NOKIA OYJ (NOKIA.PA) Stock Fundamental Analysis
EPA:NOKIA - Euronext Paris - Matif - FI0009000681 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to NOKIA. NOKIA was compared to 25 industry peers in the Communications Equipment industry. NOKIA has an average financial health and profitability rating. NOKIA has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year NOKIA was profitable.
In the past year NOKIA had a positive cash flow from operations.
Of the past 5 years NOKIA 4 years were profitable.
Each year in the past 5 years NOKIA had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.00%, NOKIA is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 3.79%, NOKIA is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
NOKIA has a Return On Invested Capital (3.60%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NOKIA is significantly below the industry average of 9.99%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2% | ||
| ROE | 3.79% | ||
| ROIC | 3.6% |
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
NOKIA has a Profit Margin of 4.10%. This is in the better half of the industry: NOKIA outperforms 68.00% of its industry peers.
In the last couple of years the Profit Margin of NOKIA has grown nicely.
NOKIA's Operating Margin of 8.08% is fine compared to the rest of the industry. NOKIA outperforms 64.00% of its industry peers.
In the last couple of years the Operating Margin of NOKIA has grown nicely.
NOKIA has a Gross Margin of 44.23%. This is comparable to the rest of the industry: NOKIA outperforms 48.00% of its industry peers.
In the last couple of years the Gross Margin of NOKIA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.08% | ||
| PM (TTM) | 4.1% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so NOKIA is destroying value.
NOKIA has less shares outstanding than it did 1 year ago.
NOKIA has less shares outstanding than it did 5 years ago.
NOKIA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.11 indicates that NOKIA is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.11, NOKIA perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
The Debt to FCF ratio of NOKIA is 2.83, which is a good value as it means it would take NOKIA, 2.83 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 2.83, NOKIA perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
NOKIA has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of NOKIA (0.14) is better than 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 2.83 | ||
| Altman-Z | 2.11 |
ROIC/WACC0.53
WACC6.84%
2.3 Liquidity
NOKIA has a Current Ratio of 1.36. This is a normal value and indicates that NOKIA is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.36, NOKIA is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
NOKIA has a Quick Ratio of 1.15. This is a normal value and indicates that NOKIA is financially healthy and should not expect problems in meeting its short term obligations.
NOKIA has a Quick ratio (1.15) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.15 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.45% over the past year.
NOKIA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.14% yearly.
The Revenue has decreased by -9.02% in the past year.
The Revenue has been decreasing by -3.79% on average over the past years.
EPS 1Y (TTM)6.45%
EPS 3Y1.77%
EPS 5Y11.14%
EPS Q2Q%-66.67%
Revenue 1Y (TTM)-9.02%
Revenue growth 3Y-4.69%
Revenue growth 5Y-3.79%
Sales Q2Q%-5.94%
3.2 Future
Based on estimates for the next years, NOKIA will show a small growth in Earnings Per Share. The EPS will grow by 0.13% on average per year.
Based on estimates for the next years, NOKIA will show a small growth in Revenue. The Revenue will grow by 2.41% on average per year.
EPS Next Y-17.02%
EPS Next 2Y-2.97%
EPS Next 3Y0.5%
EPS Next 5Y0.13%
Revenue Next Year6.48%
Revenue Next 2Y4.93%
Revenue Next 3Y3.99%
Revenue Next 5Y2.41%
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 12.95 indicates a correct valuation of NOKIA.
Based on the Price/Earnings ratio, NOKIA is valued cheaper than 88.00% of the companies in the same industry.
NOKIA is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.63, which indicates a very decent valuation of NOKIA.
Based on the Price/Forward Earnings ratio, NOKIA is valued cheaply inside the industry as 92.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, NOKIA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.95 | ||
| Fwd PE | 11.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NOKIA is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, NOKIA is valued a bit cheaper than the industry average as 68.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.88 | ||
| EV/EBITDA | 7.68 |
4.3 Compensation for Growth
NOKIA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.16
EPS Next 2Y-2.97%
EPS Next 3Y0.5%
5. Dividend
5.1 Amount
NOKIA has a Yearly Dividend Yield of 1.91%. Purely for dividend investing, there may be better candidates out there.
NOKIA's Dividend Yield is a higher than the industry average which is at 5.67.
NOKIA's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
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
91.46% of the earnings are spent on dividend by NOKIA. This is not a sustainable payout ratio.
The dividend of NOKIA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP91.46%
EPS Next 2Y-2.97%
EPS Next 3Y0.5%
EPA:NOKIA (7/11/2025, 7:00:00 PM)
4.272
-0.1 (-2.2%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners34.44%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap23.02B
Analysts70.81
Price Target4.95 (15.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Yearly Dividend0.13
Dividend Growth(5Y)5.44%
DP91.46%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.62%
Min EPS beat(2)-27.18%
Max EPS beat(2)30.42%
EPS beat(4)2
Avg EPS beat(4)-2.5%
Min EPS beat(4)-27.18%
Max EPS beat(4)30.42%
EPS beat(8)3
Avg EPS beat(8)-4.29%
EPS beat(12)6
Avg EPS beat(12)-1.77%
EPS beat(16)10
Avg EPS beat(16)6.47%
Revenue beat(2)1
Avg Revenue beat(2)-1.27%
Min Revenue beat(2)-3.71%
Max Revenue beat(2)1.17%
Revenue beat(4)1
Avg Revenue beat(4)-5.83%
Min Revenue beat(4)-11.71%
Max Revenue beat(4)1.17%
Revenue beat(8)1
Avg Revenue beat(8)-8.12%
Revenue beat(12)3
Avg Revenue beat(12)-5.18%
Revenue beat(16)4
Avg Revenue beat(16)-4.36%
PT rev (1m)0.26%
PT rev (3m)-3.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.44%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.65%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)2.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.95 | ||
| Fwd PE | 11.63 | ||
| P/S | 1.2 | ||
| P/FCF | 12.88 | ||
| P/OCF | 9.94 | ||
| P/B | 1.11 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | 7.68 |
EPS(TTM)0.33
EY7.72%
EPS(NY)0.37
Fwd EY8.6%
FCF(TTM)0.33
FCFY7.76%
OCF(TTM)0.43
OCFY10.06%
SpS3.56
BVpS3.85
TBVpS2.34
PEG (NY)N/A
PEG (5Y)1.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2% | ||
| ROE | 3.79% | ||
| ROCE | 5.68% | ||
| ROIC | 3.6% | ||
| ROICexc | 4.9% | ||
| ROICexgc | 8.24% | ||
| OM | 8.08% | ||
| PM (TTM) | 4.1% | ||
| GM | 44.23% | ||
| FCFM | 9.32% |
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%
ROICexcg growth 3Y-10.42%
ROICexcg 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-Score6
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 2.83 | ||
| Debt/EBITDA | 1.16 | ||
| Cap/Depr | 52.02% | ||
| Cap/Sales | 2.76% | ||
| Interest Coverage | 6.24 | ||
| Cash Conversion | 90.29% | ||
| Profit Quality | 227.64% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.15 | ||
| Altman-Z | 2.11 |
F-Score6
WACC6.84%
ROIC/WACC0.53
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)6.45%
EPS 3Y1.77%
EPS 5Y11.14%
EPS Q2Q%-66.67%
EPS Next Y-17.02%
EPS Next 2Y-2.97%
EPS Next 3Y0.5%
EPS Next 5Y0.13%
Revenue 1Y (TTM)-9.02%
Revenue growth 3Y-4.69%
Revenue growth 5Y-3.79%
Sales Q2Q%-5.94%
Revenue Next Year6.48%
Revenue Next 2Y4.93%
Revenue Next 3Y3.99%
Revenue Next 5Y2.41%
EBIT growth 1Y-6.92%
EBIT growth 3Y-7.82%
EBIT growth 5Y9.88%
EBIT Next Year11.92%
EBIT Next 3Y12.52%
EBIT Next 5Y7.08%
FCF growth 1Y404.8%
FCF growth 3Y-0.72%
FCF growth 5YN/A
OCF growth 1Y132.06%
OCF growth 3Y-1.71%
OCF growth 5Y44.92%