Quick Facts
- Nokia is a Finnish leader in communications and networking equipment production.
- One of the latest additions to our Europe Value Wikifolio.
Pros
- Market Leader: Nokia holds a strong position in the critical network infrastructure market, benefiting from the global expansion of 5G networks. ✔
- Diversification: Investing in Nokia can diversify a portfolio, reducing overall risk. ✔
- Dividend Payout: Nokia has a history of paying dividends, providing investors with regular income. ✔
Cons
- Competitive Industry: The network equipment market is highly competitive, with strong rivals like Ericsson and Huawei. ❌
- Economic Sensitivity: Nokia's business is cyclical and can be impacted by economic downturns. ❌
- Technological Risk: The rapid pace of technological advancement in the telecom industry could pose challenges. ❌
Obermatt Ranks
 360° View | 92 |  | |
 Sentiment Rank | 55 |  | |
 Value Rank | 96 | | |
 Growth Rank | 54 | | |
 Safety Rank | 75 | | |
 Combined Rank | 100 | |
We're excited to announce a strategic addition to our Europe Value Wikifolio: the Finnish communications and networking equipment producer, Nokia. Alongside our Obermatt Swiss Pearls Index, we continue to maintain our Wikifolios.
Do individual stock purchases and maintaining your stock portfolio take too much of your free time? Check out the first financial product based exclusively on the Obermatt 360° View: Obermatt Swiss Pearls Index.
Nokia, once a dominant force in mobile phones, has successfully reinvented itself as a global leader in network infrastructure and communications equipment. Experts cited Nokia as a prime example of a company that overcame major setbacks. They rose to prominence with their mobile phones, lost nearly all market share to smartphones, then reinvented themselves by focusing only on network infrastructure and communications equipment.
Obermatt's analysis gives Nokia an impressive Obermatt 360° View score of 92, with a perfect Combined score of 100. A Value score of 96 suggests fair pricing, making Nokia an attractive investment opportunity. Also, what better to do in a market correction than invest more?
While the critical network infrastructure market is highly competitive with the likes of Ericsson and even Chinese Huawei and ZTE, Nokia holds its strong position, benefiting from the global expansion of 5G networks.
Nokia’s strong Dividend Yield rank of 94 reflects its yearly dividend yield of 3.75% and regular payouts, also adding a plus to our decision. They are also currently carrying out its share buyback program, which will return up to EUR 600 million of cash to shareholders over a period of two years and has recently accelerated it for this year.