Nokia (NOK) AI Stock Analysis

• Market Cap: $34.17B
• Dividend Yield: 2.51%
• Average Volume (3M): 42.86M
• Price to Earnings (P/E): 35.5
• Beta (1Y): 0.34
• Revenue Growth: 5.05%
• EPS Growth: 115.92%
• Country: US
• Employees: 78,434
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.07
• Shares Outstanding: 5,575,850,600
• 10 Day Avg. Volume: 55,573,286
• 30 Day Avg. Volume: 42,859,328
• PEG Ratio: 0.20
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 1.22
• P/FCF Ratio: 11.57
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 1.79
• Enterprise Value/Gross Profit: 4.15
• Enterprise Value/Ebitda: 18.91
• 1Y Price Target: $6.30
• Price Target Upside: 0.00%
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 69 Neutral
• Price Target: $6.50 ▲(3.17% Upside)

Nokia's overall stock score reflects strong financial stability and bullish technical momentum, offset by a high valuation. The company's robust cash flow and strategic growth in AI and cloud services are significant strengths, while the high P/E ratio and overbought technical indicators present potential risks.

Nokia Business Overview & Revenue Model

Company Description

Nokia 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 Money

Nokia generates revenue primarily through the sale of network equipment and services to telecom operators, enterprises, and public sector organizations. The Nokia Networks division is a key revenue driver, offering a range of products such as base stations, routers, and software for network management and optimization. Additionally, Nokia Technologies contributes significantly through licensing agreements, where the company monetizes its vast intellectual property portfolio by allowing other companies to use its patented technologies. Key partnerships with major telecom operators and technology companies further bolster Nokia's revenue, particularly in the deployment of 5G networks and the Internet of Things (IoT) solutions. The company's focus on innovation and investment in R&D also plays a crucial role in maintaining competitive advantages and driving future earnings.

Nokia Financial Statement Overview

Summary

Nokia's financial performance is characterized by strong cash flow and a stable balance sheet, despite revenue volatility. The company has improved profitability margins and effective cost management, demonstrating financial resilience through robust cash generation 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.77B	19.22B	21.14B	24.91B	22.20B	21.87B
Gross Profit	5.93B	8.86B	8.69B	10.22B	8.83B	8.21B
EBITDA	1.30B	3.43B	2.87B	3.55B	2.68B	1.93B
Net Income	354.00M	1.28B	665.00M	4.25B	1.62B	-2.52B
Balance Sheet
Total Assets	36.04B	39.15B	39.86B	42.94B	40.05B	36.28B
Cash, Cash Equivalents and Short-Term Investments	5.67B	8.91B	8.24B	9.16B	9.60B	8.28B
Total Debt	4.07B	4.75B	5.19B	5.52B	5.66B	6.49B
Total Liabilities	16.37B	18.40B	19.23B	21.52B	22.59B	23.65B
Stockholders Equity	19.58B	20.66B	20.54B	21.33B	17.36B	12.46B
Cash Flow
Free Cash Flow	1.24B	2.02B	665.00M	873.00M	2.07B	1.28B
Operating Cash Flow	1.70B	2.49B	1.32B	1.47B	2.63B	1.76B
Investing Cash Flow	-1.07B	-117.00M	1.04B	-1.88B	-1.79B	-1.52B
Financing Cash Flow	-2.12B	-2.00B	-1.50B	-837.00M	-1.21B	883.00M

Nokia Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NOK, the sentiment is Positive. The current price of 6.3 is above the 20-day moving average (MA) of 5.34, above the 50-day MA of 4.83, and above the 200-day MA of 4.87, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 83.33 is Negative, neither overbought nor oversold. The STOCH value of 83.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NOK.

Nokia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSCO	79 Outperform	$279.21B	27.74	22.65%	2.31%	5.30%	3.07%
ERIC	74 Outperform	$31.87B	12.72	25.45%	3.11%	1.04%	―
MSI	72 Outperform	$73.14B	35.33	152.71%	0.99%	6.45%	44.24%
UI	71 Outperform	$44.50B	62.55	186.53%	0.35%	33.45%	103.34%
NOK	69 Neutral	$34.17B	35.45	4.03%	2.51%	5.05%	115.92%
HPE	69 Neutral	$31.01B	29.68	5.37%	2.21%	14.39%	-38.96%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Nokia Corporate Events

Nokia’s Earnings Call: Growth Amidst Margin Challenges

Nokia’s recent earnings call presented a balanced mix of optimism and caution. The company showcased robust sales growth across its various business segments, particularly highlighting advancements in the AI and cloud customer segment and the successful integration of Infinera. However, the call also underscored challenges, such as declining margins and the necessity for ongoing cost control measures.

Nokia Reports Mixed Q2 2025 Earnings Amid Currency Challenges

Nokia, a global leader in telecommunications and networking solutions, operates across various sectors including mobile networks, network infrastructure, cloud services, and technology licensing. In its latest earnings report for Q2 2025, Nokia reported a mixed performance with a slight decline in comparable net sales by 1% on a constant currency basis, although reported net sales increased by 2%. The company’s Network Infrastructure and Cloud and Network Services segments showed growth, while Mobile Networks experienced a decline. Despite stable gross margins, operating margins were impacted by currency fluctuations and tariffs. Nokia’s Q2 2025 results highlighted a free cash flow of EUR 0.1 billion and a net cash balance of EUR 2.9 billion, with a revised full-year operating profit outlook due to external economic pressures. Looking forward, Nokia anticipates stronger performance in the latter half of the year, particularly in Q4, with expected growth in Network Infrastructure and Cloud and Network Services, while maintaining stable sales in Mobile Networks. The company remains focused on leveraging its technological capabilities and strategic initiatives to navigate the challenges posed by currency fluctuations and tariffs.

Nokia’s Earnings Call: Growth Amid Challenges

Nokia’s recent earnings call painted a picture of mixed sentiments, highlighting robust growth in Network Infrastructure and Cloud and Network Services, while also acknowledging challenges in Mobile Networks and the impact of currency fluctuations. The company has revised its outlook due to these external factors, indicating a cautious yet optimistic approach moving forward.