Nokia Soars 138% YTD but Operating Margin Remains Below 8%
NOK•Shares of Nokia have climbed 138% year-to-date while its trailing 12-month operating margin sits below 8%, lagging key rivals. Trefis warns that rising cost pressures and competitive pricing could keep free cash flow margin under 5%, limiting further upside without margin improvement.
1. Nokia’s 138% Rally and Margin Constraints
Nokia’s stock has surged 138% year-to-date, yet its trailing 12-month operating margin stands at roughly 7.5%, well below industry peers. Trefis notes that rising component costs and aggressive pricing in the 5G infrastructure market have compressed both operating and free cash flow margins, suggesting limited valuation upside until profitability metrics improve.
