Nokia Oyj (NOK): a potential bargain?

Buy — Nokia beat estimates and raised full-year profit guidance, but got dragged down by a sector-wide panic over rival Ericsson's chip-cost warning.

🔥 HOT Fundamentals55/100

Fell 25% in 11 trading day(s) — now $9.73

Why NOK dropped

The crash was triggered by Ericsson (a competitor) warning that AI-driven demand is causing a global memory chip shortage that will raise costs industry-wide; this triggered "contagion selling" across telecom equipment stocks, and Nokia's own Q2 report on July 23 — despite beating profit and revenue estimates and raising full-year guidance — still fell 5%+ because investors are worried the same memory cost pressure will squeeze Nokia's margins too.

Fwd P/E 19.8Op margin 7.9%Rev growth 8.4%Debt/equity 15.8%Analyst upside 55.8%

How this scored 55/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 3.5%

✅ Generates cash Free cash flow $1.2B

✅ Not drowning in debt Debt/equity 15.8% (limit 200%)

✅ Can pay its bills Current ratio 1.5 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 4/25

Operating margin 7.9% 3/9

Net profit margin 3.5% 1/8

Return on equity 3.5% 0/8

Growth Is it getting bigger, or dying? 12/25

Revenue growth 8.4% 4/9

Earnings growth -97.9% 0/8

Expected profit change 251.5% 8/8

Value Is it cheap right now? 19/25

Forward P/E 19.8 6/10

PEG ratio 1.0 6/8

Analyst target upside 55.8% 7/7

Balance sheet Will it survive? 20/25

Debt / equity 15.8% 10/10

Current ratio 1.5 3/8

Free cash flow $1.2B 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-07-24. Research only — not financial advice.