NOKIA OYJ (NOA3.DE) Stock Fundamental Analysis
FRA:NOA3 - Deutsche Boerse Ag - FI0009000681 - Common Stock - Currency: EUR
NOA3 gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 25 industry peers in the Communications Equipment industry. While NOA3 has a great profitability rating, there are some minor concerns on its financial health. NOA3 has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year NOA3 was profitable.
In the past year NOA3 had a positive cash flow from operations.
NOA3 had positive earnings in 4 of the past 5 years.
Each year in the past 5 years NOA3 had a positive operating cash flow.
1.2 Ratios
The Return On Assets of NOA3 (3.26%) is better than 84.00% of its industry peers.
The Return On Equity of NOA3 (6.19%) is better than 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.
NOA3 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 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's Profit Margin of 6.57% is amongst the best of the industry. NOA3 outperforms 88.00% of its industry peers.
NOA3's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 10.27%, NOA3 belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
In the last couple of years the Operating Margin of NOA3 has grown nicely.
NOA3's Gross Margin of 45.72% is in line compared to the rest of the industry. NOA3 outperforms 56.00% of its industry peers.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NOA3 is destroying value.
The number of shares outstanding for NOA3 has been reduced compared to 1 year ago.
NOA3 has less shares outstanding than it did 5 years ago.
The debt/assets ratio for NOA3 has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.22 indicates that NOA3 is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of NOA3 (2.22) is better than 64.00% of its industry peers.
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 Debt to FCF ratio of 2.35. This is in the better half of the industry: NOA3 outperforms 72.00% of its industry peers.
NOA3 has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of NOA3 (0.17) is better than 80.00% 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
NOA3 has a Current Ratio of 1.58. This is a normal value and indicates that NOA3 is financially healthy and should not expect problems in meeting its short term obligations.
NOA3's Current ratio of 1.58 is in line compared to the rest of the industry. NOA3 outperforms 52.00% of its industry peers.
A Quick Ratio of 1.39 indicates that NOA3 should not have too much problems paying its short term obligations.
NOA3 has a better Quick ratio (1.39) than 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 40.26% over the past year.
NOA3 shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.30% yearly.
The Revenue for NOA3 has decreased by -12.65% in the past year. This is quite bad
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)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, NOA3 will show a small growth in Earnings Per Share. The EPS will grow by 0.81% on average per year.
The Revenue is expected to decrease by -1.36% on average over the next years.
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.
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 11.57, the valuation of NOA3 can be described as reasonable.
NOA3's Price/Earnings ratio is rather cheap when compared to the industry. NOA3 is cheaper than 96.00% of the companies in the same industry.
NOA3's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.47.
Based on the Price/Forward Earnings ratio of 13.81, the valuation of NOA3 can be described as correct.
NOA3's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. NOA3 is cheaper than 68.00% of the companies in the same industry.
NOA3 is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.57 | ||
| Fwd PE | 13.81 |
4.2 Price Multiples
NOA3's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NOA3 is cheaper than 92.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NOA3 indicates a somewhat cheap valuation: NOA3 is cheaper than 68.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12 | ||
| EV/EBITDA | 5.93 |
4.3 Compensation for Growth
NOA3 has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.02
EPS Next 2Y-5.1%
EPS Next 3Y0.81%
5. Dividend
5.1 Amount
NOA3 has a Yearly Dividend Yield of 2.61%. Purely for dividend investing, there may be better candidates out there.
NOA3'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, NOA3 has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
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.
NOA3'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
FRA:NOA3 (2/4/2025, 7:00:00 PM)
4.512
-0.02 (-0.39%)
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 Cap24.25B
Analysts70
Price Target4.6 (1.95%)
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 Years2
Div Non Decr Years2
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)6.94%
EPS NQ rev (1m)6.25%
EPS NQ rev (3m)-17.48%
EPS NY rev (1m)0.53%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)0.34%
Revenue NQ rev (3m)-11.16%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)-3.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.57 | ||
| Fwd PE | 13.81 | ||
| P/S | 1.25 | ||
| P/FCF | 12 | ||
| P/OCF | 9.73 | ||
| P/B | 1.17 | ||
| P/tB | 1.72 | ||
| EV/EBITDA | 5.93 |
EPS(TTM)0.39
EY8.64%
EPS(NY)0.33
Fwd EY7.24%
FCF(TTM)0.38
FCFY8.33%
OCF(TTM)0.46
OCFY10.28%
SpS3.62
BVpS3.84
TBVpS2.63
PEG (NY)N/A
PEG (5Y)1.02
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%