Nokia shares jumped in January 2021 after an online community of individual investors piled into highly shorted stocks, with the aim of drastically driving up prices.
The campaign started after users on Reddit forum wallstreetbets saw that hedge funds were shorting GameStop (GME) to profit from perceived future losses.
To counteract, they rushed in to buy stock, quickly inflating prices far beyond what had ever been seen before. GameStop's stock surged from about US$17 a share to more than US$300.
Once the technique proved successful, users began applying it to other heavily shorted stocks, including Nokia. Shares climbed from a close of €3.39 on January 22 to a close of €4.40 on January 27.
However, several trading platforms were quick to take action, halting or restricting trading across a number of stocks. Nokia shares then dropped to a close of €3.82 on January 28th.
Although some platforms have now resumed trading, the market is still extremely volatile and traders should keep a keen eye on impacted stocks.
Based out of Finland, Nokia Corporation is a multinational telecommunications and consumer electronics giant that was created in 1865. Originally founded as a pulp mill and once a global leader in the mobile phone market, Nokia is now primarily a telecommunications and networks infrastructure company, most notably for global 5G networks. Nokia is also one of the largest employers in Finland and a critical component of the Finnish economy, once accounting for nearly 5% of the country's GDP.
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| Open | €3.2415 |
|---|---|
| High | €3.329 |
| Low | €3.2145 |
| Close | €3.3105 |
| Previous close | €3.2285 |
| Change | €0.082 |
| Change % | 2.5399% |
| Volume | 7,969,214 |
| 52-week range | €2.6731 - €3.8786 |
|---|---|
| 50-day moving average | €3.2731 |
| 200-day moving average | €3.3361 |
| Target price | €3.9 |
| PE ratio | 26.3208 |
| Dividend yield | €0.13 (3.8%) |
| Earnings per share (TTM) | €0.12 |
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The technical analysis gauge below displays real-time ratings for the timeframes you select. However, this is not a recommendation. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Historical closes compared with the last close of €3.3105
| 1 week (2024-04-12) | 4.35% |
|---|---|
| 1 month (2024-03-19) | 2.25% |
| 3 months (2024-01-19) | 6.69% |
| 6 months (2023-10-19) | 8.54% |
| 1 year (2023-04-19) | -22.48% |
|---|---|
| 2 years (2022-04-19) | -31.90% |
| 3 years (2021-04-19) | -5.91% |
| 5 years (2019-04-18) | -35.56% |
Valuing Nokia stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Nokia's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Nokia's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 26x. In other words, Nokia shares trade at around 26x recent earnings.
Nokia's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 0.4838. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Nokia's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Nokia's EBITDA (earnings before interest, taxes, depreciation and amortisation) is EUR€2.9 billion (£2.5 billion).
The EBITDA is a measure of a Nokia's overall financial performance and is widely used to measure stock profitability.
| Revenue TTM | EUR€22.3 billion |
|---|---|
| Operating margin TTM | 13.77% |
| Gross profit TTM | EUR€10.3 billion |
| Return on assets TTM | 3.07% |
| Return on equity TTM | 3.21% |
| Profit margin | 2.99% |
| Book value | €3.717 |
| Market capitalisation | EUR€17.5 billion |
TTM: trailing 12 months
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Nokia.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 10.79
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Nokia's overall score of 10.79 (as at 12/31/2018) is excellent – landing it in it in the 6th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Nokia is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Environmental score: 1.22/100
Nokia's environmental score of 1.22 puts it squarely in the 2nd percentile of companies rated in the same sector. This could suggest that Nokia is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Social score: 7.74/100
Nokia's social score of 7.74 puts it squarely in the 2nd percentile of companies rated in the same sector. This could suggest that Nokia is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Governance score: 3.76/100
Nokia's governance score puts it squarely in the 2nd percentile of companies rated in the same sector. That could suggest that Nokia is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Nokia scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Nokia has, for the most part, managed to keep its nose clean.
Nokia Oyj was last rated for ESG on: 2019-01-01.
| Total ESG score | 10.79 |
|---|---|
| Total ESG percentile | 5.55 |
| Environmental score | 1.22 |
| Environmental score percentile | 2 |
| Social score | 7.74 |
| Social score percentile | 2 |
| Governance score | 3.76 |
| Governance score percentile | 2 |
| Level of controversy | 2 |
Dividend payout ratio: 42.86% of net profits
Recently Nokia has paid out, on average, around 42.86% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 3.8% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Nokia shareholders could enjoy a 3.8% return on their shares, in the form of dividend payments. In Nokia's case, that would currently equate to about €0.13 per share.
While Nokia's payout ratio might seem fairly standard, it's worth remembering that Nokia may be investing much of the rest of its net profits in future growth.
The latest dividend was paid out to all shareholders who bought their shares by 28 January 2024 (the "ex-dividend date").
Nokia's shares were split on a 4:1 basis on 9 April 2000. So if you had owned 1 share the day before the split, the next day you would own 4 shares. This wouldn't directly have changed the overall worth of your Nokia shares – just the quantity. However, indirectly, the new 75% lower share price could have impacted the market appetite for Nokia shares which in turn could have impacted Nokia's share price.
Over the last 12 months, Nokia's shares have ranged in value from as little as EUR€2.6731 up to EUR€3.8786. A popular way to gauge a stock's volatility is its "beta".
Beta measures a share's volatility in relation to the market. The market (HE average) beta is 1, while Nokia's is 0.704. This would suggest that Nokia's shares are less volatile than average (for this exchange).
Nokia Oyj provides mobile, fixed, and cloud network solutions worldwide. The company operates through four segments: Network Infrastructure, Mobile Networks, Cloud and Network Services, and Nokia Technologies. The company provides fixed networking solutions, such as fiber and copper-based access infrastructure, in-home Wi-Fi solutions, and cloud and virtualization services; IP networking solutions, including IP access, aggregation, and edge and core routing for residential, mobile, enterprise and cloud applications; optical networks solutions that provides optical transport networks for metro, regional, and long-haul applications, and subsea applications; and submarine networks for undersea cable transmission. It serves its products and services to communications service providers, webscales and hyperscalers, digital industries, and government. The company also offers mobile technology products and services for radio access networks and microwave radio links for transport networks, network management solutions, as well as network planning, optimization, network deployment, and technical support services. In addition, it offers cloud and network services, including core network solutions, such as voice and packet core; business applications, such as security, automation, and monetization; cloud and cognitive services; and enterprise solutions, including private wireless and industrial automation. Further, the company licenses intellectual property, including patents, technologies, and the Nokia brand. Nokia Oyj was founded in 1865 and is headquartered in Espoo, Finland.
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