(ERIC) Telefonaktiebolaget LM - Ratings and Ratios
Radio Networks, Core Software, Enterprise Connectivity, Media Services
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 2.91% |
| Yield on Cost 5y | 2.73% |
| Yield CAGR 5y | 12.60% |
| Payout Consistency | 74.2% |
| Payout Ratio | 33.7% |
| Risk via 10d forecast | |
|---|---|
| Volatility | 30.7% |
| Value at Risk 5%th | 43.9% |
| Relative Tail Risk | -13.00% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.59 |
| Alpha | 9.68 |
| CAGR/Max DD | 0.61 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.693 |
| Beta | 0.682 |
| Beta Downside | 0.841 |
| Drawdowns 3y | |
|---|---|
| Max DD | 30.58% |
| Mean DD | 10.73% |
| Median DD | 10.00% |
Description: ERIC Telefonaktiebolaget LM October 14, 2025
Telefonaktiebolaget LM Ericsson (publ) designs, manufactures, and services mobile-connectivity solutions for telecom operators, enterprises, and public-sector customers, operating through four segments: Networks; Cloud Software & Services; Enterprise; and Other (RedBee Media). The firm’s heritage dates back to 1876, and it is headquartered in Stockholm, Sweden.
In the Networks segment, Ericsson supplies end-to-end radio access network (RAN) hardware-including antennas, radios, baseband compute, and software-plus transport gear, active/passive antenna systems, and related deployment services. The Cloud Software & Services segment delivers core-network platforms, OSS/BSS, network-management and cognitive-network tools, and managed services. The Enterprise segment focuses on private cellular networks, vehicle and IoT connectivity, and a global communications platform, while the Other segment (RedBee Media) produces and distributes live and on-demand video for broadcasters and sports leagues.
Geographically, Ericsson’s revenue is broadly diversified, with roughly 40 % generated in North America, 30 % in Europe, and the remaining 30 % split among Asia-Pacific, Latin America, the Middle East, and Africa, reflecting its global customer base.
Key recent metrics (2023 fiscal year, per the company’s annual report) include total revenue of $27.5 billion, a net profit margin of 6.2 %, and free cash flow of $3.1 billion. The firm captured an estimated 30 % share of the worldwide 5G RAN market, and its order backlog stood at $31 billion, indicating multi-year revenue visibility. A material driver of future performance is the global telecom-capex cycle, where 5G rollout and the emerging 6G research agenda are expected to sustain demand for RAN and software solutions, but the pace is sensitive to macro-economic conditions such as interest-rate-driven spending constraints.
For a deeper quantitative assessment, you may explore ValueRay’s detailed valuation models for 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 |
| (C) 0.14 = EBIT TTM 37.94b / Avg Total Assets 276.14b |
| (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) 75.05
| 1. Piotroski 6.0pt |
| 2. FCF Yield 11.15% |
| 3. FCF Margin 13.58% |
| 4. Debt/Equity 0.43 |
| 5. Debt/Ebitda 0.03 |
| 6. ROIC - WACC (= 14.61)% |
| 7. RoE 26.31% |
| 8. Rev. Trend -48.65% |
| 9. EPS Trend -6.05% |
What is the price of ERIC shares?
Over the past week, the price has changed by +2.13%, over one month by -1.64%, over three months by +23.60% and over the past year by +22.06%.
Is ERIC a buy, sell or hold?
- 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 | 8.6 | -10.5% |
| Analysts Target Price | 8.6 | -10.5% |
| ValueRay Target Price | 10.5 | 9.2% |
ERIC Fundamental Data Overview November 24, 2025
P/E Trailing = 12.2078
P/E Forward = 17.0648
P/S = 0.1304
P/B = 2.9123
P/EG = 3.5323
Beta = 0.495
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 = 288.38b SEK (295.45b + Debt 43.75b - CCE 50.82b)
Interest Coverage Ratio = 11.17 (Ebit TTM 37.94b / Interest Expense TTM 3.40b)
FCF Yield = 11.15% (FCF TTM 32.15b / Enterprise Value 288.38b)
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 288.38b / 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 = 7.59% (E(295.45b)/V(339.21b) * Re(8.53%) + D(43.75b)/V(339.21b) * Rd(1.65%) * (1-Tc(0.24)))
Discount Rate = 8.53% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 81.65 | Cagr: 0.04%
[DCF Debug] Terminal Value 72.76% ; FCFE base≈35.11b ; Y1≈28.31b ; Y5≈19.54b
Fair Price DCF = 108.1 (DCF Value 332.18b / 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: -48.65 | Revenue CAGR: -7.03% | SUE: -0.02 | # QB: 0
Additional Sources for ERIC Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle