6.74%
6.33%
6.09%
26.89%
38.36%
-12.50%
30.50%

Company Description

Nokia 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.

Market Data

Last Price 4.59
Change Percentage 6.74%
Open 4.32
Previous Close 4.3
Market Cap ( Millions) 25011
Volume 33617404
Year High 4.66
Year Low 3.05
M A 50 4.24
M A 200 3.87

Financial Ratios

FCF Yield 14.76%
Dividend Yield 2.18%
ROE 2.05%
Debt / Equity 19.40%
Net Debt / EBIDTA -123.66%
Price To Book 1.23
Price Earnings Ratio 59.04
Price To FCF 6.77
Price To sales 1.3
EV / EBITDA 8.76

News

Business Breakdown

Expected Mid-Term Growth

Segment nยฐ1 -> Mobile Networks

Expected Growth : 1.8 %

What the company do ?

Nokia Oyj's Mobile Networks segment provides mobile network infrastructure, software, and services to communication service providers, enabling them to offer mobile voice and data services.

Why we expect these perspectives ?

Nokia Oyj's 1.8% growth in Mobile Networks is driven by increasing demand for 5G infrastructure, expansion into new markets, and growth in software and services. Additionally, the company's focus on cost savings and operational efficiency has contributed to the growth. Furthermore, Nokia's strong R&D investments in 5G and IoT have enabled it to capitalize on emerging opportunities.

Segment nยฐ2 -> Network Infrastructure

Expected Growth : 1.5 %

What the company do ?

Nokia Oyj's Network Infrastructure provides a comprehensive portfolio of products and solutions for communication service providers, including 5G, LTE, and fixed networks.

Why we expect these perspectives ?

Nokia Oyj's 1.5% growth in Network Infrastructure is driven by increasing demand for 5G deployments, expansion into private wireless networks, and growing need for network modernization and densification. Additionally, the company's focus on cost savings and operational efficiency initiatives contributes to its growth momentum.

Segment nยฐ3 -> Cloud and Network Services

Expected Growth : 2.2 %

What the company do ?

Nokia Oyj's Cloud and Network Services provide scalable, secure, and efficient solutions for communication service providers, enabling them to build and manage modern networks.

Why we expect these perspectives ?

Nokia Oyj's Cloud and Network Services segment growth of 2.2% is driven by increasing demand for 5G network infrastructure, expansion of private wireless networks, and growing adoption of cloud-based services. Additionally, the company's focus on digitalization, automation, and cost savings initiatives contribute to the segment's growth.

Segment nยฐ4 -> Nokia Technologies

Expected Growth : 1.2 %

What the company do ?

Nokia Technologies is a division of Nokia Oyj, focusing on advanced technology development, including 5G, IoT, and digital health innovations.

Why we expect these perspectives ?

Nokia Technologies' 1.2% growth driven by increasing demand for 5G and IoT solutions, patent licensing agreements, and strategic investments in digital health and automotive technologies, offset by declining legacy technology sales.

Segment nยฐ5 -> Group Common and Other

Expected Growth : 1.0 %

What the company do ?

Group Common and Other from Nokia Oyj refers to the segment that includes Nokia's headquarters, treasury, and other centralized functions, as well as the company's intellectual property and patent licensing business.

Why we expect these perspectives ?

Nokia Oyj's Group Common and Other segment growth of 1.0 is driven by increasing investments in 5G and IoT research, strategic partnerships, and cost savings from operational efficiencies. Additionally, growth in software and services revenue, driven by demand for network infrastructure and digitalization, contributes to the segment's expansion.

Nokia Oyj Products

Product Range What is it ?
5G RAN Nokia's 5G RAN (Radio Access Network) provides a comprehensive portfolio of products and solutions for 5G network infrastructure, including base stations, small cells, and radio access controllers.
IP/Optical Networks Nokia's IP/Optical Networks provide a range of products and solutions for building and managing IP and optical networks, including routers, switches, and optical transport systems.
Network Services Nokia's Network Services provide a range of professional services, including network planning, implementation, and optimization, as well as managed services and network operations.
Nokia Software Nokia Software provides a range of software products and solutions for network management, analytics, and security, including Nokia NetGuard, Nokia Impact, and Nokia AVA.
Altiplano Altiplano is Nokia's software-defined networking (SDN) platform, providing a range of products and solutions for network automation, orchestration, and management.
Nuage Networks Nuage Networks is Nokia's software-defined networking (SDN) solution for datacenter and cloud networks, providing a range of products and solutions for network automation and orchestration.

Nokia Oyj's Porter Forces

Nokia's products and services have substitutes in the market, but the company's strong brand image and quality of products reduce the threat of substitutes.

Nokia's customers have some bargaining power due to the availability of substitutes, but the company's strong distribution network and customer loyalty programs reduce this power.

Nokia's suppliers have some bargaining power due to the company's dependence on them for components and raw materials, but the company's large scale of operations and long-term contracts reduce this power.

The threat of new entrants is low due to the high barriers to entry in the telecommunications industry, including the need for significant capital investment and technological expertise.

The telecommunications industry is highly competitive, with many established players competing for market share, which increases the intensity of rivalry.

Capital Structure

Value
Debt Weight 17.61%
Debt Cost 7.39%
Equity Weight 82.39%
Equity Cost 7.39%
WACC 7.39%
Leverage 21.37%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
HPE Hewlett Packard Enterprise Company provides solutions that allow customers to capture, analyze, and act upon data seamlessly in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. โ€ฆ
EVS.BR EVS Broadcast Equipment SA provides live video technology for broadcast and media productions worldwide. The company offers live replay and story telling products, including live replay and highlights systems, cloud-based โ€ฆ
GRMN Garmin Ltd. designs, develops, manufactures, markets, and distributes a range of wireless devices in the Americas, the Asia Pacific, Australian Continent, Europe, the Middle East, and Africa. Its Fitness segment โ€ฆ
CSCO Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, โ€ฆ
ERIC-B.ST Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides communication infrastructure, services, and software solutions to the telecom and other sectors. It operates through four segments: Networks, Digital Services, Managed โ€ฆ

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
4.59$
Current Price
4.59$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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