Nokia Oyj shares are trading close to a major technical resistance, which, if broken, could yield new upside potential and an increase in volatility. This scenario can be anticipated.
Summary
● The company has a poor ESG score according to MSCI, which ranks companies by sector.
Strengths
● The earnings growth currently anticipated by analysts for the coming years is particularly strong.
● The company is in a robust financial situation considering its net cash and margin position.
● Over the past four months, analysts' average price target has been revised upwards significantly.
● Analyst opinion has improved significantly over the past four months.
Weaknesses
● As estimated by analysts, this group is among those businesses with the lowest growth prospects.
● For the last twelve months, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
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Nokia Oyj specializes in the design, production and marketing of telecommunications equipment. Net sales break down by activity as follows:
- development of mobile broadband network solutions (40.2%): aimed in particular at telecommunications operators. In addition, the group offers professional services (network planning and optimization, systems integration, installation, implementation and maintenance of telecom networks);
- development of network infrastructure solutions (33.9%): IP routers and optical networking solutions.
- software development (15.7%): software for customer experience management, network operations and management, communication, collaboration and billing, IoT solutions and cloud management platforms;
- development of advanced technology (10%);
- other (0.2%).
Net sales are distributed geographically as follows: Europe (33.1%), North America (28%), India (7.1%), China (5.9%), Asia/Pacific (10.6%), Middle East and Africa (10.6%) and Latin America (4.7%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Global Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Global Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite), and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of the rankings based on the following ratings: Capital Efficiency (Composite), Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
