Nokia Corporation Sponsored American Depositary Shares (NOK)

FairStock Score: 34/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the close on 2026-10-13, Nokia sells for $9.86, giving a $57.7B market value. On FairStock's numbers, that is 70.43 times earnings, 2.26 times book, and an EV/EBITDA of 27.91. In fiscal Q2 2026, revenue was $4.8B but net income was just $2.0M, a 0.04% margin. That tells me the business is not converting scale into owner earnings. ROE of 3.45% and ROCE of 3.12% are far below what I want from a durable competitive advantage. Free cash flow is positive at $536.0M, but against the market cap that is only a 0.9% FCF yield. The Graham Number is $3.46, so the price carries roughly a 185% negative margin of safety. The FairStock Score is 24/100, reinforcing the weak picture. The balance sheet is a relative bright spot: debt-to-equity is 0.16 and beta is 0.77. Yet Piotroski is 3/9 and Altman is 2.51, which do not signal a fortress. Nokia has global reach across Network Infrastructure, Mobile Networks, Cloud and Network Services, and Nokia Technologies, with 78,005 employees. Scale matters in communication equipment, but it has not produced high returns. The dividend yield is only 1.53%. FairStock assigns no Lynch category because only 0 years of filed results are available and 3 are needed. I prefer consistent earners bought at a discount. Here, the price already assumes a sharp recovery. Unless net income and cash flow improve materially, this looks expensive rather than cheap.

In plain English: Nokia makes equipment and software that help phone and internet networks operate. In its fiscal Q2 2026 report, the company had $4.8B of revenue but only $2.0M of net income, so the business looks weak on profits and returns. At the recent price of $9.86, the shares look expensive compared with those weak profits and the company's accounting value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer