The Nokia Corporation is a multinational telecommunications, information technology, and consumer electronics company headquartered in Espoo, Finland. Its roots, however, are in the region of Pirkanmaa, near the city of Tampere. The company makes a variety of products, from phones to televisions.
The company’s mobile network equipment business accounts for 2.6 billion euros of revenue and is driving its future growth prospects. The company recently won a major 5G contract in Norway, where it beat out Ericsson and Huawei. In addition, the company is gaining market share in Scandinavia. This should be good news for Nokia stock.
Nokia’s revenues and operating profit have increased by over 10% from the same quarter last year. The company has also increased its dividends by 14% to encourage investors. Despite the recent weakening in Nokia stock, the company’s fundamentals remain solid. The company’s recent Q2 ’22 earnings showed a significant increase in revenue, which rose from $5.33 billion in Q1 ’21 to $5.73 billion in Q2 ’22. Meanwhile, COGS and other operating expenses rose only slightly, which increased its EBIT margin from 9.1 percent to 9.6 percent.
Despite the underlying fundamentals, Nokia’s stock is still cheap compared to similar companies. Its low valuation makes it a good investment for those who are concerned about the company’s future. However, investors should consider other stock options, such as Ericsson or Cisco Systems.