Buffett Brain · Research note
Score updated 27 Oct 2026 · analysis from 20 Jun 2026
NOK· Technology
Nokia Oyj
Nokia's low ROIC of 2.7% and high P/E of 67.7 indicate a lack of competitive strength and poor valuation.
Buffett fit
Weak fit
Owner
22
Durability
40
Management
93
Price
1
Score updated 27 Oct 2026 · analysis from 20 Jun 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Technology stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If I owned Nokia outright, I'd be concerned about the future given the low of 2.7% and declining revenue CAGR of -2.71%.
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Nokia's durability is questionable, as evidenced by its EPS CAGR of -21.52% over the last five years.
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Management has maintained a flat share count with a -0.96% CAGR, indicating a conservative approach.
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With an yield of just 2.13% and a of 67.7, the valuation is not attractive.
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- The 5-year price target and the return it implies
- What would change the call
- Graham, Lynch and Greenblatt on the same stock
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1Strong financial health with an interest coverage ratio of 145.1.
- 2Low ratio of 0.16, indicating conservative leverage.
- 3Positive of $1.71B despite revenue challenges.
- 4Management quality score of 93 reflects strong operational oversight.
Concerns
5- 1Low of 2.7% significantly underperforms the sector top-quintile cutoff of 13.4%.
- 2High of 67.7 suggests the stock is overvalued relative to earnings.
- 3 of 5.1% is below the sector top-quintile cutoff of 17.9%.
- 4Revenue has declined at a CAGR of -2.71% over the last five years.
Price history
$8.64+52.1%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Nokia provides mobile, fixed, and cloud network solutions, generating $23.19B in revenue. Their segments include Mobile Networks and Cloud Services, but margins are low, with a of 44.2%. The unit economics are challenged by the competitive landscape.
How this analysis has moved
The call has held across 6 reviews.
Sep 27, 2026 → Oct 26, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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