Nokia Strategic and Financial Analysis
Nokia
Corporate Finance
Julio Santiesteban 589550
November, 2012.
Index
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2
Executive Summary
Brief Firm Bio
Corporate Governance
General Economic Analysis
Industry Analysis
Competitive Analysis
Financial Analysis
Value Creation Analysis
Conclusions and Recommendations
Appendix
References
Page # 3
Page # 4
Page # 5
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Page # 12
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Page # 26
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Executive Summary
Nokia has been a story of success and innovation and has had the capacity to reinvent itself many times. In 2011 Nokia was the leader in cellphone marketshare, that they just lost.
In the following pages we will present our analysis of the company financials, economy and industry.
It was interesting for us to analyze a company like Nokia, that once was the leader and now it could be a lesson to learn for other companies.
Our recommendation is not to buy, and just by the low value of the market to hold and expect the results of their forthcoming new releases.
3
Brief Firm Bio
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Nokia was founded in 1855 in Tampere, Finland as a paper manufacturing company.
Nokia Corporation was formed in 1967 from a merger of Finnish Rubber Works, Finnish Cable
Works and Nokia Company.
Headquarters in Espoo, Finland.
Industry: Communication Equipment
Business Activity: Supplies cell phones, telecomm services and multimedia terminals.
NYSE : (NOK)
Beta (Yahoo): 1.78
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Stock price 1996 to 2012
4
Source: Yahoo Finance http://finance.yahoo.com/echarts?s=NOK+Interactive#symbol=NOK;range=1d Corporate Governance
Nokia has many good practices for Corporate Governance as they have to comply with regulations.
About management ownership, they have a Insider Policy that “prohibits trading in Nokia securities during the threeweek “closed-window” period immediately preceding the release of our quarterly results including the day of the release” Is a good
Corporate Finance
Julio Santiesteban 589550
November, 2012.
Index
•
•
•
•
•
•
•
•
•
•
•
2
Executive Summary
Brief Firm Bio
Corporate Governance
General Economic Analysis
Industry Analysis
Competitive Analysis
Financial Analysis
Value Creation Analysis
Conclusions and Recommendations
Appendix
References
Page # 3
Page # 4
Page # 5
Page # 6
Page # 7
Page # 8
Page # 9
Page # 12
Page # 13
Page # 14
Page # 26
2
Executive Summary
Nokia has been a story of success and innovation and has had the capacity to reinvent itself many times. In 2011 Nokia was the leader in cellphone marketshare, that they just lost.
In the following pages we will present our analysis of the company financials, economy and industry.
It was interesting for us to analyze a company like Nokia, that once was the leader and now it could be a lesson to learn for other companies.
Our recommendation is not to buy, and just by the low value of the market to hold and expect the results of their forthcoming new releases.
3
Brief Firm Bio
•
•
Nokia was founded in 1855 in Tampere, Finland as a paper manufacturing company.
Nokia Corporation was formed in 1967 from a merger of Finnish Rubber Works, Finnish Cable
Works and Nokia Company.
Headquarters in Espoo, Finland.
Industry: Communication Equipment
Business Activity: Supplies cell phones, telecomm services and multimedia terminals.
NYSE : (NOK)
Beta (Yahoo): 1.78
•
•
•
•
•
Stock price 1996 to 2012
4
Source: Yahoo Finance http://finance.yahoo.com/echarts?s=NOK+Interactive#symbol=NOK;range=1d Corporate Governance
Nokia has many good practices for Corporate Governance as they have to comply with regulations.
About management ownership, they have a Insider Policy that “prohibits trading in Nokia securities during the threeweek “closed-window” period immediately preceding the release of our quarterly results including the day of the release” Is a good