NOKIA CORP-SPON ADR (NOK) Stock Fundamental Analysis
NYSE:NOK - New York Stock Exchange, Inc. - US6549022043 - ADR - Currency: USD
NOK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 51 industry peers in the Communications Equipment industry. NOK has an average financial health and profitability rating. NOK has a bad growth rate and is valued cheaply. With these ratings, NOK could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
NOK had positive earnings in the past year.
NOK had a positive operating cash flow in the past year.
Of the past 5 years NOK 4 years were profitable.
Each year in the past 5 years NOK had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.09%, NOK is in the better half of the industry, outperforming 68.63% of the companies in the same industry.
NOK's Return On Equity of 2.03% is fine compared to the rest of the industry. NOK outperforms 68.63% of its industry peers.
NOK's Return On Invested Capital of 4.56% is fine compared to the rest of the industry. NOK outperforms 72.55% of its industry peers.
NOK had an Average Return On Invested Capital over the past 3 years of 5.43%. This is significantly below the industry average of 11.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.09% | ||
| ROE | 2.03% | ||
| ROIC | 4.56% |
ROA(3y)5.21%
ROA(5y)1.73%
ROE(3y)10.84%
ROE(5y)2.46%
ROIC(3y)5.43%
ROIC(5y)4.66%
1.3 Margins
NOK has a Profit Margin of 2.16%. This is in the better half of the industry: NOK outperforms 70.59% of its industry peers.
NOK has a better Operating Margin (8.48%) than 82.35% of its industry peers.
NOK's Operating Margin has improved in the last couple of years.
The Gross Margin of NOK (44.42%) is better than 60.78% of its industry peers.
NOK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.48% | ||
| PM (TTM) | 2.16% | ||
| GM | 44.42% |
OM growth 3Y3.97%
OM growth 5Y35.46%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.35%
GM growth 5Y0.84%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NOK is destroying value.
NOK has less shares outstanding than it did 1 year ago.
The number of shares outstanding for NOK has been reduced compared to 5 years ago.
Compared to 1 year ago, NOK has a worse debt to assets ratio.
2.2 Solvency
NOK has an Altman-Z score of 2.27. This is not the best score and indicates that NOK is in the grey zone with still only limited risk for bankruptcy at the moment.
NOK's Altman-Z score of 2.27 is fine compared to the rest of the industry. NOK outperforms 64.71% of its industry peers.
The Debt to FCF ratio of NOK is 1.25, which is an excellent value as it means it would take NOK, only 1.25 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.25, NOK is in the better half of the industry, outperforming 68.63% of the companies in the same industry.
A Debt/Equity ratio of 0.17 indicates that NOK is not too dependend on debt financing.
NOK has a Debt to Equity ratio (0.17) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 2.27 |
ROIC/WACC0.69
WACC6.58%
2.3 Liquidity
NOK has a Current Ratio of 1.72. This is a normal value and indicates that NOK is financially healthy and should not expect problems in meeting its short term obligations.
NOK has a Current ratio of 1.72. This is comparable to the rest of the industry: NOK outperforms 41.18% of its industry peers.
A Quick Ratio of 1.46 indicates that NOK should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.46, NOK perfoms like the industry average, outperforming 56.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
NOK shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.82%.
The Earnings Per Share has been growing slightly by 3.13% on average over the past years.
The Revenue for NOK has decreased by -20.14% in the past year. This is quite bad
NOK shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.27% yearly.
EPS 1Y (TTM)-8.82%
EPS 3Y2.5%
EPS 5Y3.13%
EPS Q2Q%20%
Revenue 1Y (TTM)-20.14%
Revenue growth 3Y0.62%
Revenue growth 5Y-0.27%
Sales Q2Q%-13.17%
3.2 Future
Based on estimates for the next years, NOK will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.49% on average per year.
The Revenue is expected to decrease by -3.29% on average over the next years.
EPS Next Y17.79%
EPS Next 2Y7.74%
EPS Next 3Y7.93%
EPS Next 5Y9.49%
Revenue Next Year-16.24%
Revenue Next 2Y-7.99%
Revenue Next 3Y-4.61%
Revenue Next 5Y-3.29%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.45, which indicates a correct valuation of NOK.
88.24% of the companies in the same industry are more expensive than NOK, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.28, NOK is valued rather cheaply.
NOK is valuated correctly with a Price/Forward Earnings ratio of 12.76.
Based on the Price/Forward Earnings ratio, NOK is valued a bit cheaper than 78.43% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 91.29. NOK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.45 | ||
| Fwd PE | 12.76 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NOK indicates a rather cheap valuation: NOK is cheaper than 98.04% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NOK indicates a rather cheap valuation: NOK is cheaper than 98.04% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.21 | ||
| EV/EBITDA | 6.09 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
NOK has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.76
PEG (5Y)4.3
EPS Next 2Y7.74%
EPS Next 3Y7.93%
5. Dividend
5.1 Amount
NOK has a Yearly Dividend Yield of 2.66%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 10.12, NOK pays a better dividend. On top of this NOK pays more dividend than 86.27% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, NOK has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
5.2 History
The dividend of NOK decreases each year by -10.39%.
NOK has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of NOK decreased in the last 3 years.
Dividend Growth(5Y)-10.39%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
175.85% of the earnings are spent on dividend by NOK. This is not a sustainable payout ratio.
DP175.85%
EPS Next 2Y7.74%
EPS Next 3Y7.93%
NOKIA CORP-SPON ADR
NYSE:NOK (1/29/2025, 8:04:01 PM)
After market: 4.45 +0.01 (+0.23%)4.44
-0.02 (-0.45%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners36.84%
Inst Owner Change-0.1%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap23.90B
Analysts70
Price Target4.69 (5.63%)
Short Float %1.08%
Short Ratio3.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.66% |
Yearly Dividend0.11
Dividend Growth(5Y)-10.39%
DP175.85%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.62%
Min EPS beat(2)-17.43%
Max EPS beat(2)4.19%
EPS beat(4)2
Avg EPS beat(4)-0.22%
Min EPS beat(4)-17.43%
Max EPS beat(4)13.73%
EPS beat(8)3
Avg EPS beat(8)-5.21%
EPS beat(12)7
Avg EPS beat(12)-1.42%
EPS beat(16)11
Avg EPS beat(16)38.75%
Revenue beat(2)0
Avg Revenue beat(2)-10.4%
Min Revenue beat(2)-11.71%
Max Revenue beat(2)-9.08%
Revenue beat(4)0
Avg Revenue beat(4)-10.34%
Min Revenue beat(4)-11.71%
Max Revenue beat(4)-9.08%
Revenue beat(8)1
Avg Revenue beat(8)-7.66%
Revenue beat(12)2
Avg Revenue beat(12)-5.39%
Revenue beat(16)4
Avg Revenue beat(16)-3.99%
PT rev (1m)0.84%
PT rev (3m)-1.79%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)1.9%
EPS NY rev (1m)0.15%
EPS NY rev (3m)-3.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-5.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.45 | ||
| Fwd PE | 12.76 | ||
| P/S | 1.2 | ||
| P/FCF | 6.21 | ||
| P/OCF | 5.52 | ||
| P/B | 1.13 | ||
| P/tB | 1.63 | ||
| EV/EBITDA | 6.09 |
EPS(TTM)0.33
EY7.43%
EPS(NY)0.35
Fwd EY7.84%
FCF(TTM)0.71
FCFY16.1%
OCF(TTM)0.8
OCFY18.11%
SpS3.71
BVpS3.94
TBVpS2.72
PEG (NY)0.76
PEG (5Y)4.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.09% | ||
| ROE | 2.03% | ||
| ROCE | 5.77% | ||
| ROIC | 4.56% | ||
| ROICexc | 6.77% | ||
| ROICexgc | 10.13% | ||
| OM | 8.48% | ||
| PM (TTM) | 2.16% | ||
| GM | 44.42% | ||
| FCFM | 19.26% |
ROA(3y)5.21%
ROA(5y)1.73%
ROE(3y)10.84%
ROE(5y)2.46%
ROIC(3y)5.43%
ROIC(5y)4.66%
ROICexc(3y)7.92%
ROICexc(5y)6.75%
ROICexgc(3y)12.17%
ROICexgc(5y)10.71%
ROCE(3y)6.88%
ROCE(5y)5.9%
ROICexcg growth 3Y-9.5%
ROICexcg growth 5Y24.82%
ROICexc growth 3Y-3.67%
ROICexc growth 5Y31.82%
OM growth 3Y3.97%
OM growth 5Y35.46%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.35%
GM growth 5Y0.84%
F-Score7
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.25 | ||
| Debt/EBITDA | 1.29 | ||
| Cap/Depr | 44.05% | ||
| Cap/Sales | 2.42% | ||
| Interest Coverage | 5.89 | ||
| Cash Conversion | 155.27% | ||
| Profit Quality | 891.79% | ||
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z | 2.27 |
F-Score7
WACC6.58%
ROIC/WACC0.69
Cap/Depr(3y)54.61%
Cap/Depr(5y)49.54%
Cap/Sales(3y)2.62%
Cap/Sales(5y)2.6%
Profit Quality(3y)82.59%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.82%
EPS 3Y2.5%
EPS 5Y3.13%
EPS Q2Q%20%
EPS Next Y17.79%
EPS Next 2Y7.74%
EPS Next 3Y7.93%
EPS Next 5Y9.49%
Revenue 1Y (TTM)-20.14%
Revenue growth 3Y0.62%
Revenue growth 5Y-0.27%
Sales Q2Q%-13.17%
Revenue Next Year-16.24%
Revenue Next 2Y-7.99%
Revenue Next 3Y-4.61%
Revenue Next 5Y-3.29%
EBIT growth 1Y-19.79%
EBIT growth 3Y4.61%
EBIT growth 5Y35.1%
EBIT Next Year35.52%
EBIT Next 3Y11.13%
EBIT Next 5Y7.55%
FCF growth 1Y345.89%
FCF growth 3Y-19.61%
FCF growth 5YN/A
OCF growth 1Y198.28%
OCF growth 3Y-9.2%
OCF growth 5Y29.62%