NOK : NYSE : Technology
$4.23 | %
Today's Range: 4.2 - 4.26
Avg. Daily Volume: 1.21113E7
12/02/16 - 4:08 PM ET

Financial Analysis


NOKIA CORP's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. NOKIA CORP has average liquidity. Currently, the Quick Ratio is 1.34 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 106.64% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)6918.983393.47
EBITDA ($mil)679.62569.86
EBIT ($mil)241.39489.38
Net Income ($mil)-167.82170.08


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)10554.737686.15
Total Assets ($mil)48783.0422916.7
Total Debt ($mil)4330.03086.29
Equity ($mil)20897.0610112.77


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin44.645.75
EBITDA Margin9.8216.79
Operating Margin3.4914.42
Sales Turnover0.470.6
Return on Assets0.724.93
Return on Equity-5.0910.29
Debt Q3 FY16 Q3 FY15
Current Ratio1.622.35
Debt/Capital0.170.23
Interest Expense92.6993.81
Interest Coverage2.65.22


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)5772.143624.8
Div / share0.00.0
EPS-0.020.05
Book value / share3.622.79
Institutional Own % n/a n/a
Avg Daily Volume1.2030037E71.2696499E7

Valuation


HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 1.15 indicates a significant discount versus the S&P 500 average of 2.79 and a significant discount versus the industry average of 3.57. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, NOKIA CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
NOK NM Peers 32.47   NOK NM Peers 14.62

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

NOK's P/E is negative making this valuation measure meaningless.

 

Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

NOK's P/CF is negative making the measure meaningless.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
NOK 15.26 Peers 19.18   NOK NA Peers 0.93

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

NOK is trading at a valuation on par with its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
NOK 1.15 Peers 3.57   NOK -148.14 Peers 77.07

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

NOK is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, NOK is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
NOK 1.04 Peers 3.14   NOK 67.54 Peers 12.45

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

NOK is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

NOK has a sales growth rate that significantly exceeds its peers.

 

 

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