HLSE:NOKIA

Stock Analysis Report

Executive Summary

Nokia Corporation engages in the network and technology businesses worldwide.

Rewards

Trading at 41.7% below its fair value

Earnings are forecast to grow 60.92% per year

Risk Analysis

Dividend of 6.35% is not well covered by earnings

Highly volatile share price over past 3 months



Snowflake Analysis

Adequate balance sheet with reasonable growth potential.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.0%

NOKIA

1.1%

FI Communications

-1.0%

FI Market


1 Year Return

-33.7%

NOKIA

-6.9%

FI Communications

8.7%

FI Market

Return vs Industry: NOKIA underperformed the Finnish Communications industry which returned -6.9% over the past year.

Return vs Market: NOKIA underperformed the Finnish Market which returned 8.7% over the past year.


Shareholder returns

NOKIAIndustryMarket
7 Day-1.0%1.1%-1.0%
30 Day-2.5%0.9%-2.1%
90 Day-30.5%-6.2%2.0%
1 Year-32.3%-33.7%-5.4%-6.9%13.7%8.7%
3 Year-19.9%-26.6%22.4%14.1%27.4%12.1%
5 Year-43.2%-51.9%-15.6%-27.6%52.3%22.9%

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

Valuation

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

41.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NOKIA (€3.15) is trading below our estimate of fair value (€5.41)

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 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 (1.2x) compared to the XE Communications industry average (2x).


Next Steps

Future Growth

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

60.9%

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 (-0.1%).

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 (2.4% per year) is forecast to grow faster than the Finnish market (1.5% 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 (12.4%).


Next Steps

Past Performance

How has Nokia performed over the past 5 years?

-64.1%

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 -64.1% 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 (49.1%).


Return on Equity

High ROE: NOKIA has a negative Return on Equity (-2.38%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Nokia's financial position?


Financial Position Analysis

Short Term Liabilities: NOKIA's short term assets (€16.6B) exceed its short term liabilities (€12.4B).

Long Term Liabilities: NOKIA's short term assets (€16.6B) exceed its long term liabilities (€12.3B).


Debt to Equity History and Analysis

Debt Level: NOKIA's debt to equity ratio (31%) is considered satisfactory.

Reducing Debt: NOKIA's debt to equity ratio has reduced from 31.4% to 31% over the past 5 years.

Debt Coverage: NOKIA's debt is not well covered by operating cash flow (4.2%).

Interest Coverage: NOKIA is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

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

Debt Coverage by Assets: NOKIA's debt is covered by short term assets (assets are 3.7x debt).


Next Steps

Dividend

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

6.35%

Current Dividend Yield


Dividend Yield vs Market

company6.3%marketbottom25%2.2%markettop25%4.8%industryaverage3.2%forecastin3Years4.6%

Current dividend yield vs market & industry

Notable Dividend: NOKIA's dividend (6.35%) is higher than the bottom 25% of dividend payers in the Finnish market (2.23%).

High Dividend: NOKIA's dividend (6.35%) is in the top 25% of dividend payers in the Finnish market (4.85%)


Stability and Growth of Payments

Stable Dividend: NOKIA's dividend payments have been volatile in the past 10 years.

Growing Dividend: NOKIA's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: NOKIA is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: NOKIA's dividends in 3 years are forecast to be covered by earnings (54.6% payout ratio).


Next Steps

Management

What is the CEO of Nokia's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average management tenure


CEO

Rajeev Suri (52yo)

5.6yrs

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 ($USD0.00) is below average for companies of similar size in the Finnish market ($USD998.16K).

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


Management Age and Tenure

4.8yrs

Average Tenure

53yo

Average Age

Experienced Management: NOKIA's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

3.7yrs

Average Tenure

61yo

Average Age

Experienced Board: NOKIA's board of directors are considered experienced (3.7 years average tenure).


Insider Trading

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.


Management Team

  • Barry French (56yo)

    Chief Marketing Officer

    • Tenure: 5.9yrs
  • Sergei Khraby

    Head of Belarussian office

    • Tenure: 13.5yrs
  • Joerg Erlemeier (54yo)

    Chief Operating Officer

    • Tenure: 2yrs
  • Rajeev Suri (52yo)

    President & CEO

    • Tenure: 5.6yrs
    • Compensation: €7.60m
  • Hans-Jürgen Bill (59yo)

    Chief Human Resources Officer

    • Tenure: 3.9yrs
  • Kristian Pullola (46yo)

    Chief Financial Officer

    • Tenure: 2.9yrs
  • Susan Sheehan

    Senior Vice President of Communications

    • Tenure: 7.5yrs
  • Marcus Weldon (51yo)

    Corporate CTO & President of Nokia Bell Labs

    • Tenure: 0yrs
  • Matt Shimao

    Head of Investor Relations

    • Tenure: 0yrs
  • Nassib Abou-Khalil

    Chief Legal Officer for Nokia

    • Tenure: 0.3yrs

Board Members

  • Ed Kozel (64yo)

    Independent Non-Executive Director

    • Tenure: 2.6yrs
    • Compensation: €217.00k
  • Betsey Nelson (59yo)

    Independent Non-Executive Director

    • Tenure: 7.6yrs
    • Compensation: €192.00k
  • Sari Baldauf (64yo)

    Independent Vice Chairman

    • Tenure: 0.6yrs
    • Compensation: €160.00k
  • Risto Siilasmaa (53yo)

    Chair of the Board

    • Tenure: 7.6yrs
    • Compensation: €440.00k
  • Kari Stadigh (64yo)

    Independent Non-Executive Director

    • Tenure: 8.6yrs
    • Compensation: €170.00k
  • Olivier Piou (61yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: €196.00k
  • Jeanette Horan (64yo)

    Independent Non-Executive Director

    • Tenure: 2.6yrs
    • Compensation: €195.00k
  • Soren Skou (55yo)

    Director

    • Tenure: 0.6yrs
  • Bruce Brown (61yo)

    Independent Non-Executive Director

    • Tenure: 7.6yrs
    • Compensation: €214.00k
  • Carla Smits-Nusteling (53yo)

    Independent Non-Executive Director

    • Tenure: 3.5yrs
    • Compensation: €206.00k

Company Information

Nokia Corporation's company bio, 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: €17.893b
  • 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
0HAFLSE (London Stock Exchange)YesCommon StockGBEURJan 1992
NOKIWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1992
NOA3DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992
NOKIAENXTPA (Euronext Paris)YesCommon StockFREURJan 1992
NOKIASWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1992
NOKIAHLSE (OMX Nordic Exchange Helsinki)YesCommon StockFIEURJan 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
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 Analysis2019/12/05 20:34
End of Day Share Price2019/12/05 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.