NOKIA

Analysis of Nokia share price

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Nokia's market cap, dividends, sales and earnings in 2020

29/10/2021 - 09h12

The Finnish group Nokia had a difficult year in 2020. The telecoms giant's annual results were less strong for the year as a whole.

Elements that can influence the price of this asset:

Analysis N°1

First of all, you should know that the value of Nokia is very sensible to the news of some of its competitors. So you should carefully monitor the statements of companies such as Vodafone, Ericsson and AT&T.

Analysis N°2

The various strategic plans developed by Nokia, which can be compared with the company's actual results, will also be closely monitored to anticipate future trends in this value.

Analysis N°3

Other recent partnerships should also be carefully monitored in order to estimate the profitability of said partnerships. This applies particularly to the partnerships with Samsung electronics as well as for that signed for the creation of the joint venture with the Chinese company Shangai Bell.

Analysis N°4

Finally, and as we just saw above, it is important to keep an eye on the future relationship between Nokia and other companies or with certain investors and on the eventual decisions that could arise in particular concerning the management of certain specific activities of the group considered as not so profitable.

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General presentation of Nokia

Nokia is a company specialized on the design, fabrication and sale of mobile phone equipment. Its activity is varied and comprises the sale of mobile phones and smartphones, multimedia products and software, but also the management of telecommunication networks and the sale of various mapping devices.

Most of its turnover is generated in Japan but also in Europe, Asia and the United States.

Analysis of Nokia share price
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The major competitors of Nokia

A good knowledge of the environment in which the Nokia Group operates is of course essential if you want to carry out a good analysis of this stock's price. This is why we are now proposing to discover its main competitors on the current market.

Siemens

First of all, the Siemens group is an international group of German origin which is a specialist in the energy, health, industry, building and electronics sectors. It is currently the largest private employer in Germany and also the largest engineering company in Europe in terms of employees.

Samsung Electronics 

This second competitor of Nokia is a Korean company specialising in the manufacture of electronic products. It is a subsidiary of the Samsung Group, which is one of the major Korean chaebols. The company currently employs more than 308,745 people and is the 13th largest company in the world according to Forbes magazine. In terms of turnover, it is also the second largest high-tech company in the world, just behind the Apple Group but ahead of Microsoft and IBM.

Sony Corporation

This company, listed on the NYSE and the Tokyo Stock Exchange, is a Japanese multinational company based near Tokyo. It specialises in various fields, including electronics, telephony, computers, video games, music, cinema and audiovisuals.

SAGEM

The SAGEM group, which stands for Société d'Applications Générales d'Electricité et de Mécanique, was once a French company created in 1925 and dissolved in 2005. It worked exclusively in the mechanical sector, manufacturing tools and machine tools. The company then moved into electronics and its two flagship products, teletypewriters, then fax machines and then inertial units, enabled it to become a large international company. Today, the group also develops military and aeronautical applications and merged with Snecma in 2005 to form the Safran group.

Apple 

Of course, the giant Apple is also a direct competitor of Nokia. This American multinational company specialises in the development and marketing of electronic products, personal computers and software. The company currently employs 137,000 people and owns and operates more than 506 Apple Stores in 25 countries around the world, as well as an online shop selling Apple devices and software and third-party products.

Huawei

Finally, the last serious competitor to Nokia at the moment is the Huawei Group which is officially known as Huawei Technologies Co Ltd. This company was founded in 1987 and is nowadays headquartered in Shenzhen, China. The group provides solutions in the information and communication technology sector and has become one of the leaders in the mobile phone sector in recent years.


The major partners of Nokia

During the last years, Nokia has attracted several large companies with which it has established strategic partnerships.

Tencent

In 2019, the Nokia group also signed a partnership with this Chinese company with the aim of combining their research and development forces and developing new applications accessible through 5G.

Iliad

Also in 2019, Nokia has partnered with Iliad to roll out the 5G network in France and Italy from 2020.

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The factors in favour of a rise in the Nokia share price:

As an investor, you must probably be asking yourself what are the advantages of Nokia shares which could push you to choose this value instead of others to trade online. We invite you therefore to find out more in detail here the strengths and the advantages of this companies in the years to come.

The first thing to mention about Nokia’s shares is that its issuing companies has an interesting positioning on the market of telecoms. In fact, after its fusion with Alcatel-Lucent, Nokia has succeeded in exploiting its positioning among the three leaders of this market internationally which has given a certain security to this title.

Nokia also has an undeniable advantage concerning its geographical presence in the world. Always thanks to its fusion with Alcatel-Lucent, the new group has a strong international coverage and an excellent distribution in the different major economic zones of the world. Nokia is particularly well represented in North America where it generates more than 31% of its turnover, it reaches the highly coveted Chinese market too with more than 15% of its turnover coming from this country. Of course, the company is also well represented in the European market with 21% of its turnover coming from the European Union and finally, the Asia-Pacific market is not left behind since it counts for 18% of the company’s turnover.

In addition to being one of the top 3 in the market of telecommunication in the world, Nokia has established itself as a leader in many very specific sectors, enabling it to build its reputation and strengthen its image as a specialist. Also, Nokia is currently the world leader in the sector of broadband access in ADSL and FTTx. It is also the international leader in the production of optical transmission technologies, the integration of triple-play/IPT and is strategically positioned in the domain of fixed and mobile networks and even if It is not number one in this sector. There are also other highly coveted sectors on which Nokia has position itself among the largest players such as in the sector of Ip routing, DWDM optics, core routers or still the applications and services associated to the cloud.

Of course, Nokia does not count with its acquisitions to guarantee its future results and remains before anything a company focused on technological innovation. We need, in fact to underline the strong innovative capacity of this group which has invested nearly 5 billion of dollars in R and D. The goals of this company in terms of research concerns in this moment mainly the 5G network which is the objective of very strong competition from the part of all player of telecom. But the group orients its development also towards other domains which are also varied such as the virtual network, the cloud, the analysis of network data, the captors and high quality imagery with so many possibilities to surprise the public with profitable innovations.

Nokia also counts already with a profile of patens whose value is more than 8 billion euros and beneficiates of partnership contracts about the sale of terminals with the giants of telecom such as LG or even Samsung which guarantees comfortable revenues.

Of course, Nokia does not intend to be content with its achievements to guarantee its future results and remains above all a company focused on technological innovation. It is necessary to underline the strong capacity of innovation of this group which invests nearly 5 billion dollars in R & D. The company's objectives in terms of research currently concern mainly the 5G network, which is subject to fierce competition from all telecom players. But the group also focuses its developments in other areas as diverse as virtualized networks, cloud, network data analysis, sensors or advanced imaging with as many opportunities to surprise the public with profitable innovations.

Nokia also has a portfolio of patents with a value of more than 8 billion euros and benefits from partnership agreements on the sale of terminals with telecom giants such as LG or Samsung which guarantee a comfortable income.

Finally, for investors, Nokia offers the advantage of regularly making returns in the form of repurchases of shares that prove particularly profitable.

The factors in favour of a drop in the Nokia share price:

As we have just seen, Nokia’s shares offer many advantages for investors and is a rather safe value to invest on in the years to come. But of course, this title does not only have strength, it has some weaknesses as well, which are important to know before you embark in the online speculation of this asset. Here is therefore the summary of the main disadvantages of this value.

Nokia has first of all a weak point concerning the future of some of its activities such as mobile phones. In fact, the current economic news of this company has recently shown that some investors that have tried to come close to this group focus their strategies towards a resale of the branch of mobile phones of the group which they considered as being too small and not profitable enough compared to its competitors and other activities of the group. This feeling also concerned the convertibles.

Some investors who use bank investment products to invest in Nokia stocks may also be disappointed with the end of the eligibility of this title to the SRD. This is due to the relocation of the company's headquarters to Finland after the creation of the new group Nokia corporation, which slightly legally modified the use of securities in Europe and France in particular.

It should also be noticed that the addressable network market remains a rather complex and difficult sector of activity since the year 2016 and that the mobile market shows a certain stability but also a lack of possibilities for positive evolution. To these uncertainties are added other doubts, particularly regarding the new Finnish management of the group that could significantly alter the long-term strategy of the company. This is expected to include a reduction in the company's workforce internationally as well as other decisions that could worry investors or slow down positions for purchase.

In addition, while Nokia has always been generous with its shareholders, it should be noticed that the Alcatel-Lucent group with which it recently joint ventures does not have the same benefits in terms of redistribution. In fact, the latter has not paid dividends to its shareholders since 2006, which could affect new shareholders.

Finally, it is important to know that Nokia has received a recent warning about its margin and turnover in 2017, which resulted, as you can see in the historical charts, a strong negative reaction on the market at the end of this year.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

Who are the major shareholders of the Nokia Group?

The major current shareholders of the Nokia Group are as follows: 3.65% of the share capital are owned by Solidium Oy, 2.86% by The Vanguard Group, 2.35% by Norges Bank Investment Management, 2.24% by Fidelity Management & Research, 2.01% by Invesco Advisers, 1.65% by Capital Research & Management, 1.56% by BNP Paribas Asset Management France, 1.39% by Capital Research & Management Global Investors, 1.34% by Lyxor International Management and 1.33% by Amundi Asset Management SA.

On which financial marketplaces are Nokia shares quoted?

The Nokia share price is currently quoted on several financial marketplaces as follows:

  • The OMX stock exchange which is the historical stock market in Northern Europe.
  • The New York Stock Exchange which is the largest financial marketplace in the world.
  • The Frankfurt stock exchange which is one of the major German stock markets.
  • And finally Euronext which is the largest European financial marketplace at present.

Where can you find the Nokia share price?

If you plan to follow the share price of Nokia in real time to speculate later on the movements in this asset then you simply need to access the stock market charts in real time. You can in fact follow this asset price on the Euronext stock market from the vast majority of specialised websites or directly on your chosen trading platform, with the opportunity to also consult charts with different time line periods as well as the historical prices of this share since its introduction onto the stock markets up to now.

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