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Nokia (NOK)
NYSE:NOK
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Nokia
(NYSE:NOK)
Select Model
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Rating:62Neutral
Price Target:
$5.00
▲(5.49% Upside)
Nokia's overall stock score reflects a balance of strong financial stability and cash flow against technical and valuation challenges. The company's robust performance in Network Infrastructure and Cloud Services is offset by revenue volatility and external pressures, such as currency fluctuations and tariffs. While the dividend yield offers some appeal, the high P/E ratio and technical indicators suggest caution.
Nokia (NOK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.51B
Dividend Yield3.27%
Average Volume (3M)23.14M
Price to Earnings (P/E)24.5
Beta (1Y)0.41
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. Volume29,602,655
30 Day Avg. Volume23,142,964
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 Cap1.05
Enterprise Value/Revenue3.00
Enterprise Value/Gross Profit7.08
Enterprise Value/Ebitda46.22
Forecast
1Y Price Target
$5.63Price Target Upside18.78% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Nokia Business Overview & Revenue Model
Company DescriptionNokia 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 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
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: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
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
Positive
4.74
Price Trends
4.39
Positive
4.77
Negative
4.76
Negative
Market Momentum
0.11
Negative
61.74
Neutral
80.12
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 4.74 is above the 20-day moving average (MA) of 4.56, above the 50-day MA of 4.39, and below the 200-day MA of 4.76, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 61.74 is Neutral, neither overbought nor oversold. The STOCH value of 80.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | 32.27B | 31.19 | 5.11% | 2.13% | 14.39% | -38.96% | |
76 Outperform | 266.13B | 26.52 | 22.31% | 2.41% | 5.30% | 3.07% | |
75 Outperform | 75.83B | 37.89 | 107.52% | 0.96% | 6.45% | 44.24% | |
72 Outperform | 38.63B | 55.75 | 106.53% | 0.41% | 33.45% | 103.34% | |
69 Neutral | 27.62B | 16.60 | 20.02% | 3.32% | 0.98% | ― | |
62 Neutral | $25.51B | 24.49 | 4.31% | 3.27% | -2.39% | 157.33% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
NOK
Nokia
4.74
0.49
11.53%
CSCO
Cisco Systems
67.32
15.88
30.87%
ERIC
Telefonaktiebolaget LM Ericsson
8.20
0.60
7.89%
MSI
Motorola Solutions
455.13
11.42
2.57%
UI
Ubiquiti Networks
638.56
419.43
191.41%
HPE
Hewlett Packard Enterprise
24.46
4.65
23.47%
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.