Nokia (NOK) AI Stock Analysis

Compare

10,564 Followers

Top Page

Nokia

(NYSE:NOK)

Rating:57Neutral

Price Target:

$4.50

▲(6.38% Upside)

Nokia's overall stock score reflects a mixed financial outlook with strong cash flow and balance sheet stability. The technical analysis indicates bearish trends, while valuation suggests potential overvaluation. Earnings call insights reveal strategic strengths but also caution due to external financial pressures, impacting profitability targets.

Nokia (NOK) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$23.21B

Dividend Yield3.66%

Average Volume (3M)20.78M

Price to Earnings (P/E)22.1

Beta (1Y)0.42

Revenue Growth-2.39%

EPS Growth157.33%

CountryUS

Employees78,434

SectorTechnology

Sector Strength88

IndustryCommunication Equipment

Share Statistics

EPS (TTM)0.05

Shares Outstanding5,455,850,600

10 Day Avg. Volume17,202,856

30 Day Avg. Volume20,781,659

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.16

Enterprise Value/Revenue3.00

Enterprise Value/Gross Profit7.08

Enterprise Value/Ebitda46.22

Forecast

1Y Price Target

$5.80

Price Target Upside37.12% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering5

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 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 Key Performance Indicators (KPIs)

Any

Gross Profit by Segment

Gross Profit by Segment
Shows profit after direct costs for each business unit, revealing efficiency and pricing power across different segments.

Chart InsightsNokia's Network Infrastructure and Cloud and Network Services segments show resilience with recent growth, driven by strong demand and strategic deals. However, Mobile Networks faces challenges, reflected in declining profits due to past revenue recognition and external pressures like currency fluctuations and tariffs. Despite these hurdles, Nokia's focus on AI and technology advancements, alongside robust infrastructure growth, positions it for long-term opportunities. The revised profit outlook highlights the impact of macroeconomic factors, yet the company remains optimistic about cash flow and strategic growth areas.

Data provided by:

Main Street Data

Nokia Earnings Call Summary

Earnings Call Date:Jul 24, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 23, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted strong growth in Network Infrastructure and Cloud and Network Services, accompanied by positive reception for the Infinera acquisition. However, these were offset by significant challenges in Mobile Networks, currency and tariff headwinds, and a reduction in the full-year outlook. The balance between the positive and negative aspects suggests a mixed performance.

Q2-2025 Updates

Positive Updates

Strong Growth in Network Infrastructure

Network Infrastructure delivered 8% growth, with Fixed Networks growing 17%, Optical Networks growing 6%, and IP Networks growing 3%. Hyperscalers accounted for 5% of net sales in Q2, and there was a strong book-to-bill ratio in Optical Networks.

Cloud and Network Services Performance

Cloud and Network Services net sales grew by 14% in the quarter, driven by strong expansion in Core Networks and an improvement of 520 basis points in gross margin.

Positive Reception to Infinera Acquisition

The acquisition of Infinera showed continued strong commercial momentum in Optical Networks, though tempered by supply constraints. The integration is on track to achieve committed synergies.

Continued Market Leadership in IP Networks

Nokia maintained its #1 position in edge routing and #2 in total routing, indicating strong market leadership.

Negative Updates

Decline in Mobile Networks

Mobile Networks net sales declined by 13%, primarily due to a EUR 150 million impact from accelerated revenue recognition in the previous year. Gross margin also declined by 70 basis points year-on-year.

Currency and Tariff Headwinds

Currency fluctuations, particularly a weaker U.S. dollar, posed a EUR 230 million headwind to operating profit outlook, including a EUR 90 million noncash currency impact in venture funds. Tariffs are expected to impact operating profit by EUR 50 million to EUR 80 million for the full year.

Lowered Full Year Outlook

The full-year operating profit outlook was reduced from EUR 1.9 billion to EUR 2.4 billion to a new range of EUR 1.6 billion to EUR 2.1 billion, driven by currency and tariff impacts.

Supply Chain Constraints in Optical Networks

Optical Networks growth was hampered by modest supply chain constraints, limiting potential growth to over 10%.

Company Guidance

In the second quarter of 2025, Nokia's financial performance was mixed, reflecting both positive growth and challenges. Network Infrastructure and Cloud and Network Services showed good growth, but Mobile Networks experienced a decline due to accelerated revenue recognition from the previous year. Profitability was impacted by currency fluctuations, particularly the weaker U.S. dollar, creating a EUR 50 million non-cash negative impact from venture funds, including a EUR 60 million negative impact from currency. Nokia's full-year outlook for 2025 was adjusted, with expected operating profit revised to EUR 1.6 billion to EUR 2.1 billion due to currency impacts and tariffs. Despite these challenges, the company sees strong growth opportunities in Network Infrastructure and Cloud and Network Services, with continued stable sales in Mobile Networks and a projected EUR 1.1 billion operating profit in Nokia Technologies. Free cash flow conversion guidance remains at 50% to 80% of comparable operating profit.

Nokia Financial Statement Overview

Summary

Nokia's financial statements reveal a robust cash flow and a strong balance sheet with improved leverage. However, revenue volatility and challenges in revenue growth present risks. Profitability margins have improved, and cost management remains effective, supporting financial resilience.

Income Statement

Positive

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

Positive

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

Positive

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	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

Technical Analysis Sentiment

Negative

Last Price4.23

Price Trends

50DMA

4.53

Negative

100DMA

4.82

Negative

200DMA

4.73

Negative

Market Momentum

MACD

-0.04

Negative

RSI

42.20

Neutral

STOCH

48.75

Neutral

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 4.23 is above the 20-day moving average (MA) of 4.21, below the 50-day MA of 4.53, and below the 200-day MA of 4.73, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 42.20 is Neutral, neither overbought nor oversold. The STOCH value of 48.75 is Neutral, 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

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 (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSCO	80 Outperform	$273.60B	26.47	22.58%	2.39%	5.30%	3.07%
MSI	75 Outperform	$78.71B	38.03	152.71%	0.89%	6.45%	44.24%
UI	72 Outperform	$31.95B	44.91	186.53%	0.49%	33.45%	103.34%
ERIC	70 Outperform	$26.90B	15.70	19.63%	3.46%	0.98%	―
HPE	69 Neutral	$29.62B	23.32	6.39%	2.29%	11.63%	-24.41%
Sector *	61 Neutral	$35.45B	8.20	-10.08%	1.91%	8.56%	-9.51%
NOK	57 Neutral	$23.21B	22.07	4.31%	3.66%	-2.39%	157.33%

* Technology Sector Average

Performance Comparison

NOK

Nokia

4.23

-0.04

-0.94%

CSCO

Cisco Systems

67.80

19.08

39.16%

ERIC

Telefonaktiebolaget LM Ericsson

7.75

0.58

8.09%

MSI

Motorola Solutions

479.00

42.94

9.85%

Ubiquiti Networks

528.52

334.40

172.26%

HPE

Hewlett Packard Enterprise

22.68

4.16

22.46%

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.Date of analysis: Jul 25, 2025