NOKIA CORP-SPON ADR (NOK)
US6549022043 - ADR
We assign a fundamental rating of 5 out of 10 to NOK. NOK was compared to 51 industry peers in the Communications Equipment industry. NOK has only an average score on both its financial health and profitability. NOK is cheap, but on the other hand it scores bad on growth. These ratings would make NOK suitable for value investing!
1. Profitability
1.1 Basic Checks
NOK had positive earnings in the past year.
In the past year NOK had a positive cash flow from operations.
NOK had positive earnings in 4 of the past 5 years.
Each year in the past 5 years NOK had a positive operating cash flow.
1.2 Ratios
NOK's Return On Assets of 1.09% is fine compared to the rest of the industry. NOK outperforms 68.63% of its industry peers.
The Return On Equity of NOK (2.03%) is better than 68.63% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.56%, NOK is in the better half of the industry, outperforming 72.55% of the companies in the same industry.
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
The Profit Margin of NOK (2.16%) is better than 70.59% of its industry peers.
The Operating Margin of NOK (8.48%) is better than 82.35% of its industry peers.
NOK's Operating Margin has improved in the last couple of years.
NOK's Gross Margin of 44.42% is fine compared to the rest of the industry. NOK outperforms 60.78% of its industry peers.
In the last couple of years the Gross Margin of NOK has remained more or less at the same level.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NOK is destroying value.
The number of shares outstanding for NOK has been reduced compared to 1 year ago.
The number of shares outstanding for NOK has been reduced compared to 5 years ago.
The debt/assets ratio for NOK is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.28 indicates that NOK is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.28, NOK is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
NOK has a debt to FCF ratio of 1.25. This is a very positive value and a sign of high solvency as it would only need 1.25 years to pay back of all of its debts.
The Debt to FCF ratio of NOK (1.25) is better than 68.63% of its industry peers.
NOK has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
NOK's Debt to Equity ratio of 0.17 is in line compared to the rest of the industry. NOK outperforms 54.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 2.28 |
ROIC/WACC0.68
WACC6.72%
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's Current ratio of 1.72 is in line compared to the rest of the industry. NOK outperforms 41.18% of its industry peers.
NOK has a Quick Ratio of 1.46. 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 Quick ratio of 1.46. This is comparable to the rest of the industry: NOK outperforms 56.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
The earnings per share for NOK have decreased by -7.23% in the last year.
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)-7.23%
EPS 3Y2.5%
EPS 5Y3.13%
EPS Q2Q%22.1%
Revenue 1Y (TTM)-20.14%
Revenue growth 3Y0.62%
Revenue growth 5Y-0.27%
Sales Q2Q%-13.17%
3.2 Future
NOK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.97% yearly.
Based on estimates for the next years, NOK will show a decrease in Revenue. The Revenue will decrease by -3.77% on average per year.
EPS Next Y19.85%
EPS Next 2Y8.68%
EPS Next 3Y8.56%
EPS Next 5Y9.97%
Revenue Next Year-16.28%
Revenue Next 2Y-8.1%
Revenue Next 3Y-4.68%
Revenue Next 5Y-3.77%
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
A Price/Earnings ratio of 13.58 indicates a correct valuation of NOK.
Based on the Price/Earnings ratio, NOK is valued cheaper than 86.27% of the companies in the same industry.
When comparing the Price/Earnings ratio of NOK to the average of the S&P500 Index (27.30), we can say NOK is valued rather cheaply.
A Price/Forward Earnings ratio of 12.92 indicates a correct valuation of NOK.
Based on the Price/Forward Earnings ratio, NOK is valued cheaper than 82.35% of the companies in the same industry.
NOK is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.58 | ||
| Fwd PE | 12.92 |
4.2 Price Multiples
NOK's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NOK is cheaper than 94.12% of the companies in the same industry.
96.08% of the companies in the same industry are more expensive than NOK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.29 | ||
| EV/EBITDA | 6.15 |
4.3 Compensation for Growth
NOK's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of NOK may justify a higher PE ratio.
PEG (NY)0.68
PEG (5Y)4.34
EPS Next 2Y8.68%
EPS Next 3Y8.56%
5. Dividend
5.1 Amount
NOK has a Yearly Dividend Yield of 2.83%.
NOK's Dividend Yield is rather good when compared to the industry average which is at 10.11. NOK pays more dividend than 86.27% of the companies in the same industry.
NOK's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
5.2 History
The dividend of NOK decreases each year by -10.39%.
NOK has paid a dividend for at least 10 years, which is a reliable track record.
NOK has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-10.39%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
NOK pays out 175.85% of its income as dividend. This is not a sustainable payout ratio.
DP175.85%
EPS Next 2Y8.68%
EPS Next 3Y8.56%
NOKIA CORP-SPON ADR
NYSE:NOK (12/27/2024, 8:04:01 PM)
After market: 4.46 -0.02 (-0.45%)4.48
+0.01 (+0.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners36.84%
Inst Owner Change23.21%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap24.15B
Analysts68.89
Price Target4.69 (4.69%)
Short Float %1%
Short Ratio2.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
Dividend Growth(5Y)-10.39%
DP175.85%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)-2.61%
PT rev (3m)4.23%
EPS NQ rev (1m)1.75%
EPS NQ rev (3m)4.03%
EPS NY rev (1m)1.75%
EPS NY rev (3m)-3.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.58 | ||
| Fwd PE | 12.92 | ||
| P/S | 1.21 | ||
| P/FCF | 6.29 | ||
| P/OCF | 5.59 | ||
| P/B | 1.14 | ||
| P/tB | 1.65 | ||
| EV/EBITDA | 6.15 |
EPS(TTM)0.33
EY7.37%
EPS(NY)0.35
Fwd EY7.74%
FCF(TTM)0.71
FCFY15.89%
OCF(TTM)0.8
OCFY17.88%
SpS3.7
BVpS3.92
TBVpS2.71
PEG (NY)0.68
PEG (5Y)4.34
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 | 2.28 |
F-Score7
WACC6.72%
ROIC/WACC0.68
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)-7.23%
EPS 3Y2.5%
EPS 5Y3.13%
EPS Q2Q%22.1%
EPS Next Y19.85%
EPS Next 2Y8.68%
EPS Next 3Y8.56%
EPS Next 5Y9.97%
Revenue 1Y (TTM)-20.14%
Revenue growth 3Y0.62%
Revenue growth 5Y-0.27%
Sales Q2Q%-13.17%
Revenue Next Year-16.28%
Revenue Next 2Y-8.1%
Revenue Next 3Y-4.68%
Revenue Next 5Y-3.77%
EBIT growth 1Y-19.79%
EBIT growth 3Y4.61%
EBIT growth 5Y35.1%
EBIT Next Year35.52%
EBIT Next 3Y11.13%
EBIT Next 5Y7.02%
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%