Nokian Tyres (MIL:1TYRES) Financial Strength: 5 (As of Jun. 2026) — 25% Above Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

MIL:1TYRES Nokian Tyres PLC MIL:1TYRES
36 GF Score
Price €15.22
GF Value €9.60
Valuation Significantly Overvalued
! 12 Warning Signs
View Full Analysis

What is Nokian Tyres Financial Strength?

Nokian Tyres MIL:1TYRES 36 Financial Strength is 5 as of Jun. 2026, which is 25% above its 10-year median of 4.00. GuruFocus rates MIL:1TYRES with a GF Score™ of 36/100 and a GF Value™ of €9.60 (Significantly Overvalued). The stock has 12 warning signs investors should review.

Nokian Tyres has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Nokian Tyres's Interest Coverage for the quarter that ended in Jun. 2026 was 3.78. Nokian Tyres's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.59. As of today, Nokian Tyres's Altman Z-Score is 2.36.


Nokian Tyres  (MIL:1TYRES) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Nokian Tyres has the Financial Strength Rank of 5.


Nokian Tyres Financial Strength Related Terms


MIL:1TYRES vs ORLY, AZO, GPC: Financial Strength Comparison

For the Auto Parts subindustry, Nokian Tyres's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Nokian Tyres Financial Strength vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Nokian Tyres's Financial Strength distribution charts can be found below:

* The bar in red indicates where Nokian Tyres's Financial Strength falls into.


MIL:1TYRES
36GF Score
Nokian Tyres PLC MIL:1TYRES
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Nokian Tyres Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Nokian Tyres's Interest Expense for the months ended in Jun. 2026 was €-9 Mil. Its Operating Income for the months ended in Jun. 2026 was €35 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was €706 Mil.

Nokian Tyres's Interest Coverage for the quarter that ended in Jun. 2026 is

Interest Coverage=-1*Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*34.8/-9.2
=3.78

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Nokian Tyres's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(197 + 705.9) / 1519.6
=0.59

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Nokian Tyres has a Z-score of 2.36, indicating it is in Grey Zones. This implies that Nokian Tyres is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.36 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 5 mean?
Nokian Tyres (MIL:1TYRES) has a Financial Strength of 5 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Nokian Tyres and its competitors. This is 25% above median its historical median of 4.00. Over the past decade, Nokian Tyres' Financial Strength has ranged from 3.00 to 6.00.
Is Nokian Tyres' Financial Strength too high?
Nokian Tyres' current Financial Strength of 5 is 25% above median its 10-year median of 4.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 6.00. Overall, Nokian Tyres has a GF Score™ of 36/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nokian Tyres' Financial Strength compare to ORLY and AZO?
Nokian Tyres' Financial Strength of 5 can be compared against companies in the Vehicles & Parts industry. Historically, Nokian Tyres' own Financial Strength has ranged from 3.00 to 6.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Vehicles & Parts company?
A good Financial Strength depends on the Vehicles & Parts industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Nokian Tyres and its competitors. Nokian Tyres's current Financial Strength is 5, which is 25% above median its own 10-year median of 4.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nokian Tyres stock overvalued right now?
Based on GuruFocus' analysis, Nokian Tyres (MIL:1TYRES) is currently considered Significantly Overvalued. The stock's GF Value™ is €9.60, compared to a current price of €15.22 — trading 58.5% above its estimated fair value. The current Financial Strength is 5, which is 25% above median its 10-year median of 4.00. Nokian Tyres' overall GF Score™ is 36/100 with 12 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Nokian Tyres (MIL:1TYRES), the current Financial Strength is 5 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Nokian Tyres (MIL:1TYRES) Overvalued in 2026?

Based on GuruFocus' analysis, Nokian Tyres stock appears to be overvalued. The current stock price of €15.22 is trading 58.5% above its estimated GF Value™ of €9.60. GuruFocus considers Nokian Tyres to be Significantly Overvalued.

Key valuation signals for MIL:1TYRES:

  • Financial Strength: 5 (25% above median its 10-year median of 4.00)
  • GF Value™: €9.60 vs. price of €15.22 (58.5% above fair value)
  • GF Score™: 36/100 with 12 warning signs

No single metric tells the full story. See the MIL:1TYRES stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Nokian Tyres Business Description

Address Pirkkalaistie 7, P.O. Box 20, Nokia, FIN, 37101
Nokian Tyres PLC develops and manufactures rubber tires under the Nokian Tyres brand name for passenger cars, vans, trucks and heavy machinery. The company sells tires to wholesale distributors and through company-owned retail stores, which are operated under the Vianor brand name. The firm organizes itself into three segments based on product and distribution type: Passenger Car Tyres, Heavy Tyres and Vianor. The Passenger car tyres segment generates the majority of revenue.
36GF Score

Get the complete analysis for MIL:1TYRES

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€15.22
Price
€9.60
GF Value