NOKIA OYJ (NOKIA.PA) Stock Fundamental Analysis
Europe - EPA:NOKIA - FI0009000681 - Common Stock
5.216 EUR
+0.48 (+10.14%)
Taking everything into account, NOKIA scores 4 out of 10 in our fundamental rating. NOKIA was compared to 29 industry peers in the Communications Equipment industry. Both the profitability and the financial health of NOKIA get a neutral evaluation. Nothing too spectacular is happening here. NOKIA has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
NOKIA had positive earnings in the past year.
In the past year NOKIA had a positive cash flow from operations.
Of the past 5 years NOKIA 4 years were profitable.
In the past 5 years NOKIA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of NOKIA (2.83%) is comparable to the rest of the industry.
NOKIA has a Return On Equity of 5.17%. This is comparable to the rest of the industry: NOKIA outperforms 58.62% of its industry peers.
NOKIA's Return On Invested Capital of 2.89% is in line compared to the rest of the industry. NOKIA outperforms 51.72% of its industry peers.
NOKIA had an Average Return On Invested Capital over the past 3 years of 4.03%. This is significantly below the industry average of 12.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 5.17% | ||
| ROIC | 2.89% |
ROA(3y)4.94%
ROA(5y)2.38%
ROE(3y)9.78%
ROE(5y)3.69%
ROIC(3y)4.03%
ROIC(5y)4.01%
1.3 Margins
Looking at the Profit Margin, with a value of 5.30%, NOKIA is in the better half of the industry, outperforming 62.07% of the companies in the same industry.
In the last couple of years the Profit Margin of NOKIA has grown nicely.
The Operating Margin of NOKIA (6.21%) is comparable to the rest of the industry.
NOKIA's Operating Margin has improved in the last couple of years.
NOKIA's Gross Margin of 44.23% is in line compared to the rest of the industry. NOKIA outperforms 41.38% of its industry peers.
NOKIA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.21% | ||
| PM (TTM) | 5.3% | ||
| GM | 44.23% |
OM growth 3Y-3.28%
OM growth 5Y14.2%
PM growth 3Y-3.13%
PM growth 5Y194.44%
GM growth 3Y5.04%
GM growth 5Y5.25%
2. Health
2.1 Basic Checks
NOKIA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
NOKIA has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, NOKIA has less shares outstanding
NOKIA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.36 indicates that NOKIA is not a great score, but indicates only limited risk for bankruptcy at the moment.
NOKIA's Altman-Z score of 2.36 is fine compared to the rest of the industry. NOKIA outperforms 62.07% of its industry peers.
The Debt to FCF ratio of NOKIA is 2.77, which is a good value as it means it would take NOKIA, 2.77 years of fcf income to pay off all of its debts.
NOKIA has a Debt to FCF ratio (2.77) which is in line with its industry peers.
A Debt/Equity ratio of 0.16 indicates that NOKIA is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.16, NOKIA is doing good in the industry, outperforming 72.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 2.77 | ||
| Altman-Z | 2.36 |
ROIC/WACC0.41
WACC7%
2.3 Liquidity
NOKIA has a Current Ratio of 1.46. This is a normal value and indicates that NOKIA is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.46, NOKIA is in line with its industry, outperforming 44.83% of the companies in the same industry.
A Quick Ratio of 1.21 indicates that NOKIA should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.21, NOKIA is in line with its industry, outperforming 48.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.21 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.33% over the past year.
The Earnings Per Share has been growing by 11.14% on average over the past years. This is quite good.
NOKIA shows a decrease in Revenue. In the last year, the revenue decreased by -2.91%.
NOKIA shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.79% yearly.
EPS 1Y (TTM)3.33%
EPS 3Y1.77%
EPS 5Y11.14%
EPS Q2Q%-33.33%
Revenue 1Y (TTM)-2.91%
Revenue growth 3Y-4.69%
Revenue growth 5Y-3.79%
Sales Q2Q%1.79%
3.2 Future
Based on estimates for the next years, NOKIA will show a decrease in Earnings Per Share. The EPS will decrease by -1.04% on average per year.
The Revenue is expected to grow by 2.53% on average over the next years.
EPS Next Y-30.06%
EPS Next 2Y-6.46%
EPS Next 3Y-1.18%
EPS Next 5Y-1.04%
Revenue Next Year3.32%
Revenue Next 2Y3.45%
Revenue Next 3Y3.06%
Revenue Next 5Y2.53%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
With a Price/Earnings ratio of 16.83, NOKIA is valued correctly.
Based on the Price/Earnings ratio, NOKIA is valued cheaply inside the industry as 82.76% of the companies are valued more expensively.
NOKIA is valuated rather cheaply when we compare the Price/Earnings ratio to 27.57, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.28, NOKIA is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NOKIA indicates a rather cheap valuation: NOKIA is cheaper than 82.76% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of NOKIA to the average of the S&P500 Index (23.09), we can say NOKIA is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.83 | ||
| Fwd PE | 15.28 |
4.2 Price Multiples
NOKIA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. NOKIA is cheaper than 68.97% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NOKIA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.94 | ||
| EV/EBITDA | 9.96 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.51
EPS Next 2Y-6.46%
EPS Next 3Y-1.18%
5. Dividend
5.1 Amount
NOKIA has a Yearly Dividend Yield of 2.86%.
NOKIA's Dividend Yield is a higher than the industry average which is at 5.20.
Compared to an average S&P500 Dividend Yield of 2.32, NOKIA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
5.2 History
The dividend of NOKIA has a limited annual growth rate of 5.44%.
Dividend Growth(5Y)5.44%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
69.51% of the earnings are spent on dividend by NOKIA. This is not a sustainable payout ratio.
The Dividend Rate of NOKIA has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP69.51%
EPS Next 2Y-6.46%
EPS Next 3Y-1.18%
EPA:NOKIA (10/23/2025, 5:29:06 PM)
5.216
+0.48 (+10.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners36.69%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap28.06B
Revenue(TTM)19.25B
Net Income(TTM)1.02B
Analysts71.67
Price Target4.59 (-12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
Yearly Dividend0.13
Dividend Growth(5Y)5.44%
DP69.51%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-25.98%
Min EPS beat(2)-27.18%
Max EPS beat(2)-24.77%
EPS beat(4)1
Avg EPS beat(4)-9.74%
Min EPS beat(4)-27.18%
Max EPS beat(4)30.42%
EPS beat(8)3
Avg EPS beat(8)-6.28%
EPS beat(12)5
Avg EPS beat(12)-5%
EPS beat(16)9
Avg EPS beat(16)-1.1%
Revenue beat(2)0
Avg Revenue beat(2)-5.77%
Min Revenue beat(2)-7.83%
Max Revenue beat(2)-3.71%
Revenue beat(4)1
Avg Revenue beat(4)-5.52%
Min Revenue beat(4)-11.71%
Max Revenue beat(4)1.17%
Revenue beat(8)1
Avg Revenue beat(8)-8.3%
Revenue beat(12)2
Avg Revenue beat(12)-5.98%
Revenue beat(16)3
Avg Revenue beat(16)-4.86%
PT rev (1m)-0.71%
PT rev (3m)-3.29%
EPS NQ rev (1m)-6.95%
EPS NQ rev (3m)-23.72%
EPS NY rev (1m)-2.09%
EPS NY rev (3m)-15.71%
Revenue NQ rev (1m)-0.64%
Revenue NQ rev (3m)-4.16%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-2.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.83 | ||
| Fwd PE | 15.28 | ||
| P/S | 1.46 | ||
| P/FCF | 18.94 | ||
| P/OCF | 13.78 | ||
| P/B | 1.42 | ||
| P/tB | 2.31 | ||
| EV/EBITDA | 9.96 |
EPS(TTM)0.31
EY5.94%
EPS(NY)0.34
Fwd EY6.54%
FCF(TTM)0.28
FCFY5.28%
OCF(TTM)0.38
OCFY7.26%
SpS3.58
BVpS3.67
TBVpS2.26
PEG (NY)N/A
PEG (5Y)1.51
Graham Number5.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.83% | ||
| ROE | 5.17% | ||
| ROCE | 4.56% | ||
| ROIC | 2.89% | ||
| ROICexc | 3.76% | ||
| ROICexgc | 6.03% | ||
| OM | 6.21% | ||
| PM (TTM) | 5.3% | ||
| GM | 44.23% | ||
| FCFM | 7.7% |
ROA(3y)4.94%
ROA(5y)2.38%
ROE(3y)9.78%
ROE(5y)3.69%
ROIC(3y)4.03%
ROIC(5y)4.01%
ROICexc(3y)5.79%
ROICexc(5y)5.89%
ROICexgc(3y)8.68%
ROICexgc(5y)9.27%
ROCE(3y)6.35%
ROCE(5y)6.32%
ROICexgc growth 3Y-10.42%
ROICexgc growth 5Y11%
ROICexc growth 3Y-8.64%
ROICexc growth 5Y12.18%
OM growth 3Y-3.28%
OM growth 5Y14.2%
PM growth 3Y-3.13%
PM growth 5Y194.44%
GM growth 3Y5.04%
GM growth 5Y5.25%
F-Score8
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 2.77 | ||
| Debt/EBITDA | 1.41 | ||
| Cap/Depr | 53.68% | ||
| Cap/Sales | 2.88% | ||
| Interest Coverage | 4.88 | ||
| Cash Conversion | 91.3% | ||
| Profit Quality | 145.2% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.21 | ||
| Altman-Z | 2.36 |
F-Score8
WACC7%
ROIC/WACC0.41
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)3.33%
EPS 3Y1.77%
EPS 5Y11.14%
EPS Q2Q%-33.33%
EPS Next Y-30.06%
EPS Next 2Y-6.46%
EPS Next 3Y-1.18%
EPS Next 5Y-1.04%
Revenue 1Y (TTM)-2.91%
Revenue growth 3Y-4.69%
Revenue growth 5Y-3.79%
Sales Q2Q%1.79%
Revenue Next Year3.32%
Revenue Next 2Y3.45%
Revenue Next 3Y3.06%
Revenue Next 5Y2.53%
EBIT growth 1Y-26.17%
EBIT growth 3Y-7.82%
EBIT growth 5Y9.88%
EBIT Next Year10.01%
EBIT Next 3Y12.49%
EBIT Next 5Y8.23%
FCF growth 1Y3797.37%
FCF growth 3Y-0.72%
FCF growth 5YN/A
OCF growth 1Y187.57%
OCF growth 3Y-1.71%
OCF growth 5Y44.92%