Nokia (NOK) Stock Falling as CEO Says No Rush to Sell HERE

NEW YORK (TheStreet) -- Shares of Nokia (NOK) are falling 1.36% to $7.24 in Friday's morning trading after the company's CEO Rajeev Suri said while the mapping unit HERE had attracted "significant interest," the Finnish telecoms giant is waiting for higher bids, The Wall Street Journal reported.

Suri said the company is giving it more time, according to European Communications.

"We may not end up selling it if we don't get the right value," he added. "It has to be a good competitive deal for Nokia and our shareholders."

Many companies are reportedly teaming up to bid for HERE, as there were reports that Uber Technologies is joining China's largest search engine Baidu Technologies (BIDU) and Apax Partners to pursue the mapping unit, Bloomberg reported.

HERE is Nokia's map business unit that captures content such as road networks, buildings, parks and traffic patterns. The map unit supplies digital mapping software to car navigation systems and to portable devices such as smartphones users so they can navigate easily.

HERE's rivals include TomTom NV (TMOAY), a Dutch company that makes navigation and mapping products and Google (GOOGL), which makes its own Google Maps.

TheStreet Ratings team rates NOKIA CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate NOKIA CORP (NOK) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, notable return on equity, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."

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.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Communications Equipment industry and the overall market, NOKIA CORP's return on equity exceeds that of both the industry average and the S&P 500.
  • Despite currently having a low debt-to-equity ratio of 0.31, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that NOK's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.51 is high and demonstrates strong liquidity.
  • NOKIA CORP has improved earnings per share by 25.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, NOKIA CORP increased its bottom line by earning $0.37 versus $0.06 in the prior year. For the next year, the market is expecting a contraction of 13.5% in earnings ($0.32 versus $0.37).

If you liked this article you might like

10 Stocks That Are Ready to Change Direction

10 Stocks That Are Ready to Change Direction

Wall Street Futures Edge Higher Amid 'Super Thursday' Earnings; Apple Q1 Awaits

Wall Street Futures Edge Higher Amid 'Super Thursday' Earnings; Apple Q1 Awaits

What a Nationalized 5G Plan Would Mean for Google, Comcast, Verizon and Others

What a Nationalized 5G Plan Would Mean for Google, Comcast, Verizon and Others

5G, Sanofi, Ablynx, Coincheck and Bruno Mars - 5 Things You Must Know

5G, Sanofi, Ablynx, Coincheck and Bruno Mars - 5 Things You Must Know

What Is 5G Technology?

What Is 5G Technology?