ERIC Stock Analysis: Telefonaktiebolaget LM | NASDAQ
Communication Equipment | NASDAQ, USA | Market Cap: 33.851m USD | 12M Return: 19.2% | US2948216088 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 104M
EPS Trend: 91.8%
Qual. Beats: 0
Rev. Trend: -94.3%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC) is a Swedish telecommunications equipment provider founded in 1876 and headquartered in Stockholm. The company supplies mobile connectivity solutions to communications service providers, enterprises, and public sector customers across the Americas, Europe, the Middle East, Africa, Northeast Asia, Southeast Asia, Oceania, and India. Ericsson operates through four segments: Networks (5G radio access networks, transport networks, antennas, and lifecycle services), Cloud Software and Services (core networks, BSS/OSS, and managed services), Enterprise (private 5G, WWAN, and global communications platforms), and Other (RedBee Media for broadcast video services). The company maintains a strategic collaboration with T-Mobile US to develop AI-native Scheduler with Link Adaptation software. As a major player in the communications equipment sector, Ericsson is one of the primary global vendors of mobile network infrastructure alongside competitors such as Nokia and Huawei.
- North America 5G RAN dominance boosts Networks segment revenue
- Cloud Software margins pressured by managed services mix shift
- Enterprise private 5G adoption accelerates across industrial verticals
| Net Income: 19.2b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA -1.98 > 1.0 |
| NWC/Revenue: 9.35% < 20% (prev 8.68%; Δ 0.68% < -1%) |
| CFO/TA 0.11 > 3% & CFO 31.8b > Net Income 19.2b |
| Net Debt (-5.43b) to EBITDA (36.8b): -0.15 < 3 |
| Current Ratio: 1.16 > 1.5 & < 3 |
| Outstanding Shares: last quarter (3.28b) vs 12m ago -1.65% < -2% |
| Gross Margin: 47.27% > 18% (prev 47.60%; Δ -0.32% > 0.5%) |
| Asset Turnover: 79.34% > 50% (prev 84.22%; Δ -4.87% > 0%) |
| Interest Coverage Ratio: 9.40 > 6 (EBIT TTM 29.0b / Interest Expense TTM 3.08b) |
| A: 0.07 (Total Current Assets 158b - Total Current Liabilities 136b) / Total Assets 302b |
| B: 0.22 (Retained Earnings 65.1b / Total Assets 302b) |
| C: 0.10 (EBIT TTM 29.0b / Avg Total Assets 291b) |
| D: 0.58 (Book Value of Equity 110b / Total Liabilities 190b) |
| Altman-Z'' = 2.45 = A |
| DSRI: 1.04 (Receivables 63.4b/62.3b, Revenue 231b/237b) |
| GMI: 1.01 (GM 47.60% / 47.27%) |
| AQI: 0.95 (AQ_t 0.42 / AQ_t-1 0.45) |
| SGI: 0.98 (Revenue 231b / 237b) |
| TATA: -0.04 (NI 19.2b - CFO 31.8b) / TA 302b) |
| Beneish M = -3.03 (Cap -4..+1) = AA |
As of October 27, 2026, the stock is trading at USD 10.89 with a total of 12,080,890 shares traded. Over the past week, the price has changed by +5.32%, over one month by +17.58%, over three months by +14.54% and over the past year by +19.18%.
Current recommended Stop Loss: 10.50 (which is 3.6% or 1.4 ATR below the current price).
Telefonaktiebolaget LM has received a consensus analysts rating of 2.14. Therefore, it is recommended to sell ERIC.
- StrongBuy: 0
- Buy: 0
- Hold: 3
- Sell: 2
- StrongSell: 2
| Analysts Target Price | 9.5 | -12.6% |
Market Cap SEK = 337b (33.9b USD * 9.9524 USD.SEK)
P/E Trailing = 16.8226
P/E Forward = 18.018
P/S = 1.4184
P/B = 3.0335
P/EG = 3.5323
Revenue TTM = 231b SEK
EBIT TTM = 29.0b SEK
EBITDA TTM = 36.8b SEK
Long Term Debt = 29.2b SEK (from longTermDebt, last fiscal year)
Short Term Debt = 11.2b SEK (from shortTermDebt, last quarter)
Debt = 53.4b SEK (from shortLongTermDebtTotal, last quarter) + Leases 8.02b
Net Debt = -5.43b SEK (calculated: Debt 53.4b - CCE 58.8b)
Enterprise Value = 331b SEK (337b + Debt 53.4b - CCE 58.8b)
Interest Coverage Ratio = 9.40 (Ebit TTM 29.0b / Interest Expense TTM 3.08b)
EV/FCF = 11.63x (Enterprise Value 331b / FCF TTM 28.5b)
FCF Yield = 8.60% (FCF TTM 28.5b / Enterprise Value 331b)
FCF Margin = 12.33% (FCF TTM 28.5b / Revenue TTM 231b)
Net Margin = 8.29% (Net Income TTM 19.2b / Revenue TTM 231b)
Gross Margin = 47.27% ((Revenue TTM 231b - Cost of Revenue TTM 122b) / Revenue TTM)
Gross Margin QoQ = 47.06% (prev 45.78%)
Tobins Q-Ratio = 1.10 (Enterprise Value 331b / Total Assets 302b)
Interest Expense / Debt = 5.77% (Interest Expense 3.08b / Debt 53.4b)
Taxrate = 25.75% (6.66b / 25.9b)
NOPAT = 21.5b (EBIT 29.0b * (1 - 25.75%))
Current Ratio = 1.16 (Total Current Assets 158b / Total Current Liabilities 136b)
Debt / Equity = 0.48 (Debt 53.4b / totalStockholderEquity, last quarter 110b)
Debt / EBITDA = -0.15 (Net Debt -5.43b / EBITDA 36.8b)
Debt / FCF = -0.19 (Net Debt -5.43b / FCF TTM 28.5b)
Total Stockholder Equity = 106b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.58% (Net Income 19.2b / Total Assets 302b)
RoE = 18.01% (Net Income TTM 19.2b / Total Stockholder Equity 106b)
RoCE = 21.35% (EBIT 29.0b / Capital Employed (Equity 106b + L.T.Debt 29.2b))
RoIC = 13.01% (NOPAT 21.5b / Invested Capital 165b)
WACC = 6.94% (E(337b)/V(390b) * Re(7.36%) + D(53.4b)/V(390b) * Rd(5.77%) * (1-Tc(0.26)))
Discount Rate = 7.36% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -52.68 | Cagr: -0.72%
[DCF] Terminal Value 73.74% ; FCFF base≈30.0b ; Y1≈27.2b ; Y5≈23.6b
[DCF] Fair Price = 127.7 (EV 375b - Net Debt -5.43b = Equity 381b / Shares 2.98b; r=8.35% [WACC [floored]]; 5y FCF grow -11.33% → 2.50% )
EPS Correlation: 91.84 | EPS CAGR: 50.13% | SUE: 0.47 | # QB: 0
Revenue Correlation: -94.27 | Revenue CAGR: -4.56% | SUE: 0.20 | # QB: 0
EPS current Quarter (2027-03-31): EPS=0.10 | Chg30d=-0.73% | Revisions=-25% | Analysts=1
EPS current Year (2026-12-31): EPS=0.66 | Chg30d=+10.93% | Revisions=-40% | GrowthEPS=-34.5% | GrowthRev=-2.4%
EPS next Year (2027-12-31): EPS=0.63 | Chg30d=+1.09% | Revisions=-40% | GrowthEPS=-3.8% | GrowthRev=+1.7%
[Analyst] Revisions Ratio: -62% (up=0, down=5)