Nokia Oyj
Nokia Oyj Fundamental Analysis
Nokia Oyj (NOK) shows weak financial fundamentals with a PE ratio of 63.29, profit margin of 3.98%, and ROE of 3.91%. The company generates $19.3B in annual revenue with moderate year-over-year growth of 3.48%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NOK's fundamental strength across five key dimensions:
Efficiency Score
WeakNOK struggles to generate sufficient returns from assets.
Valuation Score
WeakNOK trades at a premium to fair value.
Growth Score
WeakNOK faces weak or negative growth trends.
Financial Health Score
ExcellentNOK maintains a strong and stable balance sheet.
Profitability Score
WeakNOK struggles to sustain strong margins.
Key Financial Metrics
Is NOK Expensive or Cheap?
P/E Ratio
NOK trades at 63.29 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, NOK's PEG of 3341156824881419.50 indicates potential overvaluation.
Price to Book
The market values Nokia Oyj at 2.38 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 22.51 times EBITDA. This signals the market has high growth expectations.
How Well Does NOK Make Money?
Net Profit Margin
For every $100 in sales, Nokia Oyj keeps $3.98 as profit after all expenses.
Operating Margin
Core operations generate 4.10 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.91 in profit for every $100 of shareholder equity.
ROA
Nokia Oyj generates $2.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nokia Oyj produces operating cash flow of $2.01B, showing steady but balanced cash generation.
Free Cash Flow
Nokia Oyj produces free cash flow of $1.41B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.26 in free cash annually.
FCF Yield
NOK converts 3.03% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
63.29
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3341156824881419.50
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.38
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.43
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.16
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.57
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.04
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How NOK Stacks Against Its Sector Peers
| Metric | NOK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 63.29 | 35.31 | Worse (Expensive) |
| ROE | 3.91% | 1063.00% | Weak |
| Net Margin | 3.98% | 5920926810.00% | Weak |
| Debt/Equity | 0.16 | 0.45 | Strong (Low Leverage) |
| Current Ratio | 1.57 | 4.97 | Neutral |
| ROA | 2.13% | -296056.00% (disorted) | Weak |
NOK outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nokia Oyj's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-5.74%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
126.92%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
22.01%
Industry Style: Growth, Innovation, High Beta
High Growth