company background image
NOKI

NokiaHLSE:NOKIA Stock Report

Market Cap

€27.9b

7D

-3.0%

1Y

43.1%

Updated

26 Oct, 2021

Data

Company Financials +
NOKIA fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance0/6
Financial Health5/6
Dividends0/6

NOKIA Overview

Nokia Corporation provides mobile and fixed network solutions worldwide.

Rewards

Trading at 24.4% below our estimate of its fair value

Earnings are forecast to grow 22.05% per year

Risk Analysis

No risks detected for NOKIA from our risk checks.

Nokia Competitors

Teleste

HLSE:TLT1V

€95.8m

Microsoft

NasdaqGS:MSFT

US$2.3t

Samsung Electronics

KOSE:A005930

₩477.9t

Oracle

NYSE:ORCL

US$265.1b

Price History & Performance

Summary of all time highs, changes and price drops for Nokia
Historical stock prices
Current Share Price€4.93
52 Week High€2.70
52 Week Low€5.38
Beta0.59
1 Month Change1.80%
3 Month Change-4.67%
1 Year Change43.12%
3 Year Change-1.33%
5 Year Change23.96%
Change since IPO605.05%

Recent News & Updates

Oct 06
There's Been No Shortage Of Growth Recently For Nokia's (HEL:NOKIA) Returns On Capital

There's Been No Shortage Of Growth Recently For Nokia's (HEL:NOKIA) Returns On Capital

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Firstly...

Sep 15
Is Nokia (HEL:NOKIA) A Risky Investment?

Is Nokia (HEL:NOKIA) A Risky Investment?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

NOKIAFI CommunicationsFI Market
7D-3.0%-5.3%0.4%
1Y43.1%11.4%24.5%

Return vs Industry: NOKIA exceeded the Finnish Communications industry which returned 11.6% over the past year.

Return vs Market: NOKIA exceeded the Finnish Market which returned 20.8% over the past year.

Price Volatility

Is NOKIA's price volatile compared to industry and market?
NOKIA volatility
NOKIA Beta0.59
Industry Beta0.69
Market Beta1

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

Volatility Over Time: NOKIA's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
186592,039Pekka Lundmarkhttps://www.nokia.com

Nokia Corporation provides mobile and fixed network solutions worldwide. The company operates through four segments: Mobile Networks, Network Infrastructure, Cloud and Network Services, and Nokia Technologies. It focuses on mobile radio including macro radio, small cells, and cloud native radio solutions for communications service providers and enterprises; and provides network planning and optimization, network implementation, and systems integration, as well as company-wide managed services.

Nokia Fundamentals Summary

How do Nokia's earnings and revenue compare to its market cap?
NOKIA fundamental statistics
Market Cap€27.86b
Earnings (TTM)-€1.88b
Revenue (TTM)€22.24b

1.3x

P/S Ratio

-14.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NOKIA income statement (TTM)
Revenue€22.24b
Cost of Revenue€13.27b
Gross Profit€8.97b
Expenses€10.86b
Earnings-€1.88b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 28, 2021

Earnings per share (EPS)-0.33
Gross Margin40.34%
Net Profit Margin-8.47%
Debt/Equity Ratio35.3%

How did NOKIA perform over the long term?

See historical performance and comparison

Valuation

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

25.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NOKIA (€4.98) is trading below our estimate of fair value (€6.59)

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


Price To Earnings Ratio

PE vs Industry: NOKIA is unprofitable, so we can't compare its PE Ratio to the European Communications industry average.

PE vs Market: NOKIA is unprofitable, so we can't compare its PE Ratio to the Finnish market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NOKIA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NOKIA is good value based on its PB Ratio (2x) compared to the XE Communications industry average (3.3x).


Future Growth

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

22.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NOKIA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: NOKIA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: NOKIA's is expected to become profitable in the next 3 years.

Revenue vs Market: NOKIA's revenue (2.5% per year) is forecast to grow slower than the Finnish market (3.8% per year).

High Growth Revenue: NOKIA's revenue (2.5% 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%).


Past Performance

How has Nokia performed over the past 5 years?

-4.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NOKIA is currently unprofitable.

Growing Profit Margin: NOKIA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NOKIA is unprofitable, and losses have increased over the past 5 years at a rate of 4.7% per year.

Accelerating Growth: Unable to compare NOKIA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NOKIA is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (39.9%).


Return on Equity

High ROE: NOKIA has a negative Return on Equity (-13.07%), as it is currently unprofitable.


Financial Health

How is Nokia's financial position?


Financial Position Analysis

Short Term Liabilities: NOKIA's short term assets (€18.2B) exceed its short term liabilities (€11.5B).

Long Term Liabilities: NOKIA's short term assets (€18.2B) exceed its long term liabilities (€10.8B).


Debt to Equity History and Analysis

Debt Level: NOKIA's debt to equity ratio (35.3%) is considered satisfactory.

Reducing Debt: NOKIA's debt to equity ratio has increased from 19.3% to 35.3% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable NOKIA has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: NOKIA is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 42.1% per year.


Dividend

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

2.23%

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 Finnish 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 Finnish market.


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Pekka Lundmark (58 yo)

1.17yrs

Tenure

€3,147,283

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 ($USD3.65M) is about average for companies of similar size in the Finnish market ($USD3.57M).

Compensation vs Earnings: Insufficient data to compare Pekka's compensation with company performance.


Leadership Team

Experienced Management: NOKIA's management team is not considered experienced ( 2 years average tenure), which suggests a new team.


Board Members

Experienced Board: NOKIA's board of directors are considered experienced (3.4 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 employee growth, exchange listings and data sources


Key Information

  • Name: Nokia Corporation
  • Ticker: NOKIA
  • Exchange: HLSE
  • Founded: 1865
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: €27.857b
  • Shares outstanding: 5.65b
  • Website: https://www.nokia.com

Number of Employees


Location

  • Nokia Corporation
  • 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 Analysis2021/10/26 21:11
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.