Nokia: Market situation forces to defensive positions
By Atte Riikola
Nokia's market situation has continued to deteriorate, and the company will have to make significant cost savings in the coming years to defend its profitability. With a declining earnings trend, it is difficult to see any material upside to the share's low valuation multiples and future restructuring costs will erode free cash flow in the coming years. The company should still be able to generate a reasonably good cash flow in the coming years, which will be returned to shareholders. However, relying on this alone does not provide a sufficiently attractive expected return.
Nokia is a global telecommunications company. The company offers solutions in IP, broadband, digital health, and cloud-based systems. The customers are found in a broad base of markets and consist of large corporate customers, authorities, and private consumers. The business is established on a global level in all regions. Nokia was founded in 1865 and the head office is located in Esbo, Finland.
Read more on company pageKey Estimate Figures2023-10-19
| 2022 | 23e | 24e | |
|---|---|---|---|
| Revenue | 24,911.0 | 23,214.5 | 22,403.5 |
| growth-% | 12.2 % | -6.8 % | -3.5 % |
| EBIT (adj.) | 3,109.0 | 2,723.8 | 2,522.7 |
| EBIT-% (adj.) | 12.5 % | 11.7 % | 11.3 % |
| EPS (adj.) | 0.44 | 0.35 | 0.33 |
| Dividend | 0.12 | 0.16 | 0.18 |
| Dividend % | 2.8 % | 3.0 % | 3.4 % |
| P/E (adj.) | 9.9 | 15.2 | 15.9 |
| EV/EBITDA | 6.2 | 8.2 | 9.6 |
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