Nokia Oyj (NOK, Financial) has experienced a notable uptick in its stock price, with a 9.51% gain over the past week, bringing the price to $3.8. Despite a recent 18.38% loss over the past three months, the current GF Value of $4.77 suggests that the stock is modestly undervalued. This is a positive shift from the previous GF Value of $5.36, which indicated a possible value trap. With a market capitalization of $21.04 billion, Nokia's recent performance has caught the attention of investors looking for value opportunities.
Understanding Nokia Oyj's Business
Nokia Oyj, a stalwart in the hardware industry, is a key player in providing telecom equipment and services essential for wireless and fixed-line networks. The company operates across four segments, with its mobile networks and network infrastructure segments being the most significant. Nokia's cloud and network services cater to enterprises with as-a-service platforms, while its research division and patent business license technology to various electronic and IoT product manufacturers. 
Profitability Insights
Nokia's Profitability Rank stands at 6/10, indicating above-average profitability within the industry. The company's operating margin of 9.05% is higher than 73.06% of its peers. Additionally, Nokia's ROE of 18.44% and ROA of 9.24% outperform 88.54% and 87.49% of competitors, respectively. The ROIC of 15.16% also surpasses 84.37% of similar companies. With five years of profitability over the past decade, Nokia is ahead of 28.58% of the industry. 
Growth Trajectory
The company's Growth Rank is 6/10, reflecting steady growth. Nokia's 3-year revenue growth rate per share of 2.30% outpaces 42.63% of the industry, and its 5-year rate of 0.80% exceeds 42.07% of the sector. The total revenue growth rate estimate for the next 3 to 5 years is 0.40%, better than 18.11% of the market. Notably, the 3-year EPS without NRI growth rate is an impressive 235.90%, significantly higher than 99.24% of peers. However, the estimated EPS growth rate for the next 3 to 5 years is -13.93%, which is still better than 1.47% of the industry. 
Top Shareholders
Richard Pzena (Trades, Portfolio) is the leading shareholder with 42,791,256 shares, representing a 0.77% stake in the company. Following him is Jim Simons (Trades, Portfolio), holding 5,825,600 shares (0.11% share percentage), and Steven Cohen (Trades, Portfolio) with 3,289,600 shares (0.06% share percentage). These significant shareholders reflect confidence in Nokia's market position and future prospects.
Competitive Landscape
When compared to its competitors, Nokia Oyj stands out with its substantial market cap of $21.04 billion. In contrast, Bittium Corp (OHEL:BITTI, Financial) has a market cap of $182.605 million, and Teleste Oyj (OHEL:TLT1V, Financial) has a market cap of $53.516 million. A major competitor, Cisco Systems Inc (CSCO, Financial), has a market cap of $212.64 billion, showcasing the varied scale of companies within the hardware industry.
Conclusion
In summary, Nokia Oyj's current stock performance and valuation indicate a modest undervaluation, with recent gains suggesting a positive market sentiment. The company's profitability and growth metrics demonstrate its competitive edge in the industry. Significant shareholders maintain a substantial interest in Nokia, reflecting confidence in its long-term value. Compared to its competitors, Nokia holds a strong market position, with the potential for continued growth and profitability. Investors may find Nokia an attractive option for their portfolios, considering its current valuation and market dynamics.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
