SWX:NOKIA

Stock Analysis Report

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Executive Summary

Nokia Corporation engages in the network and technology businesses worldwide. More Details


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has Nokia's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NOKIA is less volatile than 75% of Swiss stocks over the past 3 months, typically moving +/- 0% a week.

Volatility Over Time: NOKIA's weekly volatility (0%) has been stable over the past year.


Market Performance


7 Day Return

0%

NOKIA

1.8%

CH Communications

0.1%

CH Market


1 Year Return

0%

NOKIA

17.0%

CH Communications

-0.2%

CH Market

Return vs Industry: NOKIA underperformed the Swiss Communications industry which returned 17% over the past year.

Return vs Market: NOKIA matched the Swiss Market which returned -0.2% over the past year.


Shareholder returns

NOKIAIndustryMarket
7 Day0%1.8%0.1%
30 Day0%9.9%8.4%
90 Day0%-3.0%3.0%
1 Year0%0%18.1%17.0%3.4%-0.2%
3 Year13.0%6.4%40.8%33.6%19.8%4.9%
5 Year-22.6%-32.9%-1.7%-13.2%38.7%15.8%

Long-Term Price Volatility Vs. Market

How volatile is Nokia's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Nokia undervalued compared to its fair value and its price relative to the market?

25.91x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NOKIA (CHF5) is trading above our estimate of fair value (CHF4.9)

Significantly Below Fair Value: NOKIA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NOKIA is good value based on its PE Ratio (25.9x) compared to the XE Communications industry average (27.7x).

PE vs Market: NOKIA is poor value based on its PE Ratio (25.9x) compared to the Swiss market (22.8x).


Price to Earnings Growth Ratio

PEG Ratio: NOKIA is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: NOKIA is good value based on its PB Ratio (1.3x) compared to the XE Communications industry average (2.1x).


Next Steps

Future Growth

How is Nokia forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

26.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NOKIA's forecast earnings growth (26.1% per year) is above the savings rate (-0.2%).

Earnings vs Market: NOKIA's earnings (26.1% per year) are forecast to grow faster than the Swiss market (13.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NOKIA's revenue (1.8% per year) is forecast to grow slower than the Swiss market (4.8% per year).

High Growth Revenue: NOKIA's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NOKIA's Return on Equity is forecast to be low in 3 years time (11.3%).


Next Steps

Past Performance

How has Nokia performed over the past 5 years?

-1.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NOKIA has a large one-off loss of €361.0M impacting its September 30 2020 financial results.

Growing Profit Margin: NOKIA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: NOKIA's earnings have declined by 1.1% per year over the past 5 years.

Accelerating Growth: NOKIA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: NOKIA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Communications industry (2.9%).


Return on Equity

High ROE: NOKIA's Return on Equity (4.9%) is considered low.


Next Steps

Financial Health

How is Nokia's financial position?


Financial Position Analysis

Short Term Liabilities: NOKIA's short term assets (€17.4B) exceed its short term liabilities (€11.4B).

Long Term Liabilities: NOKIA's short term assets (€17.4B) exceed its long term liabilities (€12.2B).


Debt to Equity History and Analysis

Debt Level: NOKIA's debt to equity ratio (37.9%) is considered satisfactory.

Reducing Debt: NOKIA's debt to equity ratio has increased from 30.1% to 37.9% over the past 5 years.

Debt Coverage: NOKIA's debt is well covered by operating cash flow (42.8%).

Interest Coverage: NOKIA's interest payments on its debt are well covered by EBIT (15.9x coverage).


Balance Sheet


Next Steps

Dividend

What is Nokia current dividend yield, its reliability and sustainability?

2.19%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate NOKIA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate NOKIA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NOKIA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NOKIA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: NOKIA is not paying a notable dividend for the Swiss market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NOKIA's dividend in 3 years as they are not forecast to pay a notable one for the Swiss market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.0yrs

Average management tenure


CEO

Pekka Lundmark (57 yo)

0.25

Tenure

Mr. Pekka Ilmari Lundmark, M.Sc. (Eng.), has been President and Chief Executive Officer at Nokia Corporation since August 1, 2020. He had been President and Chief Executive Officer of Fortum Oyj since Sept...


Leadership Team

NamePositionTenureCompensationOwnership
Pekka Lundmark
President & CEO0.25yrno datano data
Marco Wiren
Chief Financial Officer0.17yrno datano data
Marcus Weldon
Corporate CTO & President of Nokia Bell Labsno datano data0.0012%
€ 241.7k
Matt Shimao
Head of Investor Relationsno datano datano data
Nassib Abou-Khalil
Chief Legal Officer1.25yrsno data0.00058%
€ 120.9k
Susan Sheehan
Senior Vice President of Communications8.42yrsno datano data
Barry French
Chief Marketing Officer6.83yrsno data0.0054%
€ 1.1m
Stephanie Werner-Dietz
Chief Human Resources Officer0.83yrno datano data
Sergei Khraby
Head of Belarussian office14.42yrsno datano data
Kristian Pullola
Executive Officer0.25yrno data0.0062%
€ 1.3m
Rajeev Suri
0.33yr€7.60m0.050%
€ 10.4m
Maria Varsellona
Executive Officer1.25yrsno datano data

1.0yrs

Average Tenure

52yo

Average Age

Experienced Management: NOKIA's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Edward Kozel
Independent Non-Executive Director3.5yrs€215.00k0.0012%
€ 241.7k
Elizabeth Nelson
Independent Non-Executive Director8.5yrs€200.00k0.0016%
€ 327.2k
Sari Baldauf
Independent Chair of the Board0.50yr€197.00k0.0020%
€ 425.1k
Kari Stadigh
Independent Vice Chair of the Board0.50yr€172.00k0.0051%
€ 1.1m
Jeanette Horan
Independent Non-Executive Director3.5yrs€197.00k0.00073%
€ 152.1k
Søren Skou
Director1.5yrs€160.00k0.00025%
€ 52.1k
Bruce Brown
Independent Non-Executive Director8.5yrs€217.00k0.0026%
€ 535.6k
Clara M. Smits-Nusteling
Independent Non-Executive Director4.42yrs€210.00k0.0010%
€ 214.6k
Thomas Dannenfeldt
Independent Director0.50yrno datano data
Nozomi Maehara
Audit & Supervisory Board Memberno datano datano data

3.5yrs

Average Tenure

61.5yo

Average Age

Experienced Board: NOKIA's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Nokia Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nokia Corporation
  • Ticker: NOKIA
  • Exchange: SWX
  • Founded: 1865
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: €19.240b
  • Listing Market Cap: €20.839b
  • Shares outstanding: 5.63b
  • Website: https://www.nokia.com

Number of Employees


Location

  • Nokia Corporation
  • Karakaari 7
  • Espoo
  • Uusimaa
  • 2610
  • Finland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NOKB.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJan 1992
NOKIAHLSE (OMX Nordic Exchange Helsinki)YesCommon StockFIEURJan 1992
NOA3DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
NOKIAENXTPA (Euronext Paris)YesCommon StockFREURJan 1992
NOKIASWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1992
0HAFLSE (London Stock Exchange)YesCommon StockGBEURJan 1992
NOKIABIT (Borsa Italiana)YesCommon StockITEURJan 1992
NOKIA SEKOM (OMX Nordic Exchange Stockholm)YesCommon StockSESEKJan 1992
NOA3XTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1992
NOKIABUSE (Budapest Stock Exchange)YesCommon StockHUHUFJan 1992
NOKIASEP (The Stock Exchange Prague Co. Ltd.)YesCommon StockCZCZKJan 1992
NOKIWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1992
NOKNYSE (New York Stock Exchange)ADR EACH REPR 1 ORD NPVUSUSDJul 1994
NOK NBMV (Bolsa Mexicana de Valores)ADR EACH REPR 1 ORD NPVMXMXNJul 1994
NOAABST (Boerse-Stuttgart)ADR EACH REPR 1 ORD NPVDEEURJul 1994
NOAAXTRA (XETRA Trading Platform)ADR EACH REPR 1 ORD NPVDEEURJul 1994
0K8DLSE (London Stock Exchange)ADR EACH REPR 1 ORD NPVGBUSDJul 1994
NOKABASE (Buenos Aires Stock Exchange)CEDEAR EACH REP 1/5 ADRARARSJan 2001

Biography

Nokia Corporation engages in the network and technology businesses worldwide. The company operates in four segments: Ultra Broadband Networks, Global Services, IP Networks and Applications, and Nokia Techn...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/30 18:16
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.