Rankings Tech hardware & optics Nokia

Nokia

Tech hardware & optics · FinlandRank 485 of 829Prices 3 Nov 2026Model 1.4

A good business with a real question mark: the price, a crack, or both.

Biggest deductions

  • Multiples vs own history−18
  • Peers−6
  • Margin−4

Strengths

  • Order intake in growth segment+2
  • Net cash+1

How the score is built

From 100 to 55, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.

100Start
55Score

Hover or select a step to see what drove it. Steps with findings open them below.

Key numbers

As of 3 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.

Price
7.56 EUR
Median analyst target
10.20 EUR
Upside to median
+34.9%
Analysts
23
Target range
4.65 – 18.00 EUR
52-week change
+27%
P/E (trailing)
55.2
Forward P/E
18.6
PEG
0.77

Findings

Every deduction and every plus, with its source. Open a step to read them.

Business

Is the company getting stronger, not just bigger? · 5 findings
−15 of −30
  • Margin
    Operating margin 9.0% and net margin 3.5% (TTM) vs 12.0% and 6.6% in 2024; FCF margin only 2.6%. Comparable operating margin of 9.0% in Q2.
    −4
  • ROIC
    ROIC 6.4% (TTM), below a WACC of 8.2%; down from 16.7% in 2022 and 10.7% in 2024. ROE only 3.5%.
    −4
  • Quality of growth
    Revenue fell from EUR 23.8bn (2022) to 19.9bn (2025); TTM growth of 7% is partly bought through Infinera (closed 2025). Nokia Technologies (patent licensing) fell from EUR 1.93bn to 1.50bn in 2025.
    −3
  • Future segment
    Mobile Networks (RAN) is still about 40% of revenue and fell from EUR 10.7bn to 7.8bn in 2022–2025 in a RAN market that shrank from USD 45bn to 35bn. AI-RAN only reaches volume in 2028.
    −2
  • Capital allocation
    Infinera bought for USD 2.3bn; the dividend is 118% of earnings and 147% of FCF, while the share count rose 2.8% in a year (including the Nvidia share issue).
    −2

Price

Today's multiples against the company's own history and its peers. · 2 findings
−24 of −35
  • Multiples vs own history
    P/E 77 (TTM) and forward P/E 23 vs 9–18 forward in 2021–2025; EV/EBITDA 17.5 vs 5.3–12.2; P/S 2.5 vs 0.8–1.6; P/FCF 96 vs 11–28. The multiples are 1.5–3 times higher than in any of the last five years.
    −18
  • Peers
    Forward P/E 23 and EV/EBITDA 17.5 for a company with 5–7% expected growth and ROIC below its cost of capital; its closest peer Ericsson trades much lower, and only pure optical companies with far higher growth trade above.
    −6

Cracks

Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 4 findings
−14 of −35
  • Execution and restructuring
    Restructuring costs for 2026 raised from EUR 250m to 800m (China JV and more cuts in Europe); a large job programme continues in Mobile Infrastructure.
    −4
  • Cash flow
    Free cash flow −EUR 732m in Q2 and only 535m TTM (vs 2.0bn in 2024); FCF conversion is expected at the bottom of 55–75%. Net cash fell from EUR 3.6bn to 1.8bn in eighteen months.
    −4
  • Supply chain and costs
    Shortages of memory chips and indium phosphide wafers; new capacity only in 2029. Rising chip prices squeeze the margin, and customers are ordering earlier because of shortages (risk of pulled-forward demand).
    −3
  • Customer behaviour
    Management itself calls the AI & Cloud order book 'lumpy', and it is concentrated on a few hyperscalers; telecom operators' spending remains subdued. Q3 is expected flat vs Q2.
    −3

Plus

Only documented strengths. · 2 findings
+3 of +15
  • Net cash
    Net cash EUR 1.77bn and debt/EBITDA 1.2; Piotroski score 8.
    +1
  • Order intake in growth segment
    Sales to AI & Cloud customers more than doubled to EUR 446m in Q2, and IP/optical order intake from AI & Cloud reached EUR 2.8bn; optical +20%, IP +16%.
    +2

Caveats

What the score does not capture, or where the data is weak.
The price has risen 123% in one year on the AI/optics story; earnings have not kept pace (P/E 77 TTM). Restructuring costs of EUR 800m in 2026 distort reported results

Also in Tech hardware & optics

The highest scores in the same industry.

Whole industry