2.62
PEG (NY)N/A
PEG (5Y)1.01
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 | 2.17 |
F-Score7
WACC6.99%
ROIC/WACC0.65
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-17.02%
EPS Next 2Y-2.97%
EPS Next 3Y0.5%
EPS Next 5Y1.25%
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 5Y1.89%
EBIT growth 1Y18.04%
EBIT growth 3Y-1.11%
EBIT growth 5Y14.61%
EBIT Next Year19.74%
EBIT Next 3Y12.13%
EBIT Next 5Y5.8%
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%