XTRA:NOA3

Stock Analysis Report

Executive Summary

Nokia Corporation engages in the network and technology businesses worldwide.


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: NOA3 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.4%

NOA3

2.6%

DE Communications

2.0%

DE Market


1 Year Return

-28.7%

NOA3

11.2%

DE Communications

15.1%

DE Market

Return vs Industry: NOA3 underperformed the German Communications industry which returned 11.5% over the past year.

Return vs Market: NOA3 underperformed the German Market which returned 15% over the past year.


Shareholder returns

NOA3IndustryMarket
7 Day2.4%2.6%2.0%
30 Day5.7%2.5%1.0%
90 Day27.4%-4.2%3.8%
1 Year-27.2%-28.7%11.8%11.2%18.6%15.1%
3 Year-8.5%-16.2%1.8%1.5%16.8%6.6%
5 Year-34.1%-44.1%107.2%106.8%23.7%6.7%

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?

40.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NOA3 (€3.95) is trading below our estimate of fair value (€6.58)

Significantly Below Fair Value: NOA3 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NOA3 is poor value based on its PE Ratio (1585.2x) compared to the Communications industry average (19.1x).

PE vs Market: NOA3 is poor value based on its PE Ratio (1585.2x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: NOA3 is poor value based on its PEG Ratio (42.2x)


Price to Book Ratio

PB vs Industry: NOA3 is good value based on its PB Ratio (1.4x) compared to the DE Communications industry average (3.1x).


Next Steps

Future Growth

How is Nokia forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

37.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NOA3's forecast earnings growth (37.5% per year) is above the savings rate (-0.4%).

Earnings vs Market: NOA3's earnings (37.5% per year) are forecast to grow faster than the German market (13.3% per year).

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

Revenue vs Market: NOA3's revenue (2.2% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: NOA3's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NOA3's Return on Equity is forecast to be low in 3 years time (12.2%).


Next Steps

Past Performance

How has Nokia performed over the past 5 years?

-58.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NOA3 has a large one-off loss of €607.0M impacting its December 31 2019 financial results.

Growing Profit Margin: NOA3 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: NOA3's earnings have declined by -58.8% per year over the past 5 years.

Accelerating Growth: NOA3 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: NOA3 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Communications industry (49.1%).


Return on Equity

High ROE: NOA3's Return on Equity (0.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nokia's financial position?


Financial Position Analysis

Short Term Liabilities: NOA3's short term assets (€16.8B) exceed its short term liabilities (€12.1B).

Long Term Liabilities: NOA3's short term assets (€16.8B) exceed its long term liabilities (€11.7B).


Debt to Equity History and Analysis

Debt Level: NOA3's debt to equity ratio (27.8%) is considered satisfactory.

Reducing Debt: NOA3's debt to equity ratio has reduced from 31.4% to 27.8% over the past 5 years.

Debt Coverage: NOA3's debt is not well covered by operating cash flow (9.1%).

Interest Coverage: NOA3's interest payments on its debt are well covered by EBIT (3x coverage).


Balance Sheet

Inventory Level: NOA3 has a low level of unsold assets or inventory.

Debt Coverage by Assets: NOA3's debt is covered by short term assets (assets are 3.9x debt).


Next Steps

Dividend

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

3.27%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.3%markettop25%3.6%industryaverage1.9%forecastin3Years3.3%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate NOA3's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate NOA3's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NOA3's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NOA3's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: NOA3 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NOA3's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Rajeev Suri (52yo)

5.8yrs

Tenure

€7,596,098

Compensation

Mr. Rajeev Suri has been Director at Stryker Corp. since May 02, 2018. He has been the Chief Executive Officer and President of Nokia Corporation since May 01, 2014. Mr. Suri served as the Chief Executive  ...


CEO Compensation Analysis

Compensation vs Market: Rajeev's total compensation ($USD0.00) is below average for companies of similar size in the German market ($USD4.37M).

Compensation vs Earnings: Rajeev's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Rajeev Suri
President & CEO5.8yrs€7.60m0.044% 9.8m
Kristian Pullola
Chief Financial Officer3.1yrsno data0.0059% 1.3m
Marcus Weldon
Corporate CTO & President of Nokia Bell Labs0yrsno data0.0012% 261.5k
Matt Shimao
Head of Investor Relations0yrsno datano data
Nassib Abou-Khalil
Chief Legal Officer0.5yrsno datano data
Susan Sheehan
Senior Vice President of Communications7.7yrsno datano data
Barry French
Chief Marketing Officer6.1yrsno data0.0045% 1.0m
Stephanie Werner
Chief Human Resources Officer0.08yrsno datano data
Sergei Khraby
Head of Belarussian office13.7yrsno datano data
Hans-Jürgen Bill
Executive Officer0.08yrsno data0.0039% 855.4k

4.4yrs

Average Tenure

52yo

Average Age

Experienced Management: NOA3's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Edward Kozel
Independent Non-Executive Director2.8yrs€217.00k0.00085% 188.4k
Elizabeth Nelson
Independent Non-Executive Director7.8yrs€192.00k0.0013% 288.1k
Sari Baldauf
Independent Vice Chairman0.8yrs€160.00k0.0018% 387.8k
Risto Siilasmaa
Independent Chairman7.8yrs€440.00k0.024% 5.3m
Kari Stadigh
Independent Non-Executive Director8.8yrs€170.00k0.0049% 1.1m
Olivier Piou
Independent Director4.1yrs€196.00k0.0050% 1.1m
Jeanette Horan
Independent Non-Executive Director2.8yrs€195.00k0.00046% 101.9k
Soren Skou
Director0.8yrsno datano data
Bruce Brown
Independent Non-Executive Director7.8yrs€214.00k0.0023% 505.3k
Carla M. Smits-Nusteling
Independent Non-Executive Director3.7yrs€206.00k0.00073% 161.8k

3.9yrs

Average Tenure

61yo

Average Age

Experienced Board: NOA3's board of directors are considered experienced (3.9 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: NOA3
  • Exchange: XTRA
  • Founded: 1865
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: €22.161b
  • Shares outstanding: 5.62b
  • 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 Technologies. It provides hardware, software, and services for telecommunications operators, enterprises, and related markets/verticals, including public safety and Internet of Things (IoT). It also offers fixed networking solutions, such as copper based solutions; fiber technology solutions, including gigabit passive optical networks, Ethernet point-to-point, and 10 gigabit next generation fiber technologies; and fiber access products, solutions, and services. In addition, the company provides network infrastructure and implementation, care, and professional services comprising network planning and optimization, and systems integration services for mobile networks; and managed services for the fixed, mobile, applications, Internet protocol (IP), and optical domains. Further, it offers network planning and optimization services to enhance the network performance and quality, and analytics-based services. Additionally, the company provides IP/optical networking solutions, including IP routing and optical transport systems, software, and services; software solutions, such as customer experience management, network operations and management, communications and collaborations, policy and charging, as well as Cloud, IoT, security, and analytics platforms; and submarine networks and radio frequency systems. It has a collaboration agreement with CommScope Holding Company, Inc.; and a strategic collaboration with Microsoft. Nokia Corporation was founded in 1865 and is headquartered in Espoo, Finland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 21:31
End of Day Share Price2020/02/17 00:00
Earnings2019/12/31
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.