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Nokia (NOK)
NYSE:NOK
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Nokia
(NYSE:NOK)
Rating:64Neutral
Price Target:
$5.50
▲(15.79%Upside)
Nokia (NOK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.70B
Dividend Yield4.32%
Average Volume (3M)16.23M
Price to Earnings (P/E)31.9
Beta (1Y)0.41
Revenue Growth-9.96%
EPS Growth-6.83%
CountryUS
Employees78,434
SectorTechnology
Sector Strength95
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.03
Shares Outstanding5,455,850,600
10 Day Avg. Volume19,283,074
30 Day Avg. Volume16,233,814
Financial Highlights & Ratios
PEG Ratio-0.73
Price to Book (P/B)1.07
Price to Sales (P/S)0.00
P/FCF Ratio12.43
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.50Price Target Upside36.84% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Nokia Business Overview & Revenue Model
Company DescriptionNokia Corporation is a Finnish multinational telecommunications, information technology, and consumer electronics company. It primarily operates in the sectors of network infrastructure, technology services, and licensing. Nokia's core products and services include mobile networks, fixed networks, and cloud services, as well as advanced technologies such as 5G solutions. The company also engages in patent licensing and brand licensing, leveraging its extensive portfolio of intellectual property.
How the Company Makes MoneyNokia makes money through several key revenue streams. The largest source of revenue is its Networks business, which includes providing telecommunications infrastructure and services to mobile network operators and enterprises around the world. This segment offers products and services related to mobile networks, fixed networks, and IP/optical networks, with a strong focus on 5G technology. Additionally, Nokia Technologies generates revenue through the licensing of its vast portfolio of patents and intellectual property, including brand and technology licensing. Strategic partnerships with key technology and telecommunications companies also contribute to its earnings, allowing Nokia to expand its market reach and innovate within the industry.
Nokia Key Performance Indicators (KPIs)
Any
Gross Profit by Segment
Shows profit after direct costs for each business unit, revealing efficiency and pricing power across different segments.
Shows profit after direct costs for each business unit, revealing efficiency and pricing power across different segments.
Data provided by:
Main Street Data
Main Street DataNokia Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: -9.87%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with strong growth in network infrastructure and cloud services, positive cash flow, and strategic progress with the Infinera acquisition. However, the decline in net sales, significant one-off charges, tariff impacts, and challenges in achieving profit targets offset these gains.Q1-2025 Updates
Positive Updates
Strong Growth in Network Infrastructure
Network infrastructure segment showed 11% growth, with optical networks growing 15%, fixed networks 9%, and IP networks 7%.
Cloud and Network Services Expansion
Cloud and Network Services grew 8% with strong demand for 5G core, securing significant wins at AT&T, Boost Mobile, Ooredoo Qatar, and Telefonica.
Positive Free Cash Flow
Generated over EUR 700 million of free cash flow in the quarter, ending with a net cash position of EUR 3 billion.
Infinera Acquisition Value
Infinera acquisition is expected to accelerate product roadmaps and increase access to hyperscale customers, with strong order growth in optical networks.
T-Mobile RAN Agreement Extension
Announced an extension of the RAN agreement with T-Mobile U.S., indicating strong partnership and potential for future growth.
Negative Updates
Decline in Net Sales
Net sales declined 3% year-over-year, largely due to a challenging comparison in Nokia Technologies, which declined 52%.
Impact of One-Off Charges
Operating margin in mobile networks was negatively impacted by a EUR 120 million one-off contract settlement charge.
Tariff Impact on Operating Profit
Potential tariffs could have a EUR 20 million to EUR 30 million impact on operating profit in Q2, with no assumption made for the second half of 2025.
Lower Gross Margin
Gross margin decreased by 820 basis points to 42.3%, mainly due to lower Nokia Technologies net sales and one-off charges.
Challenges in Achieving Profit Targets
Given unexpected charges, it will be more challenging to achieve the top end of the operating profit range for 2025.
Company Guidance
In the recent Nokia First Quarter 2025 Results Call, several key metrics were discussed, highlighting both challenges and successes. Nokia's net sales declined by 3% year-over-year, but when adjusted for over EUR 400 million of catch-up net sales in Nokia Technologies, they actually grew by 7%. Network infrastructure saw an 11% growth, with optical networks particularly strong at 15%. Cloud and Network Services grew 8% due to high demand for 5G core. Despite a contraction in net sales, Mobile Networks showed stabilization with a 2% increase. Operating margins saw varied performance across segments, with network infrastructure expanding by 190 basis points and cloud and network services seeing a substantial increase of 930 basis points. Free cash flow was robust at over EUR 700 million, ending the quarter with a net cash position of EUR 3 billion. However, profitability was impacted by a EUR 120 million contract settlement in Mobile Networks. Looking forward, Nokia expects tariffs to potentially impact operating profit by EUR 20 million to EUR 30 million in Q2, with proactive measures being taken to mitigate exposure. The guidance remains unchanged, although achieving the top end of the operating profit range is now seen as more challenging due to unexpected charges.Nokia Financial Statement Overview
Summary
Nokia shows financial resilience with strong cash flow and improved profitability margins, despite revenue volatility. The balance sheet reflects financial stability through reduced leverage and robust equity.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 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 19.22B | 22.26B | 24.91B | 22.20B | 21.87B |
| Gross Profit | 8.86B | 8.69B | 10.22B | 8.83B | 8.21B |
| EBITDA | 3.43B | 2.94B | 3.55B | 3.23B | 2.05B |
| Net Income | 1.28B | 665.00M | 4.25B | 1.62B | -2.42B |
Balance Sheet | |||||
| Total Assets | 39.15B | 39.86B | 42.94B | 40.05B | 36.28B |
| Cash, Cash Equivalents and Short-Term Investments | 8.91B | 8.24B | 9.16B | 9.60B | 8.28B |
| Total Debt | 4.75B | 5.19B | 5.52B | 5.66B | 6.49B |
| Total Liabilities | 18.40B | 19.23B | 21.52B | 22.59B | 23.65B |
| Stockholders Equity | 20.66B | 20.54B | 21.33B | 17.36B | 12.56B |
Cash Flow | |||||
| Free Cash Flow | 2.02B | 665.00M | 873.00M | 2.07B | 1.28B |
| Operating Cash Flow | 2.49B | 1.32B | 1.47B | 2.63B | 1.76B |
| Investing Cash Flow | -117.00M | 1.04B | -1.88B | -1.79B | -1.52B |
| Financing Cash Flow | -2.00B | -1.50B | -837.00M | -1.21B | 883.00M |
Nokia Technical Analysis
Negative
4.75
Price Trends
5.18
Negative
5.12
Negative
4.80
Negative
Market Momentum
-0.12
Positive
26.39
Positive
13.47
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NOK, the sentiment is Negative. The current price of 4.75 is below the 20-day moving average (MA) of 5.06, below the 50-day MA of 5.18, and below the 200-day MA of 4.80, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 26.39 is Positive, neither overbought nor oversold. The STOCH value of 13.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NOK.
Nokia Risk Analysis
Nokia disclosed 34 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 1 New Risks
1.
We may be unable to realize the anticipated benefits, synergies, cost savings or efficiencies from acquisitions, and we may encounter issues or inefficiencies related to our organizational and operational structure including being unable to successfully implement related business plans. Q4, 2024
Nokia Peers Comparison
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $69.49B | 35.13 | 189.18% | 1.03% | 7.45% | 46.78% | |
74 Outperform | $27.70B | 21.81 | 6.39% | 2.50% | 11.63% | -24.41% | |
73 Outperform | $12.01B | 118.37 | 3.71% | ― | 2.86% | -29.92% | |
68 Neutral | ¥228.97B | 14.57 | 7.50% | 2.69% | 9.28% | 6.70% | |
64 Neutral | $25.70B | 31.87 | 5.70% | 4.32% | -9.96% | -6.83% | |
63 Neutral | $25.29B | 14.88 | 19.63% | 0.35% | 0.98% | ― |
* Technology Sector Average
Performance Comparison
NOK
Nokia
4.75
1.09
29.78%
CIEN
Ciena
84.98
34.51
68.38%
ERIC
Telefonaktiebolaget LM Ericsson
7.46
0.89
13.55%
MSI
Motorola Solutions
420.46
28.19
7.19%
HPE
Hewlett Packard Enterprise
21.11
1.10
5.50%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.