Nokia logged a -0.9% change during today's morning session, and is now trading at a price of $4.04 per share.
Nokia returned losses of -18.0% last year, with its stock price reaching a high of $5.11 and a low of $3.75. Over the same period, the stock underperformed the S&P 500 index by -33.0%. As of April 2023, the company's 50-day average price was $3.97. Nokia Oyj provides mobile, fixed, and cloud network solutions worldwide. Based in Espoo, Finland, the large-cap Technology company has 86,896 full time employees. Nokia has offered a 2.9% dividend yield over the last 12 months.
The Company Has Lacking Information on Debt Levels:
| 2022-03-02 | 2023-03-02 | |
|---|---|---|
| Revenue (MM) | $22,202 | $24,911 |
| Gross Margins | 40.0% | 41.0% |
| Operating Margins | 10% | 9% |
| Net Margins | 7.0% | 17.0% |
| Net Income (MM) | $1,645 | $4,259 |
| Net Interest Expense (MM) | -$241 | -$108 |
| Earnings Per Share | $0.29 | $0.75 |
| EPS Growth | n/a | 158.62% |
| Diluted Shares (MM) | 5,612 | 5,684 |
| Free Cash Flow (MM) | $3,082 | $2,042 |
| Capital Expenditures (MM) | -$457 | -$568 |
| Net Current Assets (MM) | n/a | n/a |
Nokia has weak revenue growth and a flat capital expenditure trend, weak operating margings with a stable trend, and irregular cash flows. We also note that the company benefits from exceptional EPS growth and an excellent current ratio. However, the firm has slimmer gross margins than its peers.
The Market May Be Undervaluing Nokia's Assets and Equity:
Nokia has a trailing twelve month P/E ratio of 5.1, compared to an average of 27.16 for the Technology sector. Based on its EPS guidance of $0.46, the company has a forward P/E ratio of 8.6. The company doesn't provide forward earnings guidance, and the compound average growth rate of its last 2 years of reported EPS is 64.0%. On this basis, Nokia's PEG ratio is 0.08. Using instead the 11.4% weighted average of Nokia's earnings CAGR and the broader market's anticipated 5-year EPS growth rate, the company's PEG ratio is 0.44, which implies that its shares may be underpriced. Additionally, the market is possibly undervaluing Nokia in terms of its equity because its P/B ratio is 1.06 whereas the sector average is 6.23. The company's shares are currently trading -49.4% below their Graham number.
There's an Analyst Consensus of Strong Upside Potential for Nokia:
The 7 analysts following Nokia have set target prices ranging from $4.39 to $7.24 per share, for an average of $5.99 with a buy rating. As of April 2023, the company is trading -33.7% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
The largest shareholder is Artisan Partners Limited Partnership, whose 2% stake in the company is worth $370,305,227.
