Overview Dividends

(ERIC) Telefonaktiebolaget LM - Ratings and Ratios

Exchange: NASDAQ • Country: Sweden • Currency: USD • Type: Common Stock • ISIN: US2948216088

Radios, Core Networks, IoT Connectivity, Broadcast Software

Communications Equipment
Market Cap in USD: 32,066m

IPO / Inception: 1989-09-28
Return 12m vs S&P 500: 5.89%

EPS (Earnings per Share)

EPS CAGR: -0.86%
EPS Trend: -6.0%

Last SUE: 1.88
Qual. Beats: 1

Revenue

Rev. CAGR: -7.03%
Rev. Trend: -48.8%

Last SUE: -0.02
Qual. Beats: 0

Dividends

Dividend Yield	2.88%
Yield on Cost 5y	2.85%
Yield CAGR 5y	12.60%
Payout Consistency	74.2%
Payout Ratio	33.7%

Risk via 5d forecast
Volatility	29.9%
Value at Risk 5%th	43.0%
Relative Tail Risk	-12.42%

Reward TTM
Sharpe Ratio	0.68
Alpha	11.11
CAGR/Max DD	0.84

Character TTM
Hurst Exponent	0.533
Beta	0.686
Beta Downside	0.838

Drawdowns 3y
Max DD	27.62%
Mean DD	9.50%
Median DD	8.15%

Description: ERIC Telefonaktiebolaget LM December 17, 2025

Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC) supplies end-to-end mobile connectivity solutions to telecom operators, enterprises, and public-sector customers, organized into four segments: Networks, Cloud Software & Services, Enterprise, and Other (which includes RedBee Media’s video-distribution business). Its Networks segment covers the full radio access network (RAN) stack-antennas, radios, baseband compute, and software-plus transport, deployment services, and ongoing network optimization.

The Cloud Software & Services segment delivers core-network infrastructure, business-support systems, and AI-driven network-management tools, while the Enterprise segment focuses on private 5G, IoT connectivity, and vehicular communications. Ericsson operates globally across North America, Europe, Latin America, the Middle East, Africa, Northeast and Southeast Asia, Oceania, and India, reflecting a diversified geographic revenue mix.

Key recent metrics: FY 2023 revenue reached $27.1 billion, with the Networks segment contributing ~ 65 % and a year-over-year growth of 3 % driven by 5G roll-outs; R&D spend was $2.7 billion (≈ 10 % of revenue), underscoring its focus on next-gen radio and cloud-native solutions; and the company’s 5G market share in Europe remained above 30 %, a critical driver as operators accelerate capex to meet demand for higher-speed mobile services. Macro-level, global telecom capex is projected to grow ~ 5 % CAGR through 2027, primarily fueled by 5G expansion and edge-computing initiatives, which directly benefit Ericsson’s product pipeline.

For a deeper quantitative assessment, see the ValueRay analysis of ERIC.

Piotroski VR‑10 (Strict, 0-10) 6.0

Net Income (24.25b TTM) > 0 and > 6% of Revenue (6% = 14.21b TTM)

FCFTA 0.11 (>2.0%) and ΔFCFTA -3.16pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 8.68% (prev 9.46%; Δ -0.78pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.12 (>3.0%) and CFO 34.61b > Net Income 24.25b (YES >=105%, WARN >=100%)

Net Debt (1.24b) to EBITDA (45.91b) ratio: 0.03 <= 3.0 (WARN <= 3.5)

Current Ratio 1.17 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (3.33b) change vs 12m ago -0.18% (target <= -2.0% for YES)

Gross Margin 47.60% (prev 43.45%; Δ 4.15pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 85.77% (prev 89.34%; Δ -3.57pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 11.17 (EBITDA TTM 45.91b / Interest Expense TTM 3.40b) >= 6 (WARN >= 3)

Altman Z'' 2.30

(A) 0.07 = (Total Current Assets 140.54b - Total Current Liabilities 119.99b) / Total Assets 281.27b

(B) 0.15 = Retained Earnings (Balance) 42.35b / Total Assets 281.27b

(D) 0.39 = Book Value of Equity 69.64b / Total Liabilities 179.22b

Total Rating: 2.30 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 75.04

1. Piotroski 6.0pt

2. FCF Yield 11.05%

3. FCF Margin 13.58%

4. Debt/Equity 0.43

5. Debt/Ebitda 0.03

6. ROIC - WACC (= 14.59)%

7. RoE 26.31%

8. Rev. Trend -48.75%

9. EPS Trend -6.05%

What is the price of ERIC shares?

As of December 22, 2025, the stock is trading at USD 9.68 with a total of 7,875,050 shares traded.
Over the past week, the price has changed by +1.15%, over one month by +3.86%, over three months by +22.16% and over the past year by +24.46%.

Is ERIC a buy, sell or hold?

Telefonaktiebolaget LM has received a consensus analysts rating of 2.75. Therefor, it is recommend to hold ERIC.

Strong Buy: 0
Buy: 1
Hold: 4
Sell: 3
Strong Sell: 0

What are the forecasts/targets for the ERIC price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	8.9	-8.4%
Analysts Target Price	8.9	-8.4%
ValueRay Target Price	10.6	9.4%

ERIC Fundamental Data Overview December 18, 2025

Market Cap SEK = 298.03b (32.07b USD * 9.2943 USD.SEK)
P/E Trailing = 12.025
P/E Forward = 16.8634
P/S = 1.2304
P/B = 2.8734
P/EG = 3.5323
Beta = 0.496
Revenue TTM = 236.84b SEK
EBIT TTM = 37.94b SEK
EBITDA TTM = 45.91b SEK
Long Term Debt = 29.87b SEK (from longTermDebt, last quarter)
Short Term Debt = 8.45b SEK (from shortTermDebt, last quarter)
Debt = 43.75b SEK (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.24b SEK (from netDebt column, last quarter)
Enterprise Value = 290.97b SEK (298.03b + Debt 43.75b - CCE 50.82b)
Interest Coverage Ratio = 11.17 (Ebit TTM 37.94b / Interest Expense TTM 3.40b)
FCF Yield = 11.05% (FCF TTM 32.15b / Enterprise Value 290.97b)
FCF Margin = 13.58% (FCF TTM 32.15b / Revenue TTM 236.84b)
Net Margin = 10.24% (Net Income TTM 24.25b / Revenue TTM 236.84b)
Gross Margin = 47.60% ((Revenue TTM 236.84b - Cost of Revenue TTM 124.11b) / Revenue TTM)
Gross Margin QoQ = 48.09% (prev 48.03%)
Tobins Q-Ratio = 1.03 (Enterprise Value 290.97b / Total Assets 281.27b)
Interest Expense / Debt = 1.65% (Interest Expense 723.2m / Debt 43.75b)
Taxrate = 24.36% (3.58b / 14.70b)
NOPAT = 28.70b (EBIT 37.94b * (1 - 24.36%))
Current Ratio = 1.17 (Total Current Assets 140.54b / Total Current Liabilities 119.99b)
Debt / Equity = 0.43 (Debt 43.75b / totalStockholderEquity, last quarter 102.22b)
Debt / EBITDA = 0.03 (Net Debt 1.24b / EBITDA 45.91b)
Debt / FCF = 0.04 (Net Debt 1.24b / FCF TTM 32.15b)
Total Stockholder Equity = 92.16b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.62% (Net Income 24.25b / Total Assets 281.27b)
RoE = 26.31% (Net Income TTM 24.25b / Total Stockholder Equity 92.16b)
RoCE = 31.09% (EBIT 37.94b / Capital Employed (Equity 92.16b + L.T.Debt 29.87b))
RoIC = 22.20% (NOPAT 28.70b / Invested Capital 129.27b)
WACC = 7.61% (E(298.03b)/V(341.79b) * Re(8.54%) + D(43.75b)/V(341.79b) * Rd(1.65%) * (1-Tc(0.24)))
Discount Rate = 8.54% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 81.65 | Cagr: 0.04%
[DCF Debug] Terminal Value 72.72% ; FCFE base≈35.11b ; Y1≈28.31b ; Y5≈19.54b
Fair Price DCF = 108.0 (DCF Value 331.61b / Shares Outstanding 3.07b; 5y FCF grow -23.20% → 3.0% )
EPS Correlation: -6.05 | EPS CAGR: -0.86% | SUE: 1.88 | # QB: 1
Revenue Correlation: -48.75 | Revenue CAGR: -7.03% | SUE: -0.02 | # QB: 0
EPS next Quarter (2026-03-31): EPS=0.10 | Chg30d=+0.000 | Revisions Net=+1 | Analysts=1
EPS next Year (2026-12-31): EPS=0.59 | Chg30d=+0.000 | Revisions Net=+1 | Growth EPS=-24.3% | Growth Revenue=+0.2%

Additional Sources for ERIC Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle