Skip to Content
Morningstar
Get 14 Days Free

Nokia Oyj ADR NOK

Morningstar Rating
Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Nokia Expected to Raise 2021 Guidance in Q2 Announcement; Raising FVE to EUR 4.60

Mark Cash Senior Equity Analyst

Analyst Note

| Mark Cash |

No-moat Nokia announced that it expects to raise 2021 guidance after continued strength in the second quarter. The announcement did not include new targets but said that Nokia has executed good cost control in the first half of 2021 and that a few end markets have provided strength. However, we still expect headwinds in the second half of the year. With higher expectations for revenue and operating margin expansion, we are raising our fair value estimate to EUR 4.60 from EUR 4 (U.S. ADRs increase to $5.40 from $4.80) and view shares as fairly valued.

Read Full Analysis

Company Profile

Business Description

Nokia is a leading vendor in the telecommunications equipment industry. The company's network business derives revenue from selling wireless and fixed-line hardware, software, and services. Nokia's technology segment licenses its patent portfolio to handset manufacturers and makes royalties from Nokia-branded cellphones. The company, headquartered in Espoo, Finland, operates on a global scale, with most of its revenue from communication service providers.

Contact
Karakaari 7
Espoo, FI-02610, Finland
T +358 104488000
Sector Technology
Industry Communication Equipment
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type —
Employees 90,000

Related

Market Update
Q2 Top Stock Performers on Morningstar's Coverage List
Energy and tech stocks lead as the U.S. market rally continued
Jakir Hossain
Advisor Insights
Map: How Countries’ Stock Markets Stack Up on ESG Practices and Carbon Risk
The U.S. profile is impacted both by ESG leaders like Microsoft and Berkshire Hathaway and names like Facebook, Amazon.com, and Johnson & Johnson facing ESG risks.
Valerio Baselli
Investing Specialists
What's the Best Way to Start Investing?
Three arguments against getting started in investing with individual stocks.
Christine Benz
Our Picks
24 Stocks for 2030
We think these companies are well positioned to benefit from one of five key trends during the next decade.
Susan Dziubinski
US Videos
3 Tech Stocks for Dividend-Seekers
Brian Colello shares what makes these stocks stand out.
Brian Colello
Stock Strategist Industry Reports
What a Trade War Could Mean for Tech Stocks
At this point, it looks like more a blip than a roadblock.
Brian Colello
ETF Specialist
Market-Cap Weighting's Greatest Strength Is Also Its Greatest Weakness
What many perceive as bugs in cap-weighting are actually a feature.
Ben Johnson
Stock Analyst Update
Nokia's Rumored Offer for Juniper Is Rich
We find it hard to justify the 43% premium, given significant product overlap between the firms.
Ilya Kundozerov
Stock Strategist
Look Past Ericsson's Rough Near Term
Restructuring and industry headwinds have hurt results, but we still think the stock’s undervalued.
Ilya Kundozerov
Stock Strategist
Cisco's Narrow Moat Provides Competitive Firewall
We expect the firm to remain a strong competitor for many years to come.
Ilya Kundozerov
ETF Specialist
ESG + ETF = BFFs?
Investor demographics are slowly turning in favor of the pairing of impact-oriented strategies and the exchange-traded fund chassis, and investors' need for relevant analytics is growing as a result.
Ben Johnson
US Videos
Bhansali: Opportunities in Energy and Tech
Ariel's Rupal Bhansali highlights picks, including Nokia, chipmaker Dialog Semiconductor, and energy services firms Schlumberger and Core Laboratories.
Russel Kinnel
ETF Specialist
A Low-Tech Index Offering Exposure to the High-Tech Sector
The case for the tech-heavy, large and liquid PowerShares QQQ ETF remains a strong one.
Robert Goldsborough
Stock Strategist
Microsoft's (Mis)Adventures in Hardware
Strategic changes may allow for reduced direct investment in hardware.
Norman Young
US Videos
The Ones That Got Away
Morningstar's Matt Coffina looks back on some recent missed opportunities and what he learned from them--also, a couple of stocks he's glad he avoided.
Matthew Coffina
Stock Strategist
What Makes a Moat?
In an excerpt from their new book, Morningstar's Heather Brilliant and Elizabeth Collins explore how to identify a moat and how intangible assets can help a firm carve out a sustainable competitive advantage.
Heather Brilliant
US Videos
The Friday Five
This week: Financial-services firms post lukewarm earnings, two tech giants strike a deal, Time Warner turns down a foxy offer, and more.
Christine Benz
Commentary
Microsoft Layoffs Don't Change Our Valuation of the Stock
The majority of the layoffs stem from redundancies following the Nokia acquisition while Microsoft looks to streamline operations, but we expect additional details in the firm's fourth-quarter earnings call next week.
Norman Young
US Videos
Danoff, Davis, Lynch: Stock-Picking Ahead of the Crowd
The past Morningstar Manager of the Year winners favor credit card firms, split views on Facebook, address China's importance, extol executives' foresight for future growth and disruption, and much more in this panel presentation at the Morningstar Investment Conference.
Morningstar.com
US Videos
Low Turnover Creates High Marks for Dodge & Cox Stock
Long security-holding periods and high retention of in-house personnel have contributed to this Gold-rated fund's category-leading performance.
Laura Lallos

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.