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NOKI

Nokia Oyj HLSE:NOKIA Stock Report

Last Price

€4.44

Market Cap

€25.0b

7D

-0.2%

1Y

-2.5%

Updated

30 Jun, 2022

Data

Company Financials +
NOKIA fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance3/6
Financial Health5/6
Dividends0/6

NOKIA Stock Overview

Nokia Oyj provides mobile, fixed, and cloud network solutions worldwide.

Rewards

Trading at 9.4% below our estimate of its fair value

Earnings are forecast to grow 10.66% per year

Became profitable this year

Risk Analysis

No risks detected for NOKIA from our risk checks.

Nokia Oyj Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Nokia Oyj
Historical stock prices
Current Share Price€4.44
52 Week High€5.77
52 Week Low€4.12
Beta0.57
1 Month Change-5.16%
3 Month Change-12.00%
1 Year Change-2.53%
3 Year Change-1.28%
5 Year Change-18.09%
Change since IPO534.45%

Recent News & Updates

Shareholder Returns

NOKIAFI CommunicationsFI Market
7D-0.2%-0.9%0.6%
1Y-2.5%-16.4%-19.7%

Return vs Industry: NOKIA exceeded the Finnish Communications industry which returned -13.5% over the past year.

Return vs Market: NOKIA exceeded the Finnish Market which returned -17.7% over the past year.

Price Volatility

Is NOKIA's price volatile compared to industry and market?
NOKIA volatility
NOKIA Average Weekly Movement4.0%
Communications Industry Average Movement5.7%
Market Average Movement5.3%
10% most volatile stocks in FI Market8.4%
10% least volatile stocks in FI Market3.4%

Stable Share Price: NOKIA is less volatile than 75% of Finnish stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: NOKIA's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
186587,927Pekka Lundmarkhttps://www.nokia.com

Nokia Oyj provides mobile, fixed, and cloud network solutions worldwide. The company operates through four segments: Mobile Networks, Network Infrastructure, Cloud and Network Services, and Nokia Technologies. It offers products and services for radio access networks covering technologies from 2G to 5G, and microwave radio links for transport networks.

Nokia Oyj Fundamentals Summary

How do Nokia Oyj's earnings and revenue compare to its market cap?
NOKIA fundamental statistics
Market Cap€24.98b
Earnings (TTM)€1.53b
Revenue (TTM)€22.47b

16.3x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NOKIA income statement (TTM)
Revenue€22.47b
Cost of Revenue€13.36b
Gross Profit€9.11b
Other Expenses€7.58b
Earnings€1.53b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 21, 2022

Earnings per share (EPS)0.27
Gross Margin40.54%
Net Profit Margin6.82%
Debt/Equity Ratio25.5%

How did NOKIA perform over the long term?

See historical performance and comparison

Dividends

0.4%

Current Dividend Yield

7%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is NOKIA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NOKIA?

Other financial metrics that can be useful for relative valuation.

NOKIA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.9x
Enterprise Value/EBITDA7.3x
PEG Ratio1.5x

Price to Earnings Ratio vs Peers

How does NOKIA's PE Ratio compare to its peers?

NOKIA PE Ratio vs Peers
The above table shows the PE ratio for NOKIA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average22.6x
TLT1V Teleste
20x36.2%€69.3m
ERIC B Telefonaktiebolaget LM Ericsson
11.3x7.2%kr255.7b
MSI Motorola Solutions
27.7x10.4%US$35.1b
ANET Arista Networks
31x11.1%US$28.9b
NOKIA Nokia Oyj
16.3x10.7%€25.0b

Price-To-Earnings vs Peers: NOKIA is good value based on its Price-To-Earnings Ratio (16.3x) compared to the peer average (22.6x).


Price to Earnings Ratio vs Industry

How does NOKIA's PE Ratio compare vs other companies in the European Communications Industry?

Price-To-Earnings vs Industry: NOKIA is good value based on its Price-To-Earnings Ratio (16.3x) compared to the European Communications industry average (21.9x)


Price to Earnings Ratio vs Fair Ratio

What is NOKIA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NOKIA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio16.3x
Fair PE Ratio31.2x

Price-To-Earnings vs Fair Ratio: NOKIA is good value based on its Price-To-Earnings Ratio (16.3x) compared to the estimated Fair Price-To-Earnings Ratio (31.2x).


Share Price vs Fair Value

What is the Fair Price of NOKIA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NOKIA (€4.44) is trading below our estimate of fair value (€4.9)

Significantly Below Fair Value: NOKIA is trading below fair value, but not by a significant amount.


Price to Earnings Growth Ratio

PEG Ratio: NOKIA is poor value based on its PEG Ratio (1.5x)


Discover undervalued companies

Future Growth

How is Nokia Oyj forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


10.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NOKIA's forecast earnings growth (10.7% per year) is above the savings rate (0.2%).

Earnings vs Market: NOKIA's earnings (10.7% per year) are forecast to grow faster than the Finnish market (8% per year).

High Growth Earnings: NOKIA's earnings are forecast to grow, but not significantly.

Revenue vs Market: NOKIA's revenue (2.4% per year) is forecast to grow faster than the Finnish market (1.7% per year).

High Growth Revenue: NOKIA's revenue (2.4% 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 (12.6%).


Discover growth companies

Past Performance

How has Nokia Oyj performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


14.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NOKIA has high quality earnings.

Growing Profit Margin: NOKIA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: NOKIA has become profitable over the past 5 years, growing earnings by 14% per year.

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 (69.1%).


Return on Equity

High ROE: NOKIA's Return on Equity (8.6%) is considered low.


Discover strong past performing companies

Financial Health

How is Nokia Oyj's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: NOKIA's short term assets (€19.5B) exceed its short term liabilities (€12.4B).

Long Term Liabilities: NOKIA's short term assets (€19.5B) exceed its long term liabilities (€10.1B).


Debt to Equity History and Analysis

Debt Level: NOKIA has more cash than its total debt.

Reducing Debt: NOKIA's debt to equity ratio has increased from 21.8% to 25.5% over the past 5 years.

Debt Coverage: NOKIA's debt is well covered by operating cash flow (40.7%).

Interest Coverage: NOKIA's interest payments on its debt are well covered by EBIT (11.5x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.45%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: NOKIA's dividend (0.45%) isn’t notable compared to the bottom 25% of dividend payers in the Finnish market (2.51%).

High Dividend: NOKIA's dividend (0.45%) is low compared to the top 25% of dividend payers in the Finnish market (4.99%).


Stability and Growth of Payments

Stable Dividend: NOKIA is not paying a notable dividend for the Finnish market, therefore no need to check if payments are stable.

Growing Dividend: NOKIA is not paying a notable dividend for the Finnish market, therefore no need to check if payments are increasing.


Earnings Payout to Shareholders

Earnings Coverage: NOKIA is not paying a notable dividend for the Finnish market.


Cash Payout to Shareholders

Cash Flow Coverage: NOKIA is not paying a notable dividend for the Finnish market.


Discover strong dividend paying companies

Management

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

2.6yrs

Average management tenure


CEO

Pekka Lundmark (58 yo)

1.83yrs

Tenure

€9,129,159

Compensation

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...


CEO Compensation Analysis

Compensation vs Market: Pekka's total compensation ($USD9.54M) is above average for companies of similar size in the Finnish market ($USD4.18M).

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


Leadership Team

Experienced Management: NOKIA's management team is considered experienced (2.6 years average tenure).


Board Members

Experienced Board: NOKIA's board of directors are considered experienced (3.6 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 Oyj's employee growth, exchange listings and data sources


Key Information

  • Name: Nokia Oyj
  • Ticker: NOKIA
  • Exchange: HLSE
  • Founded: 1865
  • Industry: Communications Equipment
  • Sector: Tech
  • Implied Market Cap: €24.979b
  • Shares outstanding: 5.63b
  • Website: https://www.nokia.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/30 00:00
End of Day Share Price2022/06/30 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.