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Nokia Oyj ADR NOK

Morningstar Rating
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Stock XNYS Rating as of
$3.89 +0.11 (2.91%)
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As of Delayed Price Pre-Open: $3.85 −0.04
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Company Report

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Nokia: Acquisition of Infinera Is a Smart Use of Capital

Matthew Dolgin

The agreement to acquire optical network solutions provider Infinera should lead to a beneficial increase in Nokia’s optical solutions scale and offers the opportunity for material cost savings. Nokia has been piling up cash while seeing its stock flounder amid a lull in wireless and wireline network spending in most geographies over the past year and a half. We think this is a good use of capital, and we continue to believe the shares are undervalued, as we are maintaining our EUR 5.50 fair value estimate.

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Price vs Fair Value

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NOK is trading within a range we consider fairly valued.
Price
$3.89
Fair Value
$2.50
Uncertainty
Medium
1-Star Price
$3.53
5-Star Price
$6.88
Economic Moat
Jdw
Capital Allocation
Gcpmyvwh

Bulls Say, Bears Say

Bulls

The capabilities of 5G will bring a new market of customers and a longer and more expansive cycle of network spending as enterprises deploy private networks and use Internet of Things functions.

Bears

Nokia’s customer base is concentrated among sophisticated communications service providers and equipment manufacturers, which yield significant buying power, limiting the company's pricing power.

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News

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Trading Information

Previous Close Price
$3.78
Day Range
$3.87–3.95
52-Week Range
$2.94–4.36
Bid/Ask
$3.85 / $3.86
Market Cap
$21.43 Bil
Volume/Avg
80,735 / 13.6 Mil

Key Statistics

Price/Earnings (Normalized)
11.58
Price/Sales
0.95
Dividend Yield (Trailing)
3.63%
Dividend Yield (Forward)
3.63%
Total Yield
4.77%

Company Profile

Nokia provides telecom equipment and services that are used to build wireless and fixed-line networks. It operates in four segments. The mobile networks segment, which sells equipment and services to telecom carriers to power public wireless networks, is the largest, followed closely by network infrastructure. Network infrastructure focuses on fixed networks, including infrastructure, solutions, and components for IP networks, optical networks, and submarine networks. Cloud and network services is a nascent segment catering to enterprises with as-a-service platforms. Nokia also has a sizable research division and patent business, where it licenses technology used by handset providers, consumer electronics firms, and other firms making electronic and Internet of Things products.
Sector
Technology
Industry
Communication Equipment
Stock Style Box
Large Value
Total Number of Employees
86,700
Website
https://www.nokia.com

Competitors

Valuation

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Metric
NOK
CSCO
Price/Earnings (Normalized)
 11.5811.88
Price/Book Value
 0.944.19
Price/Sales
 0.953.50
Price/Cash Flow
 7.5311.83
Price/Earnings
NOK
CSCO

Financial Strength

Metric
NOK
CSCO
Quick Ratio
 1.400.68
Current Ratio
 1.650.89
Interest Coverage
 —19.46
Quick Ratio
NOK
CSCO

Profitability

Metric
NOK
CSCO
Return on Assets (Normalized)
 3.94%15.60%
Return on Equity (Normalized)
 7.69%36.40%
Return on Invested Capital (Normalized)
 5.98%26.89%
Return on Assets
NOK
CSCO
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Communication Equipment Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Cisco Systems Inc
CSCO
DfgklkrbqLpcw$191.4 Bil
 Motorola Solutions Inc
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DtwvwwhkhKjvm$64.4 Bil
 Hewlett Packard Enterprise Co
HPE
YjbjztjkWvg$27.5 Bil
 Nokia Oyj
NOKBF
—Bfhjf$21.7 Bil
 Telefonaktiebolaget L M Ericsson Class B
ERIXF
RYcqns$21.2 Bil
 Telefonaktiebolaget L M Ericsson ADR
ERIC
StdfprtkCjwyj$21.2 Bil
 ZTE Corp Class H
ZTCOF
—Njkb$17.3 Bil
 Zebra Technologies Corp Class A
ZBRA
LwlfwvhtGjfqnc$15.7 Bil
 EchoStar Corp Class A
SATS
HspxpFrtm$4.8 Bil

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