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Nokia Oyj ADR NOK

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Stock XNYS Rating as of
$3.84 +0.01 (0.26%)
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As of Delayed Price Closed
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Company Report

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Nokia Earnings: Trends Are Improving, but Sales Remain Very Weak

Matthew Dolgin

Nokia's second-quarter revenue was very disappointing, as the rate of decline improved only slightly. Recovering industry trends were much more pronounced in peer Ericsson's second quarter. Although we believe Ericsson has a near-term edge in mobile networks, Nokia has a more diverse business that will also benefit from a recovery in telecom carrier spending. We expect Nokia's other segments to contribute to a significant improvement in financial performance after 2024. Combined with what we believe are smart recent capital allocation decisions with the Infinera acquisition and an accelerated share buyback, we believe shares remain undervalued. We are maintaining our EUR 5.50 fair value estimate.

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Price vs Fair Value

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NOK is trading at a 329% premium.
Price
$3.84
Fair Value
$2.00
Uncertainty
Medium
1-Star Price
$8.30
5-Star Price
$8.20
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

The capabilities of 5G will bring a new market of customers and a longer and more expansive cycle of network spending as enterprises deploy private networks and use Internet of Things functions.

Bears

Nokia’s customer base is concentrated among sophisticated communications service providers and equipment manufacturers, which yield significant buying power, limiting the company's pricing power.

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News

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Trading Information

Previous Close Price
$3.83
Day Range
$3.79–3.85
52-Week Range
$2.94–4.09
Bid/Ask
$3.80 / $3.82
Market Cap
$21.09 Bil
Volume/Avg
9.6 Mil / 12.8 Mil

Key Statistics

Price/Earnings (Normalized)
11.83
Price/Sales
1.01
Dividend Yield (Trailing)
3.66%
Dividend Yield (Forward)
3.66%
Total Yield
4.86%

Company Profile

Nokia provides telecom equipment and services that are used to build wireless and fixed-line networks. It operates in four segments. The mobile networks segment, which sells equipment and services to telecom carriers to power public wireless networks, is the largest, followed closely by network infrastructure. Network infrastructure focuses on fixed networks, including infrastructure, solutions, and components for IP networks, optical networks, and submarine networks. Cloud and network services is a nascent segment catering to enterprises with as-a-service platforms. Nokia also has a sizable research division and patent business, where it licenses technology used by handset providers, consumer electronics firms, and other firms making electronic and Internet of Things products.
Sector
Technology
Industry
Communication Equipment
Stock Style Box
Large Value
Total Number of Employees
86,700
Website
https://www.nokia.com

Competitors

Valuation

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Metric
NOK
CSCO
Price/Earnings (Normalized)
 11.8311.97
Price/Book Value
 0.944.22
Price/Sales
 1.013.52
Price/Cash Flow
 7.7511.92
Price/Earnings
NOK
CSCO

Financial Strength

Metric
NOK
CSCO
Quick Ratio
 1.370.68
Current Ratio
 1.680.89
Interest Coverage
 —19.46
Quick Ratio
NOK
CSCO

Profitability

Metric
NOK
CSCO
Return on Assets (Normalized)
 1.95%15.60%
Return on Equity (Normalized)
 3.71%36.40%
Return on Invested Capital (Normalized)
 2.35%26.89%
Return on Assets
NOK
CSCO
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Communication Equipment Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Cisco Systems Inc
CSCO
RgpmnpylKyrk$192.9 Bil
 Motorola Solutions Inc
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QjkcpskcTdd$65.7 Bil
 Hewlett Packard Enterprise Co
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HgktmyfhYdhx$25.7 Bil
 Telefonaktiebolaget L M Ericsson Class B
ERIXF
VLTHxwm$22.1 Bil
 Telefonaktiebolaget L M Ericsson ADR
ERIC
ZmmlfhgrnXzky$22.1 Bil
 Nokia Oyj
NOKBF
—Rrrh$21.1 Bil
 Zebra Technologies Corp Class A
ZBRA
MbtwsrkCntzhg$16.8 Bil
 ZTE Corp Class H
ZTCOF
—Trfq$16.7 Bil
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