ERIC Stock Analysis: Telefonaktiebolaget LM | NASDAQ
Communication Equipment | NASDAQ, USA | Market Cap: 36.316m USD | 12M Return: 35.9% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 121M
EPS Trend: 81.3%
Qual. Beats: 0
Rev. Trend: -94.5%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 10.5 years of data
Each month shows its average return; the small number below is its reliability (0–100) — how consistently that month repeated across the years. Higher means more dependable.
Telefonaktiebolaget LM Ericsson (publ) provides mobile connectivity solutions to communications service providers, enterprises, and the public sector, operating through four segments: Networks (hardware, software, and services for 5G networks, including RAN, transport networks, antennas, and deployment services); Cloud Software and Services (core networks, BSS/OSS, network management, and managed services); Enterprise (networking, global communications platforms, WWAN, and private 5G networks); and Other, which houses RedBee Medias live and on-demand video services for broadcasters and sports leagues.
The company sells across the Americas, Europe, the Middle East, Africa, Northeast and Southeast Asia, Oceania, and India, and has a strategic collaboration with T-Mobile US for the development of an AI-native Scheduler with Link Adaptation software. As a large-cap Stockholm-based vendor classified in the GICS Communications Equipment sub-industry, Ericsson operates in a sector dominated by a small number of global infrastructure suppliers serving wireless carriers and, increasingly, enterprise private-network buyers.
The company was founded in 1876, headquartered in Stockholm, Sweden, and was renamed to its present form in January 1926 after originally operating as Allmanna Telefon AB LM Ericsson.
- North American carrier contracts lift Networks revenue
- IPR licensing income offsets RAN pricing pressure
- Enterprise private 5G sales expand at double digits
| Net Income: 24.8b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA -4.25 > 1.0 |
| NWC/Revenue: 7.09% < 20% (prev 4.83%; Δ 2.27% < -1%) |
| CFO/TA 0.12 > 3% & CFO 35.2b > Net Income 24.8b |
| Net Debt (-15.8b) to EBITDA (42.6b): -0.37 < 3 |
| Current Ratio: 1.12 > 1.5 & < 3 |
| Outstanding Shares: last quarter (3.34b) vs 12m ago 0.09% < -2% |
| Gross Margin: 48.05% > 18% (prev 46.18%; Δ 1.87% > 0.5%) |
| Asset Turnover: 81.13% > 50% (prev 88.60%; Δ -7.47% > 0%) |
| Interest Coverage Ratio: 12.76 > 6 (EBIT TTM 35.9b / Interest Expense TTM 2.82b) |
| A: 0.06 (Total Current Assets 151b - Total Current Liabilities 134b) / Total Assets 289b |
| B: 0.23 (Retained Earnings 65.1b / Total Assets 289b) |
| C: 0.13 (EBIT TTM 35.9b / Avg Total Assets 283b) |
| D: 0.55 (Book Value of Equity 102b / Total Liabilities 186b) |
| Altman-Z'' = 2.53 = A |
| DSRI: 1.01 (Receivables 62.3b/65.9b, Revenue 229b/245b) |
| GMI: 0.96 (GM 46.18% / 48.05%) |
| AQI: 0.99 (AQ_t 0.42 / AQ_t-1 0.43) |
| SGI: 0.94 (Revenue 229b / 245b) |
| TATA: -0.04 (NI 24.8b - CFO 35.2b) / TA 289b) |
| Beneish M = -3.11 (Cap -4..+1) = AA |
As of June 30, 2026, the stock is trading at USD 10.96 with a total of 7,448,874 shares traded. Over the past week, the price has changed by -4.86%, over one month by -14.62%, over three months by +2.57% and over the past year by +35.88%.
Current recommended Stop Loss: 10.40 (which is 5.1% or 1.4 ATR below the current price).
Telefonaktiebolaget LM has received a consensus analysts rating of 2.75. Therefore, it is recommended to hold ERIC.
- StrongBuy: 0
- Buy: 1
- Hold: 4
- Sell: 3
- StrongSell: 0
| Analysts Target Price | 10.5 | -4.7% |
Market Cap SEK = 354b (36.3b USD * 9.7384 USD.SEK)
P/E Trailing = 14.2338
P/E Forward = 20.6186
P/S = 1.5469
P/B = 3.4576
P/EG = 3.5323
Revenue TTM = 229b SEK
EBIT TTM = 35.9b SEK
EBITDA TTM = 42.6b SEK
Long Term Debt = 21.5b SEK (from longTermDebt, last quarter)
Short Term Debt = 11.6b SEK (from shortTermDebt, last quarter)
Debt = 47.0b SEK (from shortLongTermDebtTotal, last quarter) + Leases 7.88b
Net Debt = -15.8b SEK (calculated: Debt 47.0b - CCE 62.7b)
Enterprise Value = 338b SEK (354b + Debt 47.0b - CCE 62.7b)
Interest Coverage Ratio = 12.76 (Ebit TTM 35.9b / Interest Expense TTM 2.82b)
EV/FCF = 10.34x (Enterprise Value 338b / FCF TTM 32.7b)
FCF Yield = 9.67% (FCF TTM 32.7b / Enterprise Value 338b)
FCF Margin = 14.24% (FCF TTM 32.7b / Revenue TTM 229b)
Net Margin = 10.80% (Net Income TTM 24.8b / Revenue TTM 229b)
Gross Margin = 48.05% ((Revenue TTM 229b - Cost of Revenue TTM 119b) / Revenue TTM)
Gross Margin QoQ = 48.11% (prev 47.98%)
Tobins Q-Ratio = 1.17 (Enterprise Value 338b / Total Assets 289b)
Interest Expense / Debt = 6.00% (Interest Expense 2.82b / Debt 47.0b)
Taxrate = 24.67% (8.18b / 33.2b)
NOPAT = 27.1b (EBIT 35.9b * (1 - 24.67%))
Current Ratio = 1.12 (Total Current Assets 151b / Total Current Liabilities 134b)
Debt / Equity = 0.46 (Debt 47.0b / totalStockholderEquity, last quarter 102b)
Debt / EBITDA = -0.37 (Net Debt -15.8b / EBITDA 42.6b)
Debt / FCF = -0.48 (Net Debt -15.8b / FCF TTM 32.7b)
Total Stockholder Equity = 100.0b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.76% (Net Income 24.8b / Total Assets 289b)
RoE = 24.78% (Net Income TTM 24.8b / Total Stockholder Equity 100.0b)
RoCE = 29.58% (EBIT 35.9b / Capital Employed (Equity 100.0b + L.T.Debt 21.5b))
RoIC = 17.52% (NOPAT 27.1b / Invested Capital 155b)
WACC = 8.03% (E(354b)/V(401b) * Re(8.50%) + D(47.0b)/V(401b) * Rd(6.00%) * (1-Tc(0.25)))
Discount Rate = 8.50% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 55.21 | Cagr: 0.17%
[DCF] Terminal Value 73.10% ; FCFF base≈36.8b ; Y1≈32.3b ; Y5≈26.1b
[DCF] Fair Price = 142.5 (EV 419b - Net Debt -15.8b = Equity 435b / Shares 3.05b; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 81.30 | EPS CAGR: 39.29% | SUE: 0.12 | # QB: 0
Revenue Correlation: -94.53 | Revenue CAGR: -6.55% | SUE: 0.00 | # QB: 0
EPS next Quarter (2026-09-30): EPS=0.15 | Chg30d=-8.09% | Revisions=-33% | Analysts=2
EPS current Year (2026-12-31): EPS=0.62 | Chg30d=-4.28% | Revisions=-33% | GrowthEPS=-37.7% | GrowthRev=-4.1%
EPS next Year (2027-12-31): EPS=0.68 | Chg30d=-5.09% | Revisions=-33% | GrowthEPS=+8.6% | GrowthRev=+1.7%
[Analyst] Revisions Ratio: -33%