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NOK (TSE:7240) Stock Faces One Off Gain Doubts Despite EPS Jump

Simply Wall St · 1d ago

NOK stock came into this earnings print looking slightly fatigued, with the share price roughly flat over the past week after a stronger month. The market now has to process a cleaner profit picture. Quarterly basic earnings per share sit at ¥56.99 and net income is ¥9,075m, both framed against a recent 12 month period that was lifted by a ¥20.9b one off gain. That is the real fault line today. The question for investors is how much of the old optimism still holds once that temporary boost is stripped away.

Is NOK stock genuinely cheap on a 9.7x P/E with a modelled fair value above the current price, or is that one off ¥20.9b gain hiding a value trap risk? See the full valuation analysis for NOK

Q1 2027 Earnings Summary

  • Revenue (Q1 2027 vs Q1 2026): ¥181,243m vs. ¥171,866m (up about 5.5%)
  • Net Income (Excl. Extra Items, Q1 2027 vs Q1 2026): ¥9,075m vs. ¥5,729m (up about 58.5%)
  • Basic EPS (Q1 2027 vs Q1 2026): ¥56.99 vs. ¥35.11 (up about 62.3%)
  • Trailing 12 Month Net Margin (to Q1 2027 vs prior year period): 6.6%, compared with 3.9% in the prior period, helped by a ¥20.9b one off gain in the latest period

Prefer clean charts instead of another wall of NOK earnings figures and ratios? Get a full visual breakdown of NOK’s financial picture, with valuation front and center, in the latest company report for NOK.

TSE:7240 Trailing 12-Month Earnings & Revenue History as at Aug 2026
TSE:7240 Trailing 12-Month Earnings & Revenue History as at Aug 2026

What The Latest NOK Numbers Offer Bulls

For investors leaning positive on NOK, the latest quarter edges the story in your favour. Revenue sits at ¥181,243m against ¥171,866m a year earlier, which supports the idea that a diversified industrial supplier can still grow through mixed cycles. Earnings quality also looks firmer. Net income excluding extra items is ¥9,075m versus ¥5,729m, and basic EPS is ¥56.99 versus ¥35.11. Even allowing for the previous ¥20.9b one off gain, the underlying profit trend currently supports the case that the core seals and components business is holding its ground.

Where The NOK Bear Case Still Bites

Bears will point straight to that ¥20.9b one off gain. The trailing 12 month net margin sits at 6.6% compared with 3.9% in the prior period, but that lift is not purely operational. If the temporary item is excluded, the margin picture looks less decisive. This keeps alive concerns about how much pricing power NOK really has as a cyclical supplier. The recent 7 day share price decline of about 0.7% also shows the market is not treating this as a clean, low risk earnings upgrade.

Access the analyst playbook on where NOK might really be heading next. The surface around ¥3,025 looks calm, but the models behind future revenue, margins and free cash flow are rarely this aligned for long. Reveal where the consensus breaks on NOK’s multi year path with the full analyst estimates for NOK

Take Control Of Your NOK Thesis

If NOK’s cleaner earnings picture and questions around that ¥20.9b one off gain have your attention, register for free with Simply Wall St and add it to a Watchlist to track price against fair value and wait for a setup that suits you. Once you own NOK or other stocks, keep your moves deliberate with the Portfolio Command Center that cuts through noise and highlights the updates that matter most. For a longer term view, compare your thinking with thousands of other investors through the Community and see how sentiment is shifting around companies you follow. By spotting potential catalysts and risks early, you can act with more confidence and stay informed about the market.

Seeking Alternatives Beyond NOK?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.