NEW YORK (TheStreet) -- Nokia (NOK) - Get Report shares are up 0.85% to $7.09 in early afternoon trading on Friday as a group of German luxury-car manufacturers close in on purchasing Nokia's digital maps business for $3 billion, according to Bloomberg.

The group, which includes BMW AG, Audi (VLKAY) and Mercedes (DDAIF) could close the deal this week and announce it as soon as Mondayaccording to Bloomberg sources.

Other investors rumored to be interested in Nokia's navigation unit, HERE, include Uber Technologies and unnamed private equity investors. 

Last month, Bloomberg reported that the German car group were the front runners to place the winning bid for the business as they are already users of the technology.

Nokia's HERE supplies mapping data for about 80% of cars with in-dash navigation systems in North America and Europe.

TheStreet Ratings team rates NOKIA CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate NOKIA CORP (NOK) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Communications Equipment industry. The net income increased by 157.7% when compared to the same quarter one year prior, rising from -$329.27 million to $190.12 million.
  • The current debt-to-equity ratio, 0.31, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, NOK has a quick ratio of 1.51, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 11.2%. Since the same quarter one year prior, revenues slightly dropped by 7.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Net operating cash flow has decreased to -$213.75 million or 12.42% when compared to the same quarter last year. Despite a decrease in cash flow NOKIA CORP is still fairing well by exceeding its industry average cash flow growth rate of -22.44%.
  • NOK has underperformed the S&P 500 Index, declining 12.50% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • You can view the full analysis from the report here: NOK Ratings Report