NOKIA OYJ (NOKIA.PA) Stock Fundamental Analysis
Europe - EPA:NOKIA - FI0009000681 - Common Stock
3.96 EUR
+0.13 (+3.37%)
We assign a fundamental rating of 5 out of 10 to NOKIA. NOKIA was compared to 27 industry peers in the Communications Equipment industry. NOKIA has an average financial health and profitability rating. NOKIA is valued correctly, 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.
NOKIA had positive earnings in 4 of the past 5 years.
Each year in the past 5 years NOKIA had a positive operating cash flow.
1.2 Ratios
NOKIA's Return On Assets of 2.83% is fine compared to the rest of the industry. NOKIA outperforms 70.37% of its industry peers.
NOKIA has a Return On Equity of 5.17%. This is in the better half of the industry: NOKIA outperforms 70.37% of its industry peers.
With a decent Return On Invested Capital value of 2.89%, NOKIA is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NOKIA is significantly below the industry average of 11.62%.
| 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
The Profit Margin of NOKIA (5.30%) is better than 74.07% of its industry peers.
In the last couple of years the Profit Margin of NOKIA has grown nicely.
NOKIA's Operating Margin of 6.21% is fine compared to the rest of the industry. NOKIA outperforms 70.37% of its industry peers.
NOKIA's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 44.23%, NOKIA perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
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.
Compared to 1 year ago, NOKIA has less shares outstanding
Compared to 5 years ago, NOKIA has less shares outstanding
NOKIA has a better debt/assets ratio than last year.
2.2 Solvency
NOKIA has an Altman-Z score of 2.18. This is not the best score and indicates that NOKIA is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.18, NOKIA is in line with its industry, outperforming 59.26% of the companies in the same industry.
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.
The Debt to FCF ratio of NOKIA (2.77) is better than 66.67% of its industry peers.
NOKIA has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.16, NOKIA is doing good in the industry, outperforming 74.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 2.77 | ||
| Altman-Z | 2.18 |
ROIC/WACC0.42
WACC6.89%
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.
NOKIA's Current ratio of 1.46 is in line compared to the rest of the industry. NOKIA outperforms 40.74% of its industry peers.
A Quick Ratio of 1.21 indicates that NOKIA should not have too much problems paying its short term obligations.
The Quick ratio of NOKIA (1.21) is comparable to the rest of the 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.
Measured over the past years, NOKIA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.14% on average per year.
The Revenue has decreased by -2.91% in the past year.
The Revenue has been decreasing by -3.79% on average over the past years.
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
NOKIA is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.36% yearly.
Based on estimates for the next years, NOKIA will show a small growth in Revenue. The Revenue will grow by 2.54% on average per year.
EPS Next Y-28.57%
EPS Next 2Y-6.17%
EPS Next 3Y-1.25%
EPS Next 5Y-0.36%
Revenue Next Year3.49%
Revenue Next 2Y3.45%
Revenue Next 3Y3.05%
Revenue Next 5Y2.54%
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 12.77, NOKIA is valued correctly.
NOKIA's Price/Earnings ratio is rather cheap when compared to the industry. NOKIA is cheaper than 92.59% of the companies in the same industry.
NOKIA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
A Price/Forward Earnings ratio of 11.53 indicates a reasonable valuation of NOKIA.
Based on the Price/Forward Earnings ratio, NOKIA is valued cheaper than 92.59% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, NOKIA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.77 | ||
| Fwd PE | 11.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, NOKIA is valued cheaper than 85.19% of the companies in the same industry.
66.67% of the companies in the same industry are more expensive than NOKIA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.38 | ||
| EV/EBITDA | 7.78 |
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)1.15
EPS Next 2Y-6.17%
EPS Next 3Y-1.25%
5. Dividend
5.1 Amount
NOKIA has a Yearly Dividend Yield of 3.58%. Purely for dividend investing, there may be better candidates out there.
NOKIA's Dividend Yield is rather good when compared to the industry average which is at 6.04. NOKIA pays more dividend than 81.48% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, NOKIA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
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
NOKIA pays out 69.51% of its income as dividend. 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-6.17%
EPS Next 3Y-1.25%
EPA:NOKIA (9/17/2025, 7:00:00 PM)
3.96
+0.13 (+3.37%)
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 Cap21.30B
Analysts70
Price Target4.63 (16.92%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.58% |
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)0.33%
PT rev (3m)-6.55%
EPS NQ rev (1m)0.79%
EPS NQ rev (3m)-19.76%
EPS NY rev (1m)-13.92%
EPS NY rev (3m)-13.92%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.75%
Revenue NY rev (1m)-0.67%
Revenue NY rev (3m)-2.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.77 | ||
| Fwd PE | 11.53 | ||
| P/S | 1.11 | ||
| P/FCF | 14.38 | ||
| P/OCF | 10.46 | ||
| P/B | 1.08 | ||
| P/tB | 1.76 | ||
| EV/EBITDA | 7.78 |
EPS(TTM)0.31
EY7.83%
EPS(NY)0.34
Fwd EY8.67%
FCF(TTM)0.28
FCFY6.95%
OCF(TTM)0.38
OCFY9.56%
SpS3.58
BVpS3.67
TBVpS2.26
PEG (NY)N/A
PEG (5Y)1.15
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%
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-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 | 2.18 |
F-Score8
WACC6.89%
ROIC/WACC0.42
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-28.57%
EPS Next 2Y-6.17%
EPS Next 3Y-1.25%
EPS Next 5Y-0.36%
Revenue 1Y (TTM)-2.91%
Revenue growth 3Y-4.69%
Revenue growth 5Y-3.79%
Sales Q2Q%1.79%
Revenue Next Year3.49%
Revenue Next 2Y3.45%
Revenue Next 3Y3.05%
Revenue Next 5Y2.54%
EBIT growth 1Y-26.17%
EBIT growth 3Y-7.82%
EBIT growth 5Y9.88%
EBIT Next Year11.92%
EBIT Next 3Y12.52%
EBIT Next 5Y8.37%
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%