NOK  Nokia Corporation






Radio And Television Broadcasting And Communications Equipment

Market Cap.


Vuru Grade


Current Price

+0.04 (+0.82%)

Growth Price

Overvalued by 62.69%

Stability Price

Overvalued by 5.11%

Company Metrics

  • P/E 30.921
  • P/S 1.01
  • P/B 1.39
  • EPS -0.09
  • Cash ROIC -1.59%
  • Cash Ratio 0.76
  • Dividend 0.18 / 3.7%
  • Avg. Vol. 11.69M
  • Shares 5.65B
  • Market Cap. 27.86B

Company Description

Nokia Corporation manufactures and sells mobile devices, and provides Internet and digital mapping and navigation services worldwide. Its Devices & Services segment develops and manages a portfolio of mobile devices, such as mobile phones, smartphones, and mobile computers; services; applications; and content. It also offers Internet services focusing on music, navigation, media, and messaging, as... more

Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow


There is no news available at this time.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for NOK to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate NOK's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$4.93 Current Price

$1.84 Growth Price (DCF)

Overvalued by 62.69%

Growth Rate Assumed by Market: 500.00%

Future Free Cash Flow Growth Rate: 0.0%

Discount Rate: 15.0%

NOK's most recent year of (normalized) free cash flow is negative. This is the base number for forward projections. This means that if you increase the growth rate, the amount of negative FCF grows, thereby decreasing the price.

Show Free Cash Flow numbers

$4.68 Stability Price (EPV)

Overvalued by 5.11%

Discount Rate: 15.0%

$13.84 Book Price

Undervalued by 180.79%

Very Poor Cash Return on Invested Capital over the past 5 years

NOK has failed to generate positive returns on its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

NOK has lost $1.59 of cash for every $100 invested.
Figures in EUR. Fiscal year ends in December
Free Cash Flow -815.00M -335.00M 964.00M 193.00M -1.93B
divided by
Invested Capital 5.39B 6.44B 5.79B 4.58B 22.67B
Cash ROIC -15.11% -5.20% 16.64% 4.21% -8.52%

Very Poor Return on Equity over the past 5 years

NOK has shown an inability to deliver results for shareholders. This could be due to poor management, NOK operating in a highly competitive industry, or having a weak business in general.

NOK has generated a $5.19 loss for every $100 of Shareholders' Equity.
Figures in EUR. Fiscal year ends in December
Net Income -3.79B 41.00M 1.17B 1.19B -912.00M
divided by
Stockholders' Equity 8.06B 6.47B 8.61B 10.50B 20.09B
Return on Equity -47.00% 0.63% 13.60% 11.37% -4.54%

Good Business Performance over the past 10 years

It's likely NOK has been unable to maintain profitability in tough economic times, making it a somewhat cyclical business. The other possibility is NOK has expended significant capital on items such as property, plant and equipment in specific years. Look for correlations.

NOK has created positive free cash flow for 7 or 8 of the past 10 years.
Figures in EUR. Fiscal year ends in December
Free Cash Flow 7.00B 2.19B 2.69B 4.10B 540.00M -815.00M -335.00M 964.00M 193.00M -1.93B

Weak Balance Sheet

NOK's financial position is not ideal. The key is to check whether NOK is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in EUR. Fiscal year ends in December
Cash 11.74B 6.85B 9.20B 12.65B 10.90B 9.91B 9.30B 7.98B 9.96B 9.62B
Current Assets 29.26B 24.56B 23.61B 27.15B 25.46B 20.88B 13.80B 13.72B 15.82B 20.72B
Total Assets 37.55B 39.73B 35.74B 39.12B 36.21B 29.95B 25.19B 21.06B 20.93B 44.90B
Current Liabilities 18.95B 20.43B 15.19B 17.54B 17.44B 14.65B 9.45B 7.29B 6.39B 12.61B
Total Liabilities 22.80B 25.47B 22.65B 24.74B 24.33B 21.89B 18.72B 12.45B 10.42B 24.81B
Stockholder' Equity 14.76B 14.26B 13.09B 14.38B 11.87B 8.06B 6.47B 8.61B 10.50B 20.09B
Current Ratio 1.54 1.20 1.55 1.55 1.46 1.43 1.46 1.88 2.48 1.64
TL-to-TA 0.61 0.64 0.63 0.63 0.67 0.73 0.74 0.59 0.50 0.55

Low or No Reinvestment of Profits over the past 10 years

NOK has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to NOK operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in EUR. Fiscal year ends in December
Retained Earnings 13.85B 11.74B 10.13B 10.50B 7.84B 4.00B 2.58B 4.71B 6.28B 3.59B
Retained Earnings Growth - -15.28% -13.67% 3.63% -25.37% -49.02% -35.39% 82.49% 33.31% -42.86%

Highly Competitive Industry over the past 10 years

It's likely that NOK is in an industry with low barriers to entry, spurring high competition. If Gross Margins are at least satisfactory, it's likely NOK invests heavily in R&D and Sales, General & Administrative expenses.

Only $2.82 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in EUR. Fiscal year ends in December
Net Income 7.20B 4.00B 891.00M 1.85B -1.16B -3.79B 41.00M 1.17B 1.19B -912.00M
divided by
Revenue 51.00B 50.91B 40.98B 42.45B 38.66B 30.18B 12.71B 12.73B 12.50B 23.61B
Net Profit Margin 14.11% 7.86% 2.17% 4.36% -3.01% -12.56% 0.32% 9.20% 9.55% -3.86%

Growing Pricing Power over the past 10 years

NOK has growing gross margins, suggesting that they have been able to set higher prices without consideration of the cost of goods sold. Look at its future prospects to determine sustainability and whether the economic moat will continue to strengthen.

$35.36 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in EUR. Fiscal year ends in December
Gross Profit 17.28B 17.44B 13.26B 12.82B 11.32B 8.39B 5.35B 5.64B 5.45B 8.46B
divided by
Revenue 51.00B 50.91B 40.98B 42.45B 38.66B 30.18B 12.71B 12.73B 12.50B 23.61B
Gross Margin 33.89% 34.26% 32.36% 30.20% 29.28% 27.80% 42.06% 44.28% 43.63% 35.81%

High Capital Intensity over the past 10 years

NOK spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

168.93% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in EUR. Fiscal year ends in December
Capital Expenditure 870.69M 1.02B 558.00M 679.00M 597.00M 461.00M 407.00M 311.00M 314.00M 477.00M
divided by
Net Income 7.20B 4.00B 891.00M 1.85B -1.16B -3.79B 41.00M 1.17B 1.19B -912.00M
Capital Expenditure Ratio 12.10% 25.57% 62.63% 36.70% -51.29% -12.17% 992.68% 26.56% 26.30% -52.30%

Very Strong Dividend History over the past 10 years

NOK has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests NOK is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in EUR. Fiscal year ends in December
Dividend Paid 1.76B 2.06B 1.55B 1.52B 1.54B 755.00M 71.00M 1.39B 512.00M 1.52B
divided by
Shares Outstanding 3.93B 3.78B 3.72B 3.71B 3.71B 3.71B 3.71B 4.13B 3.95B 5.74B
Dividend Paid Per Share 0.60 0.73 0.56 0.55 0.55 0.27 0.03 0.45 0.17 0.35
Price at Year End 32.56 13.61 11.56 9.64 4.82 3.81 7.99 7.95 7.12 4.81
Dividend Yield 1.84% 5.35% 4.81% 5.68% 11.50% 7.15% 0.32% 5.67% 2.44% 7.34%

History of Stock Buybacks over the past 10 years

NOK has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in EUR. Fiscal year ends in December
Shares Outstanding 3.93B 3.78B 3.72B 3.71B 3.71B 3.71B 3.71B 4.13B 3.95B 5.74B
Stock Bought Back - 4.01% 1.59% 0.21% 0.09% -0.02% -0.03% -10.15% 4.62% -31.21%
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Posted by patrickvb  (on August 22, 2012)
Microsoft and Nokia are holding a joint press conference on Sept. 5 in New York to unveil the Windows phone 8 and the new Lumia.
Nokia also starts its own Nokia World event in Helsinki, on the 5 & 6 September

Chris Weber, executive vice president of sales and marketing at Nokia, sent a Tweet "Samsung, take note, next generation Lumia coming soon.".
Posted by tivel  (on July 12, 2012)
VURU has a hell of a lot of nerve dropping its score by so much in one day. Explanation please.
Posted by tivel  (on July 12, 2012)
wtf? So we are basing some of our decisions on data that is not current? That cannot be it.
Posted by BankerWordsmith  (on June 23, 2012)
The charts read like a floor has been established. And the recent news about layoffs in Finland, should shake up Nokia's Finish nationalistic management. It must have been hard for the Microsoft former exec to get enough power to abandon Finland as a manufacturing point; but he has enough support now, that things might change.

We need to cover the past a bit to understand some internal items. Anyone in Finland 10 years ago was proud of the Tire maker Nokia. Nokia became a R&D powerhouse and had facilities & operations everywhere in Finland; and Nokia was expanding it's R&D and manufacturing into North America (Vancouver, San Diego, Irving, etc). A sure way for a Finn to see the world was to have a degree & work for Nokia.

There was a certain amount of pride in making the high-end phones in Finland. And it was reinforced by folks who they saw looking for the white "Nokia made in Finland" label in the battery compartment. But this is a for profit company, not a small town life support system.

Products: How much do you need to spend on phone R&D? Nokia spent lots, which is what the business required. Then the RF tech wasn't well known to lots of people, and hard to get right. The software/firmware was tough to control when you yearly introduced 100's of models coming out, spread out across the world. Farming out manufacturing kept EPS going - for a little while. Free R&D started showing up in the form of QualComm Ref designs and the Andriod OS. So the moat surrounding the business dried up, and margin's faded as Nokia had to compete on final product price with similar but very cheaply acquired tech.

If Nokia stays independent, there are only two ways this will go: Nokia will exists as a shell in Finland supported by Finland. Or it starts to act like a company fighting for it's life as it moves out of Finland. However, I would say the odds of Nokia staying independent after a European recovery are very low. Once the money becomes available, this company will be taken-over, taken private. In a worst case scenario, split apart for patent rights.

If you are in Nokia, then stay, no point in selling now. If you are looking to trade, buy and look for some action on news.

This might be a good medium term-entry, but don't expect Lumina to pull this company out of the slump. It's going to take the old multiple product/marketing roll-outs to compete with the singleton Apple iPhone brand. Old companies have too much old infrastructure that needs dismantlement - and that's hard to do in real life.

By essentially selling out to Microsoft, Nokia is taking a huge gamble. Microsoft is known to dump hardware. The MS software group will fight for recognition, and under assist. Ie throw up road blocks for hooks and integration, ie it's best resources after the last reporter finishes his last free drink at a conference. Don't forget, Microsoft has the cloud to worry about. This is just a small diversion for Microsoft, and once Microsoft's attention drifts, say goodbye Nokia.

A couple of things have to go perfectly for Nokia's share holders to make money on a turn around. Nokia has bet on it's turn around on Microsoft; and Microsoft's is fickle about hardware. If I really wanted to bet, I would bet on a share price rise due to some rumor, a buy-in, a buy-out...but I wouldn't bet on the fundamentals of today's phone business contributing to EPS.
Posted by Jon855  (on April 26, 2012)
NOK is just bouncing off a 14 years low. The Lumia lineup is NOK's attempt to ditch NOK's own OS for the smartphone market. NOK has decided to partner up with MSFT to use MSFT's OS on their phones.

Is it paying off?

Consider this, the Lumia 900 could have been had for free because NOK were giving a full rebate on the phone within a time frame due to some "software issue" which has been patched. This shows that NOK has an interpretative interest to do themselves better and while the Windows 7.5 OS on the Lumia 900 is pretty efficient. Windows 8 OS for the phones should be rolling out for all phones that presently has Windows 7.5 OS on it, whether it is assured has to be seen. Microsoft hasn't released any statement on whether all phones will obtain the upgrade or not.

From what I have observed, Nokia will be coming back strongly within few quarters. Nokia's TV Spots for Lumia 900 are brilliant.

Full Disclosure: I have a Lumia 900.
Posted by Honeybadger  (on June 12, 2012)
Can't say for certain, but vuru probably just inputted 2011 numbers. New numbers, new grade.
Posted by tivel  (on July 12, 2012)
Ok thanks? That response SUCKS! First of all, it cannot be correct, that they don't input current numbers. I thought this is supposed to be virtually a real time analysis. Second, 20 points in one day? I would love to hear their justification for that one.
Posted by Honeybadger  (on July 13, 2012)
Ok, so you are complaining about a service that you are getting for absolutely free. Gift horse... mouth...imo. Furthermore you are griping about my take on why it may have fallen. Why don't you gripe to NOK? That would be more well placed.
Posted by mcruscetti  (on March 21, 2012)
From what I hear, the Windows Mobile software is acutally legitimately good. It's great to see the space heating up a little more.

The question is can Nokia deliver the goods on the hardware. I've gotta admit i have a soft spot for Nokia. I loved the simplicity of their old phones but the question is can they compete with Apple. Their flagship product the Lumia 900 ( - Image) looks good but a bit bulky.. I don't know if it's enough.
Posted by yusiye  (on April 26, 2012)
but from the people who actually own the new nokia windows phone, its still far out of the league with iphone, even android. I don't think they can turn around anytime soon.
I see they probably will follow RIM.
Posted by leonfriese77  (on April 26, 2012)
Always good to get consumers insights when it comes to this. Industry reports can often be misleading. Remember when that guy from Bloomberg said the iPhone would fail?