NOKIA OYJ (NOKIA.PA) Stock Fundamental Analysis
EPA:NOKIA - Euronext Paris - Matif - FI0009000681 - Common Stock - Currency: EUR
NOKIA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 25 industry peers in the Communications Equipment industry. NOKIA has an excellent profitability rating, but there are some minor concerns on its financial health. 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
With a decent Return On Assets value of 3.26%, NOKIA is doing good in the industry, outperforming 76.92% of the companies in the same industry.
NOKIA has a better Return On Equity (6.19%) than 76.92% of its industry peers.
NOKIA has a better Return On Invested Capital (4.56%) than 69.23% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NOKIA is below the industry average of 7.38%.
The 3 year average ROIC (4.32%) for NOKIA is below the current ROIC(4.56%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.26% | ||
| ROE | 6.19% | ||
| ROIC | 4.56% |
ROA(3y)4.94%
ROA(5y)2.38%
ROE(3y)9.78%
ROE(5y)3.69%
ROIC(3y)4.32%
ROIC(5y)4.18%
1.3 Margins
With an excellent Profit Margin value of 6.57%, NOKIA belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.
In the last couple of years the Profit Margin of NOKIA has grown nicely.
With an excellent Operating Margin value of 10.27%, NOKIA belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
NOKIA's Operating Margin has improved in the last couple of years.
NOKIA has a Gross Margin (45.72%) which is in line with its industry peers.
NOKIA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.27% | ||
| PM (TTM) | 6.57% | ||
| GM | 45.72% |
OM growth 3Y3.76%
OM growth 5Y19.12%
PM growth 3Y-3.13%
PM growth 5Y194.44%
GM growth 3Y5.04%
GM growth 5Y5.25%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), NOKIA is destroying value.
The number of shares outstanding for NOKIA has been reduced compared to 1 year ago.
The number of shares outstanding for NOKIA has been reduced compared to 5 years ago.
NOKIA has a better debt/assets ratio than last year.
2.2 Solvency
NOKIA has an Altman-Z score of 2.29. 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.
NOKIA has a better Altman-Z score (2.29) than 61.54% of its industry peers.
The Debt to FCF ratio of NOKIA is 2.35, which is a good value as it means it would take NOKIA, 2.35 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.35, NOKIA is doing good in the industry, outperforming 76.92% of the companies in the same industry.
NOKIA has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.
NOKIA has a better Debt to Equity ratio (0.17) than 80.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.35 | ||
| Altman-Z | 2.29 |
ROIC/WACC0.66
WACC6.92%
2.3 Liquidity
NOKIA has a Current Ratio of 1.58. 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 1.58 is in line compared to the rest of the industry. NOKIA outperforms 53.85% of its industry peers.
A Quick Ratio of 1.39 indicates that NOKIA should not have too much problems paying its short term obligations.
The Quick ratio of NOKIA (1.39) is better than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 39.29% over the past year.
The Earnings Per Share has been growing by 11.14% on average over the past years. This is quite good.
Looking at the last year, NOKIA shows a very negative growth in Revenue. The Revenue has decreased by -12.65% in the last year.
Measured over the past years, NOKIA shows a decrease in Revenue. The Revenue has been decreasing by -3.79% on average per year.
EPS 1Y (TTM)39.29%
EPS 3Y1.77%
EPS 5Y11.14%
EPS Q2Q%80%
Revenue 1Y (TTM)-12.65%
Revenue growth 3Y-4.69%
Revenue growth 5Y-3.79%
Sales Q2Q%4.84%
3.2 Future
The Earnings Per Share is expected to decrease by -0.26% on average over the next years.
NOKIA is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.34% yearly.
EPS Next Y-15.89%
EPS Next 2Y-3.71%
EPS Next 3Y-0.26%
EPS Next 5YN/A
Revenue Next Year2.42%
Revenue Next 2Y2.53%
Revenue Next 3Y2.43%
Revenue Next 5Y-1.34%
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.
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
The Price/Earnings ratio is 12.32, which indicates a correct valuation of NOKIA.
Based on the Price/Earnings ratio, NOKIA is valued cheaper than 96.15% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. NOKIA is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 14.65 indicates a correct valuation of NOKIA.
Based on the Price/Forward Earnings ratio, NOKIA is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
NOKIA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.32 | ||
| Fwd PE | 14.65 |
4.2 Price Multiples
NOKIA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. NOKIA is cheaper than 80.77% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NOKIA is valued a bit cheaper than the industry average as 73.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.98 | ||
| EV/EBITDA | 6.59 |
4.3 Compensation for Growth
The decent profitability rating of NOKIA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.11
EPS Next 2Y-3.71%
EPS Next 3Y-0.26%
5. Dividend
5.1 Amount
NOKIA has a Yearly Dividend Yield of 2.90%.
NOKIA's Dividend Yield is a higher than the industry average which is at 3.51.
NOKIA's Dividend Yield is a higher than the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
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
56.57% of the earnings are spent on dividend by NOKIA. This is a bit on the high side, but may be sustainable.
NOKIA's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP56.57%
EPS Next 2Y-3.71%
EPS Next 3Y-0.26%
EPA:NOKIA (3/7/2025, 7:00:00 PM)
4.804
-0.02 (-0.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners35.57%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap26.23B
Analysts70.56
Price Target4.98 (3.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
Yearly Dividend0.13
Dividend Growth(5Y)5.44%
DP56.57%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.49%
Min EPS beat(2)-17.43%
Max EPS beat(2)30.42%
EPS beat(4)3
Avg EPS beat(4)7.73%
Min EPS beat(4)-17.43%
Max EPS beat(4)30.42%
EPS beat(8)3
Avg EPS beat(8)-3.1%
EPS beat(12)7
Avg EPS beat(12)0.55%
EPS beat(16)11
Avg EPS beat(16)39.08%
Revenue beat(2)1
Avg Revenue beat(2)-5.27%
Min Revenue beat(2)-11.71%
Max Revenue beat(2)1.17%
Revenue beat(4)1
Avg Revenue beat(4)-7.23%
Min Revenue beat(4)-11.71%
Max Revenue beat(4)1.17%
Revenue beat(8)1
Avg Revenue beat(8)-7.73%
Revenue beat(12)3
Avg Revenue beat(12)-4.98%
Revenue beat(16)5
Avg Revenue beat(16)-3.85%
PT rev (1m)8.32%
PT rev (3m)12.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.83%
EPS NY rev (1m)0.39%
EPS NY rev (3m)0.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.75%
Revenue NY rev (1m)1.25%
Revenue NY rev (3m)1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.32 | ||
| Fwd PE | 14.65 | ||
| P/S | 1.35 | ||
| P/FCF | 12.98 | ||
| P/OCF | 10.52 | ||
| P/B | 1.27 | ||
| P/tB | 1.86 | ||
| EV/EBITDA | 6.59 |
EPS(TTM)0.39
EY8.12%
EPS(NY)0.33
Fwd EY6.83%
FCF(TTM)0.37
FCFY7.71%
OCF(TTM)0.46
OCFY9.5%
SpS3.56
BVpS3.78
TBVpS2.59
PEG (NY)N/A
PEG (5Y)1.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.26% | ||
| ROE | 6.19% | ||
| ROCE | 7.19% | ||
| ROIC | 4.56% | ||
| ROICexc | 6.71% | ||
| ROICexgc | 10.26% | ||
| OM | 10.27% | ||
| PM (TTM) | 6.57% | ||
| GM | 45.72% | ||
| FCFM | 10.4% |
ROA(3y)4.94%
ROA(5y)2.38%
ROE(3y)9.78%
ROE(5y)3.69%
ROIC(3y)4.32%
ROIC(5y)4.18%
ROICexc(3y)6.21%
ROICexc(5y)6.14%
ROICexgc(3y)9.32%
ROICexgc(5y)9.66%
ROCE(3y)6.81%
ROCE(5y)6.6%
ROICexcg growth 3Y-3.96%
ROICexcg growth 5Y15.73%
ROICexc growth 3Y-2.03%
ROICexc growth 5Y16.98%
OM growth 3Y3.76%
OM growth 5Y19.12%
PM growth 3Y-3.13%
PM growth 5Y194.44%
GM growth 3Y5.04%
GM growth 5Y5.25%
F-Score7
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.35 | ||
| Debt/EBITDA | 1.19 | ||
| Cap/Depr | 46.55% | ||
| Cap/Sales | 2.43% | ||
| Interest Coverage | 7.59 | ||
| Cash Conversion | 82.82% | ||
| Profit Quality | 158.14% | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 2.29 |
F-Score7
WACC6.92%
ROIC/WACC0.66
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)39.29%
EPS 3Y1.77%
EPS 5Y11.14%
EPS Q2Q%80%
EPS Next Y-15.89%
EPS Next 2Y-3.71%
EPS Next 3Y-0.26%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.65%
Revenue growth 3Y-4.69%
Revenue growth 5Y-3.79%
Sales Q2Q%4.84%
Revenue Next Year2.42%
Revenue Next 2Y2.53%
Revenue Next 3Y2.43%
Revenue Next 5Y-1.34%
EBIT growth 1Y18.04%
EBIT growth 3Y-1.11%
EBIT growth 5Y14.61%
EBIT Next Year24.81%
EBIT Next 3Y9.61%
EBIT Next 5Y9.86%
FCF growth 1Y203.91%
FCF growth 3Y-0.72%
FCF growth 5YN/A
OCF growth 1Y89.29%
OCF growth 3Y-1.71%
OCF growth 5Y44.92%