Nokia (NOK) AI Stock Analysis

• Market Cap: $37.25B
• Dividend Yield: 2.06%
• Average Volume (3M): 63.76M
• Price to Earnings (P/E): 38.9
• Beta (1Y): 0.36
• 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: 111,398,021
• 30 Day Avg. Volume: 63,761,093
• 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: 0.66
• Enterprise Value/Revenue: 1.79
• Enterprise Value/Gross Profit: 4.15
• Enterprise Value/Ebitda: 18.91
• 1Y Price Target: $6.44
• Price Target Upside: -9.93% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 74 Outperform
• Price Target: $8.50 ▲(18.88% Upside)

Nokia's strong technical momentum and solid financial performance are the primary drivers of its stock score. While the valuation is somewhat high, the company's strategic growth in AI and cloud services and robust cash flow provide a positive outlook. Challenges in margin control and revenue volatility are notable risks.

Nokia Business Overview & Revenue Model

Company Description

Nokia Corporation is a global technology company based in Finland, primarily known for its telecommunications infrastructure and services. The company operates through two main sectors: Nokia Networks, which focuses on providing network equipment and services to telecommunications operators, and Nokia Technologies, which is involved in licensing its extensive portfolio of patents and technologies. Core products include mobile broadband infrastructure, fixed networks, 5G technology solutions, and software applications designed to enhance network performance and security.

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: 7.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 7.15 is above the 20-day moving average (MA) of 6.01, above the 50-day MA of 5.16, and above the 200-day MA of 4.93, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 70.99 is Negative, neither overbought nor oversold. The STOCH value of 58.88 is Neutral, 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	―	$294.32B	29.24	22.65%	2.19%	5.30%	3.07%
UI	―	$46.84B	65.83	186.53%	0.34%	33.45%	103.34%
ERIC	―	$34.49B	13.82	25.45%	2.86%	1.04%	―
NOK	―	$37.25B	38.89	4.03%	2.06%	5.05%	115.92%
HPE	―	$32.22B	30.84	5.37%	2.12%	14.39%	-38.96%
MSI	―	$67.74B	32.64	115.80%	1.11%	6.17%	35.41%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Nokia Corporate Events

Nokia Announces $1 Billion Strategic Partnership with NVIDIA

On October 28, 2025, Nokia announced a significant strategic partnership with NVIDIA, which includes a USD 1.0 billion equity investment by NVIDIA in Nokia. This investment will see NVIDIA become a 2.90% shareholder of Nokia. The partnership aims to advance the AI-RAN market and enhance data center networking, with Nokia using the proceeds to accelerate its strategic plans, including the development of 5G and 6G RAN software on NVIDIA’s architecture. This collaboration is expected to create substantial value for both companies and strengthen Nokia’s presence in the AI and Cloud market.

Nokia Manager’s Share Acquisition Highlights Market Confidence

On October 27, 2025, Nokia Corporation reported a manager’s transaction involving Tommi Uitto, a senior manager, who acquired shares on NASDAQ Helsinki. This transaction, under the EU Market Abuse Regulation, highlights Nokia’s ongoing internal financial activities and could indicate confidence in the company’s market positioning and future prospects.