Key Takeaways
- Quality: free cash flow of $1.4B exceeds implied net income, but the net margin is only 3.8% against a 10.8% operating margin.
- Growth: TTM revenue is up 9.7% after a -7.2% five-year CAGR, and the 222.1% earnings growth comes off a very small base.
- Opportunity: a P/E of 53.25 and a 100.2% payout ratio temper a 1.6% yield, giving an Opportunity Score of 48/100.
This Nokia Corporation stock analysis centers on a company in recovery. TTM earnings growth is 222.1% and revenue is up 9.7% to $23.3B, yet the net margin is only 3.8% and the dividend payout ratio is 100.2%. At $8.52, the telecom equipment maker is a turnaround story whose numbers are improving from a low base.
What Is Happening With the Stock Price
The ADR trades at $8.52, against a two-year low of $4.05 and a two-year high of $15.47. That sits in the middle of its two-year range, slightly toward the lower side of it, more than double the low but about 45% under the high. The market capitalization is $47.70B. The price shows the market has recognized some of the improvement without fully committing to it.
Quality: Is This a Financially Sound Business?
Profitability is modest. Gross margin is 45.4% and operating margin is 10.8%, but net margin is 3.8%. Net margin sitting well below operating margin means costs below the operating line, such as taxes and financing costs, take a large share of operating profit. Return on equity is 3.9% and return on assets is 3.5%.
Cash flow is better than earnings. Free cash flow of $1.4B is above the net income of roughly $0.9B implied by the margin and revenue, and the FCF yield is 3.0%. In this Nokia Corporation stock analysis, that is a point in the company’s favor, though one year of cash flow does not make a trend.
The balance sheet is sound, with debt-to-equity of 0.16, a current ratio of 1.46 and a quick ratio of 1.18. The Quality Score is 53 out of 100.
Growth: Does This Company Have Real Upside?
The longer record is weak. Five-year revenue CAGR is -7.2%, while TTM revenue growth is 9.7%, so the latest year is a reversal rather than a long run of expansion. The 222.1% jump in earnings growth is flattered by a very small earnings base, with EPS of just $0.16, and should not be read as a run rate. EV/Revenue is 2.18. The Growth Score is 37 out of 100, the weakest of the three pillars.
Opportunity: Is Now a Good Time to Enter?
Valuation is mixed. The P/E of 53.25 is high because earnings are depressed, while EV/EBITDA of 16.49 and price-to-book of 2.02 are more moderate. The dividend yield is 1.6%, but the payout ratio of 100.2% means the whole of earnings is paid out, which leaves little cushion if profits slip. The Opportunity Score is 48 out of 100.
The bull case is that the earnings recovery continues and revenue growth holds. The bear case is that the five-year pattern of shrinking revenue returns, in a business exposed to the spending cycles of telecom operators, and that the dividend comes under pressure.
Nokia Corporation Stock Analysis: The Bottom Line
Nokia pairs a sound balance sheet and positive cash flow with thin net margins, a weak five-year growth record and a fully paid-out dividend. StreetBriefs’ quantitative model combines the three pillars into a Recommendation Score of 46 out of 100 and a Hold signal, a data-driven starting point for further research rather than a personalized recommendation to transact. The main things to watch are whether revenue growth continues, whether net margin moves closer to the operating margin, and whether the payout ratio falls below 100%. All equities carry risk, and turnaround stories can stall.
Financial Metrics Summary
| Metric | Value |
|---|---|
| Price & Valuation | |
| Current Price | $8.52 |
| 2-Year Low | $4.05 |
| 2-Year High | $15.47 |
| Market Cap | $47.70B |
| P/E Ratio | 53.25 |
| EV / Revenue | 2.18 |
| Our Scores | |
| Quality Score | 53 / 100 |
| Growth Score | 37 / 100 |
| Opportunity Score | 48 / 100 |
| Profitability | |
| Earnings Per Share | $0.16 |
| Return on Assets | 3.5% |
| Return on Equity | 3.9% |
| Net Profit Margin | 3.8% |
| Gross Margin | 45.4% |
| Operating Margin | 10.8% |
| Growth | |
| Revenue Growth (5Y CAGR) | -7.2% |
| Revenue Growth (TTM) | 9.7% |
| Earnings Growth (TTM) | 222.1% |
| Balance Sheet | |
| Debt-to-Equity | 0.16 |
| Current Ratio | 1.46 |
| Quick Ratio | 1.18 |
| Income & Dividends | |
| Dividend Yield | 1.6% |
| Payout Ratio | 100.2% |
Data as of November 04, 2026
Our Three-Pillar Assessment
| Quality |
53/100 |
| Growth |
37/100 |
| Opportunity |
48/100 |
Quality measures business fundamentals: profitability, cash flow discipline, and balance sheet strength.
Growth captures revenue momentum, gross margin scalability, and the Rule of 40 efficiency test.
Opportunity signals entry timing: current valuation versus history and price position in the 2-year range.
Current price: $8.52 trading 45% below its 2-year high of $15.47.
Keep researching NOK
Follow NOK’s scores in Qubits Finance
The Quality, Growth and Opportunity scores above come from the same model that powers the Qubits Finance screener. Compare NOK with its peers, keep it on a watchlist, and see when its scores change. There, the model’s Buy, Hold and Sell signals read Positive, Neutral and Caution.
See NOK in the screener →What Qubits Finance offers
The screener is on the free plan; accounts are approved by a person during the private beta. Research tools and information only: Qubits Finance does not place trades or make personal recommendations. Want a stock we have not covered? Request an analysis.
This analysis is done using financial data from Yahoo Finance.
Always conduct your own due diligence and consult a qualified financial advisor before making investment decisions.
