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 excellent profitability rating, but there are some minor concerns on its financial health. NOKIA is valued correctly, but it does not seem to be growing.
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.
NOKIA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
NOKIA has a Return On Assets of 3.26%. This is in the better half of the industry: NOKIA outperforms 76.00% of its industry peers.
Looking at the Return On Equity, with a value of 6.19%, NOKIA is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
NOKIA's Return On Invested Capital of 4.56% is in line compared to the rest of the industry. NOKIA outperforms 60.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NOKIA is below the industry average of 6.88%.
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
NOKIA has a better Profit Margin (6.57%) than 80.00% of its industry peers.
NOKIA's Profit Margin has improved in the last couple of years.
NOKIA has a Operating Margin of 10.27%. This is amongst the best in the industry. NOKIA outperforms 84.00% of its industry peers.
In the last couple of years the Operating Margin of NOKIA has grown nicely.
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
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.
NOKIA has less shares outstanding than it did 5 years ago.
NOKIA has a better debt/assets ratio than last year.
2.2 Solvency
NOKIA has an Altman-Z score of 2.22. 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 (2.22) than 72.00% of its industry peers.
NOKIA has a debt to FCF ratio of 2.35. This is a good value and a sign of high solvency as NOKIA would need 2.35 years to pay back of all of its debts.
NOKIA's Debt to FCF ratio of 2.35 is fine compared to the rest of the industry. NOKIA outperforms 64.00% of its industry peers.
A Debt/Equity ratio of 0.17 indicates that NOKIA is not too dependend on debt financing.
NOKIA has a better Debt to Equity ratio (0.17) than 72.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.17 | ||
| Debt/FCF | 2.35 | ||
| Altman-Z | 2.22 |
ROIC/WACC0.69
WACC6.62%
2.3 Liquidity
A Current Ratio of 1.58 indicates that NOKIA should not have too much problems paying its short term obligations.
NOKIA's Current ratio of 1.58 is in line compared to the rest of the industry. NOKIA outperforms 44.00% of its industry peers.
A Quick Ratio of 1.39 indicates that NOKIA should not have too much problems paying its short term obligations.
NOKIA has a Quick ratio (1.39) which is comparable to the rest of the industry.
| 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 40.26% 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 11.30% yearly.
NOKIA shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.65%.
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)40.26%
EPS 3Y2.01%
EPS 5Y11.3%
EPS Q2Q%82.74%
Revenue 1Y (TTM)-12.65%
Revenue growth 3Y-4.69%
Revenue growth 5Y-3.79%
Sales Q2Q%7.57%
3.2 Future
The Earnings Per Share is expected to grow by 0.81% on average over the next years.
The Revenue is expected to decrease by -1.36% on average over the next years.
EPS Next Y-16.8%
EPS Next 2Y-5.1%
EPS Next 3Y0.81%
EPS Next 5YN/A
Revenue Next Year1.07%
Revenue Next 2Y1.79%
Revenue Next 3Y1.58%
Revenue Next 5Y-1.36%
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
The Price/Earnings ratio is 11.71, which indicates a very decent valuation of NOKIA.
Compared to the rest of the industry, the Price/Earnings ratio of NOKIA indicates a rather cheap valuation: NOKIA is cheaper than 88.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.47, NOKIA is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 13.97, the valuation of NOKIA can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as NOKIA.
The average S&P500 Price/Forward Earnings ratio is at 92.74. NOKIA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.71 | ||
| Fwd PE | 13.97 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NOKIA indicates a rather cheap valuation: NOKIA is cheaper than 84.00% of the companies listed in the same industry.
NOKIA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.14 | ||
| EV/EBITDA | 5.95 |
4.3 Compensation for Growth
The decent profitability rating of NOKIA may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.04
EPS Next 2Y-5.1%
EPS Next 3Y0.81%
5. Dividend
5.1 Amount
NOKIA has a Yearly Dividend Yield of 2.61%. 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 3.61.
NOKIA's Dividend Yield is comparable with the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
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 growing slower than its dividend. This means the dividend growth is not sustainable.
DP56.57%
EPS Next 2Y-5.1%
EPS Next 3Y0.81%
NOKIA OYJ
EPA:NOKIA (2/5/2025, 5:14:09 PM)
4.565
+0.04 (+0.87%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners36.84%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap24.54B
Analysts70
Price Target4.6 (0.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
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)9.11%
Min EPS beat(2)-17.43%
Max EPS beat(2)35.64%
EPS beat(4)3
Avg EPS beat(4)9.03%
Min EPS beat(4)-17.43%
Max EPS beat(4)35.64%
EPS beat(8)3
Avg EPS beat(8)-2.45%
EPS beat(12)7
Avg EPS beat(12)0.98%
EPS beat(16)11
Avg EPS beat(16)39.41%
Revenue beat(2)1
Avg Revenue beat(2)-3.82%
Min Revenue beat(2)-11.71%
Max Revenue beat(2)4.06%
Revenue beat(4)1
Avg Revenue beat(4)-6.5%
Min Revenue beat(4)-11.71%
Max Revenue beat(4)4.06%
Revenue beat(8)1
Avg Revenue beat(8)-7.37%
Revenue beat(12)3
Avg Revenue beat(12)-4.74%
Revenue beat(16)5
Avg Revenue beat(16)-3.67%
PT rev (1m)3.04%
PT rev (3m)7.05%
EPS NQ rev (1m)6.25%
EPS NQ rev (3m)-17.48%
EPS NY rev (1m)0.53%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)0.34%
Revenue NQ rev (3m)-11.16%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.71 | ||
| Fwd PE | 13.97 | ||
| P/S | 1.26 | ||
| P/FCF | 12.14 | ||
| P/OCF | 9.84 | ||
| P/B | 1.19 | ||
| P/tB | 1.74 | ||
| EV/EBITDA | 5.95 |
EPS(TTM)0.39
EY8.54%
EPS(NY)0.33
Fwd EY7.16%
FCF(TTM)0.38
FCFY8.24%
OCF(TTM)0.46
OCFY10.16%
SpS3.62
BVpS3.84
TBVpS2.63
PEG (NY)N/A
PEG (5Y)1.04
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 | 2.22 |
F-Score7
WACC6.62%
ROIC/WACC0.69
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)40.26%
EPS 3Y2.01%
EPS 5Y11.3%
EPS Q2Q%82.74%
EPS Next Y-16.8%
EPS Next 2Y-5.1%
EPS Next 3Y0.81%
EPS Next 5YN/A
Revenue 1Y (TTM)-12.65%
Revenue growth 3Y-4.69%
Revenue growth 5Y-3.79%
Sales Q2Q%7.57%
Revenue Next Year1.07%
Revenue Next 2Y1.79%
Revenue Next 3Y1.58%
Revenue Next 5Y-1.36%
EBIT growth 1Y18.04%
EBIT growth 3Y-1.11%
EBIT growth 5Y14.61%
EBIT Next Year30.52%
EBIT Next 3Y11.26%
EBIT Next 5Y11.1%
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%