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Nokia Oyj (NYSE:NOK)
Piotroski F-Score
6 (As of Today)

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Nokia Oyj has an F-score of 6 indicating the company's financial situation is typical for a stable company.

NOK' s 10-Year Piotroski F-Score Range
Min: 2   Max: 9
Current: 6

2
9

During the past 13 years, the highest Piotroski F-Score of Nokia Oyj was 9. The lowest was 2. And the median was 6.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Net Income was -124.1473397 + -34.0599455041 + -330.110497238 + 3396.48173207 = $2,908 Mil.
Cash Flow from Operations was 12.278308322 + 72.2070844687 + -190.607734807 + 1069.01217862 = $963 Mil.
Revenue was 7724.420191 + -6130.79019074 + 3679.55801105 + 3981.05548038 = $9,254 Mil.
Gross Profit was 2448.84038199 + -267.029972752 + 1679.55801105 + 1751.01488498 = $5,612 Mil.
Average Total Assets from the begining of this year (Jun13)
to the end of this year (Jun14) was
(34747.382199 + 35592.0873124 + 34320.1634877 + 31462.7071823 + 28031.1231394) / 5 = $32,831 Mil.
Total Assets was $28,031 Mil.
Long-Term Debt was $3,294 Mil.
Total Current Assets was $19,742 Mil.
Total Current Liabilities was $11,143 Mil.
Net Income was -1243.83916991 + 252.659574468 + -354.628422425 + -295.811518325 = $-1,642 Mil.

Revenue was 9389.10505837 + -8956.11702128 + 4093.87222947 + 4129.58115183 = $8,656 Mil.
Gross Profit was 2582.36057069 + -328.457446809 + 1608.86571056 + 1799.7382199 = $5,663 Mil.
Average Total Assets from the begining of last year (Jun12)
to the end of last year (Jun13) was
(38468.0589681 + 38717.2503243 + 39872.3404255 + 37572.3598435 + 34747.382199) / 5 = $37,875 Mil.
Total Assets was $34,747 Mil.
Long-Term Debt was $4,418 Mil.
Total Current Assets was $23,404 Mil.
Total Current Liabilities was $17,211 Mil.

Profitability

Q1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

Nokia Oyj's current net income (ttm) was 2,908. ==> Positive ==> Score 1.

Q2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by average total assets throughout the year.

Score 1 if positive, 0 if negative.

Nokia Oyj's current cash flow from operations (ttm) was 963. ==> Positive ==> Score 1.

Q3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

ROA (This Year)=Net Income (TTM)/Average Total Assets from Jun13 to Jun14
=2908.16394963/32830.6926642
=0.08858065

ROA (Last Year)=Net Income (TTM)/Average Total Assets from Jun12 to Jun13
=-1641.61953619/37875.4783521
=-0.04334254

Nokia Oyj's return on assets of this year was 0.08858065. Nokia Oyj's return on assets of last year was -0.04334254. ==> This year is higher. ==> Score 1.

Q4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA =< ROA.

Nokia Oyj's current net income (ttm) was 2,908. Nokia Oyj's current cash flow from operations (ttm) was 963. ==> 963 =< 2,908 ==> CFROA =< ROA ==> Score 0.

Funding

Q5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun14)=Long-Term Debt/Total Assets
=3293.64005413/28031.1231394
=0.1174994

Gearing (Last Year: Jun13)=Long-Term Debt/Total Assets
=4417.53926702/34747.382199
=0.12713301

Nokia Oyj's gearing of this year was 0.1174994. Nokia Oyj's gearing of last year was 0.12713301. ==> This year is lower or equal to last year. ==> Score 1.

Q6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year'’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year: Jun14)=Total Current Assets/Total Current Liabilities
=19741.5426252/11143.4370771
=1.7715847

Current Ratio (Last Year: Jun13)=Total Current Assets/Total Current Liabilities
=23404.4502618/17210.7329843
=1.35987528

Nokia Oyj's current ratio of this year was 1.7715847. Nokia Oyj's current ratio of last year was 1.35987528. ==> This year's current ratio is higher. ==> Score 1.

Q7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Nokia Oyj's number of shares in issue this year was 4120.4. Nokia Oyj's number of shares in issue last year was 3712.2. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Q8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=5612.38330527/9254.24349169
=0.60646592

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=5662.50705433/8656.44141839
=0.65413797

Nokia Oyj's gross margin of this year was 0.60646592. Nokia Oyj's gross margin of last year was 0.65413797. ==> Last year's gross margin is higher ==> Score 0.

Q9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by average total assets throughout the year) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue (TTM)/Average Total Assets from Jun13 to Jun14
=9254.24349169/32830.6926642
=0.2818778

Asset Turnover (Last Year)=Revenue (TTM)/Average Total Assets from Jun12 to Jun13
=8656.44141839/37875.4783521
=0.22855002

Nokia Oyj's asset turnover of this year was 0.2818778. Nokia Oyj's asset turnover of last year was 0.22855002. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score=Q1+Q2+Q3+Q4+Q5+Q6+Q7+Q8+Q9
=1+1+1+0+1+1+0+0+1
=6

Good or high score = 8 or 9

Bad or low score = 0 or 1

Nokia Oyj has an F-score of 6 indicating the company's financial situation is typical for a stable company.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities, Altman Z-Score, Beneish M-Score


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Nokia Oyj Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Q1 1111111000
Q2 1111111101
Q3 0011001001
Q4 1111011111
Q5 0000001001
Q6 1000010010
Q7 1111111100
Q8 0001100011
Q9 0111000000
F-score 5567456335

Nokia Oyj Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
Q1 0000000001
Q2 1111111101
Q3 0000111111
Q4 1111111110
Q5 0000000101
Q6 0001010011
Q7 1000000000
Q8 0001111110
Q9 0000000111
F-score 3224454656
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