Apple, Nokia & Rogers Communications: 5G Stocks To Watch 

Summary

• Apple’s worldwide net sales revenue declined over 75 per cent year-over-year in latest quarter.
• Nokia’s stock has rebounded 38.42 per cent since the COVID-led market crash in March.
• Rogers Communications’ has recovered 10.7 per cent since the pandemic-led market crash in March.

 

The launch of Apple’s must-awaited first 5G enabled iPhone 12 in October was followed by a thud due to the sales miss. The tech company’s stock fell after the latest iPhone models hit the markets later than expected, impacting their revenue and net sales.

Apple also faces stiff competition from rival handset makers in the Chinese markets who are already offering 5G-supported devices. The iPhone maker’s stock plunged 5 per cent (i.e. US$ 100 billion) in the wake of low sales in the fourth quarter for its fiscal 2020.

Finnish-company Nokia also reported net sales with a 7 per cent decrease over its third quarter sales for its fiscal 2020, compared to Q3 FY 2019. The company is further looking increase its investment in 5G technology and has already entered a partnership with Canadian telecom giant Rogers Communications (TSX:RCI).

On the back of the earnings report, let us delve into the stock performance and the financial health of the 5G stocks: Apple Inc (NASDAQ:AAPL, AAPL:US), Nokia Corp (NYSE: NOK, NOK:US) and Rogers Communications (TSX:RCI).

Apple Inc (NASDAQ: AAPL, APPL:US)

Current Stock Price: US$ 115.35

Apple stocks have rallied over 100 per cent since the pandemic-led crash on March 24.  In its fourth quarter FY20, the company posted revenue of US$ 64.7 billion. Its worldwide net sales revenue declined over 75 per cent in Q4 FY20, compared to Q4 FY19.

Apple’s board of directors has declared a cash dividend of US$ 0.205 per share to its shareholder. It offers a quarterly dividend yield of 0.711 per cent.

Apple Stock Performance

The tech stock is up 8.55 per cent in the last three months and gained 58.27 per cent year-to-date (YTD). Apple’s current market capitalization is US$ 1999.34 billion.

The company’s price-to-book (P/B) ratio is 27.26, and the price-to-cashflow (P/CF) ratio is 25.6. Its current debt-to-earnings (D/E) ratio is 1.5, as per TMX data. This stock provides a positive return on equity (RoE) and return on assets (RoA) of 69.25 per cent and 18.27 per cent, respectively. The company’s earnings per share (EPS) is 3.29. Its price-to-earnings (P/E) ratio is 35.10.

Apple’s Year-To-Date Stock Performance Chart. (Source: EODHD/Others Thomson Reuters)

Nokia Corporation (NYSE: NOK, NOK:US)

Current Share Price: US$ 3.35

Finland-based Nokia Corp is one of the largest sellers of telecommunications equipment across the world. The company generates its revenue from selling wireless and fixed hardware, and software services. The company is working in Canada in collaboration with Rogers Communications.

The company’s net sales are down by 8 per cent in the third quarter FY20, compared to Q3 FY19.

Nokia Stock Performance

Nokia’s stock has rebounded 38.42 per cent since the COVID-led market crash on March 17. The stock is down 6.94 per cent in the last six months. The company’s year-to-date scrips registered a 9.21 per cent fall. Its current market capitalization stands at U$ 18.82 billion.

Nokia’ P/B ratio is 1.056, and the P/CF ratio is 6.4. Its current D/E ratio is 0.45, as per TMX data. The stock provides a 4.22 per cent ROE, and Its ROA is 1.59 per cent. The company’s EPS is -0.11. Its P/E ratio is 27.50.

Rogers Communications (TSX: RCI, NYSE: RCI)

Current Stock Price: C$ 57

Almost one-third of Canadians use Rogers’ wireless services. The company is one of the leading 5G data providers in Canada. 

Rogers Stock Performance

Rogers’ stock has recovered 10.7 per cent since the COVID-led market crash on March 24. The stock is down nearly 1.7 per cent in the last three months. The telecom’s year-to-date scrips registered an 11.82 per cent decrease. Its current market capitalization stands at C$ 6.33 billion.

Rogers Communications' Year-To-Date Stock Performance Chart; (Source: EODHD/Others Thomson Reuters)

Rogers’ P/B ratio is 2.867, and the P/CF ratio is 6.4. Its current D/E ratio is 2.15, as per TMX data. The stock provides a 15.75 per cent ROE, and Its ROA is 4.13 per cent. The company’s EPS is 3.93. Its P/E ratio is 18.10.

Rogers Financial Performance

Rogers Communications distributed quarterly dividend of C$ 253 million in Q3 2020. Rogers’ Board of Directors announced a quarterly dividend of C$ 0.50 per share. Its quarterly dividend yield is 3.509 per cent. The telecom stock posted a 5 per cent year-over-year (YoY) decline in its total service revenue in its Q3, ended September 30, 2020. Rogers’ total income was C$ 548 million in Q3, was down 14 per cent from C$ 622 million in the third quarter last year. The company reported adjusted EBITDA of C$ 1.63 billion in Q3, a four per cent YoY fall. Its cash from operating activities was C$ 986 million, plunged 24 per cent YoY.