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Nokia (NOK)
:NOK
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Nokia
(NYSE:NOK)
75Outperform
Nokia (NOK) vs. S&P 500 (SPY)
Market Cap
$24.49B
Dividend Yield2.17%
Average Volume (3M)24.61M
Price to Earnings (P/E)20.0
Beta (1Y)0.55
Revenue Growth-12.68%
EPS Growth90.73%
CountryUS
Employees78,434
SectorTechnology
Sector Strength40
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.25
Shares Outstanding5,605,850,600
10 Day Avg. Volume23,278,808
30 Day Avg. Volume24,605,174
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)N/A
Price to Sales (P/S)1.23
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.48Price Target Upside11.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Nokia Business Overview & Revenue Model
Company DescriptionNokia Oyj provides mobile, fixed, and cloud network solutions worldwide. The company operates through four segments: Mobile Networks, Network Infrastructure, Cloud and Network Services, and Nokia Technologies. It offers products and services for radio access networks covering technologies from 2G to 5G, and microwave radio links for transport networks. The company provides fixed networking solutions, such as fiber and copper-based access infrastructure, and cloud and virtualization services, as well as wi-fi portfolio, including mesh solutions and cloud-based controllers; IP routing solutions for IP aggregation, and edge and core applications for residential, business, mobile, and industrial services; a portfolio of optical networks comprising portfolio coherent optical transponders, optical transport network switchers, wavelength-division multiplexers, reconfigurable optical add-drop multiplexer solutions, and optical line systems for metro access and aggregation, data center interconnect, regional, and long-haul/ultra-long-haul applications; and submarine networks. In addition, it offers business applications software, cloud and cognitive services, core networks software, and enterprise solutions. Further, the company provides hardware, software, and services, as well as licensing of intellectual property, including patents, technologies, and the Nokia brand. It serves communications service providers, webscales, hyperscalers, digital industries, and government. Nokia Oyj was founded in 1865 and is headquartered in Espoo, Finland.
How the Company Makes MoneyNokia generates revenue through several key streams. A significant portion of its income comes from its Networks business, which involves selling equipment and services for wireless and fixed-line networks. This includes 4G and 5G infrastructure, IP routing, optical networks, and software solutions. The company's Technologies segment earns money by licensing its extensive portfolio of patents and technologies to other companies, particularly in the mobile device and consumer electronics sectors. Moreover, Nokia has strategic partnerships with various technology and telecommunications companies to enhance its service offerings and expand its market reach. These partnerships, along with continuous investments in research and development, help Nokia maintain its competitive edge and drive revenue growth.
Nokia Financial Statement Overview
Summary
Nokia's financial performance shows strength in cash flow and balance sheet, with stable gross profit margins. Despite revenue volatility, profitability margins have improved, showing efficient cost management and reduced leverage.Income Statement
Nokia's revenue has shown volatility, with a notable drop from 2022 to 2024. However, gross profit margins remain relatively stable, indicating consistent cost management. The net profit margin improved significantly from 2023 to 2024, reflecting better profitability despite lower revenues. The EBIT and EBITDA margins are satisfactory, indicating operational efficiency.65
Positive
Balance Sheet
The balance sheet illustrates a strong equity position with an equity ratio of around 52.8% in 2024. The debt-to-equity ratio has improved, showing reduced leverage. Return on equity has increased, reflecting improved profitability relative to shareholder investments. Overall, the balance sheet reflects financial stability and effective debt management.70
Positive
Cash Flow
Operating cash flow has significantly improved in 2024, showcasing robust cash generation capabilities. Free cash flow has grown impressively, indicating effective capital expenditure management. The operating cash flow to net income ratio is strong, suggesting efficient conversion of income into cash.75
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 19.82B | 19.22B | 22.26B | 24.91B | 22.20B | 21.87B | Gross Profit |
| 8.45B | 8.86B | 8.69B | 10.22B | 8.83B | 8.21B | EBIT |
| 1.83B | 2.00B | 1.66B | 2.32B | 2.16B | 918.00M | EBITDA |
| 2.73B | 3.43B | 2.94B | 3.55B | 3.23B | 2.05B | Net Income Common Stockholders |
| 378.00M | 1.28B | 665.00M | 4.25B | 1.62B | -2.42B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 9.80B | 8.91B | 8.24B | 9.16B | 9.60B | 8.28B | Total Assets |
| 36.49B | 39.15B | 39.86B | 42.94B | 40.05B | 36.28B | Total Debt |
| 5.14B | 4.75B | 5.19B | 5.52B | 5.66B | 6.49B | Net Debt |
| 3.59B | -1.87B | -1.05B | 52.00M | -1.03B | -454.00M | Total Liabilities |
| 20.58B | 18.40B | 19.23B | 21.52B | 22.59B | 23.65B | Stockholders Equity |
| 13.97B | 20.66B | 20.54B | 21.33B | 17.36B | 12.56B |
| Cash Flow | Free Cash Flow | ||||
| 2.62B | 2.02B | 665.00M | 873.00M | 2.07B | 1.28B | Operating Cash Flow |
| 3.12B | 2.49B | 1.32B | 1.47B | 2.63B | 1.76B | Investing Cash Flow |
| 383.00M | -117.00M | 1.04B | -1.88B | -1.79B | -1.52B | Financing Cash Flow |
| -1.72B | -2.00B | -1.50B | -837.00M | -1.21B | 883.00M |
Nokia Technical Analysis
Neutral
4.93
Price Trends
5.02
Negative
4.71
Positive
4.43
Positive
Market Momentum
0.09
Positive
61.59
Neutral
41.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NOK, the sentiment is Neutral. The current price of 4.93 is below the 20-day moving average (MA) of 5.18, below the 50-day MA of 5.02, and above the 200-day MA of 4.43, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 61.59 is Neutral, neither overbought nor oversold. The STOCH value of 41.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NOK.
Nokia Risk Analysis
Nokia disclosed 37 risk factors in its most recent earnings report. Nokia reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nokia Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $24.49B | 20.00 | 8.27% | 2.17% | -12.68% | 90.73% | |
73 Outperform | $69.62B | 45.18 | 129.87% | 1.05% | 8.41% | -7.83% | |
73 Outperform | $22.64B | 12,050.00 | 0.15% | 2.55% | -5.59% | ― | |
67 Neutral | $19.05B | 7.17 | 12.09% | 4.16% | 10.93% | 43.19% | |
66 Neutral | $8.81B | 114.84 | 2.76% | ― | -7.29% | -64.31% | |
60 Neutral | $11.38B | 39.68 | 6.21% | 2.59% | -8.82% | -10.01% | |
57 Neutral | $20.31B | 10.03 | -14.49% | 2.79% | 5.15% | -23.76% |
* Technology Sector Average
Performance Comparison
NOK
Nokia
4.93
1.59
47.60%
CIEN
Ciena
61.99
14.89
31.61%
JNPR
Juniper Networks
35.15
-0.90
-2.50%
ERIC
Telefonaktiebolaget LM Ericsson
7.23
2.31
46.95%
MSI
Motorola Solutions
417.19
71.85
20.81%
HPE
Hewlett Packard Enterprise
14.50
-2.95
-16.91%
Nokia Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: 11.54% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a strong finish to 2024 with impressive growth in Network Infrastructure and Nokia Technologies. However, challenges remain in the mobile networks and enterprise segments, with competition impacting performance in specific regions.Highlights
Strong Q4 Financial Performance
Nokia reported a 9% growth in net sales in the fourth quarter, with a gross margin of 47.2% and an operating margin of 19.1%, the highest since 2015.
Network Infrastructure Growth
Network Infrastructure grew 17% in Q4, with IP networks as the standout performer at 24% growth.
Cash Generation and Shareholder Returns
Nokia generated a free cash flow of EUR 2 billion in 2024, ending the year with a net cash balance of EUR 4.9 billion after returning EUR 1.4 billion to shareholders.
Nokia Technologies Expansion
Nokia Technologies saw an 85% net sales growth in Q4, driven by new deals with companies like HP and Samsung.
Data Center Investment
Nokia plans to invest an additional EUR 100 million in its IP networks business to generate EUR 1 billion in incremental net sales by 2028.
Lowlights
Mobile Networks Challenges
Net sales in mobile networks declined by 2% in Q4, with a decrease in operating margin by 380 basis points to 7.7%.
Enterprise Sales Decline
Enterprise sales declined by 4% in constant currency terms in 2024, reflecting broader weakness in enterprise demand.
Competitive Environment
The competitive environment remains challenging, particularly in Latin America and with increased competition from Chinese vendors.
Company Guidance
During Nokia's Fourth Quarter 2024 Results Call, the company provided guidance indicating strong performance and positive outlooks for 2025. In Q4, Nokia reported a 9% growth in net sales, driven by a 17% increase in network infrastructure and a standout 24% growth in IP networks. The company achieved its highest operating margin since 2015 at 19.1% and generated EUR2 billion in free cash flow, ending the year with a net cash balance of EUR4.9 billion. For 2025, Nokia expects strong growth in network infrastructure and cloud and network services, with stable sales in mobile networks despite a 4% headwind from AT&T. The company plans to accelerate investments in its IP networks business, aiming to generate EUR1 billion in additional net sales by 2028. Operating profit for 2025 is forecasted between EUR1.9 billion and EUR2.4 billion, excluding the Infinera acquisition, with a free cash flow conversion rate of 50% to 80%.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.