(ERIC) Telefonaktiebolaget LM - Overview
Sector: Technology | Industry: Communication Equipment | Exchange: NASDAQ (USA) | Market Cap: 41.524m USD | Total Return: 50.6% in 12m
5G Infrastructure, Network Software, Antennas, Communication Platforms
Total Rating 61
Safety 87
Buy Signal 0.09
Communication Equipment
Industry Rotation: +0.0
Industry Rotation: +0.0
Market Cap:
41.5B
Avg Turnover: 87.8M
Avg Turnover: 87.8M
Risk 3d forecast
Volatility30.3%
VaR 5th Pctl4.77%
VaR vs Median-5.16%
Reward TTM
Sharpe Ratio1.29
Rel. Str. IBD81.9
Rel. Str. Peer Group45.6
Character TTM
Beta0.621
Beta Downside0.267
Hurst Exponent0.415
Drawdowns 3y
Max DD22.69%
CAGR/Max DD1.72
CAGR/Mean DD5.44
EPS (Earnings per Share)
EPS CAGR: -4.89%
EPS Trend: 38.6%
EPS Trend: 38.6%
Last SUE: 0.02
Qual. Beats: 0
Qual. Beats: 0
Revenue
Rev. CAGR: -6.18%
Rev. Trend: -57.6%
Rev. Trend: -57.6%
Last SUE: 0.00
Qual. Beats: 0
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Description: ERIC Telefonaktiebolaget LM
Telefonaktiebolaget LM Ericsson (ERIC) is a Sweden-based provider of mobile connectivity infrastructure and software, serving telecommunications operators and enterprises globally. The company’s core business is organized into four primary segments: Networks, Cloud Software and Services, Enterprise, and Other operations. Its portfolio centers on 5G Radio Access Network (RAN) hardware, AI-native software architectures, and core network management tools designed for service monetization and orchestration.
The Communications Equipment sector is characterized by high research and development costs and long-term capital expenditure cycles driven by generational network upgrades. Ericsson’s business model relies on a mix of hardware sales and recurring revenue from managed services and software licenses, which helps stabilize cash flows against the cyclical nature of global infrastructure rollouts. The company has also expanded into private 5G networks and global communications platforms to capture growth within the enterprise technology market.
For a more granular look at the companys fundamentals, consider reviewing the latest financial data on ValueRay.
- Global 5G infrastructure spending cycles dictate core network equipment revenue growth
- High-margin intellectual property licensing fees drive overall corporate profitability levels
- Expansion into enterprise wireless and global API platforms improves revenue diversification
- Geopolitical tensions and trade restrictions impact market share in key regions
- Cost reduction initiatives and operational streamlining influence quarterly operating margins
Piotroski VR‑10 (Strict)
5.0
| Net Income: 24.78b 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 35.19b > Net Income 24.78b |
| Net Debt (-12.95b) to EBITDA (46.17b): -0.28 < 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 0.46%; Δ 4.76k% > 0.5%) |
| Asset Turnover: 81.13% > 50% (prev 88.60%; Δ -7.47% > 0%) |
| Interest Coverage Ratio: 14.03 > 6 (EBITDA TTM 46.17b / Interest Expense TTM 2.82b) |
Altman Z''
2.41
| A: 0.06 (Total Current Assets 150.60b - Total Current Liabilities 134.32b) / Total Assets 288.79b |
| B: 0.23 (Retained Earnings 65.11b / Total Assets 288.79b) |
| C: 0.14 (EBIT TTM 39.52b / Avg Total Assets 282.87b) |
| D: 0.35 (Book Value of Equity 65.11b / Total Liabilities 186.22b) |
| Altman-Z'' Score: 2.41 = A |
Beneish M
-3.14
| DSRI: 1.01 (Receivables 62.27b/65.86b, Revenue 229.49b/245.38b) |
| GMI: 0.96 (GM 48.05% / 46.18%) |
| AQI: 0.99 (AQ_t 0.42 / AQ_t-1 0.43) |
| SGI: 0.94 (Revenue 229.49b / 245.38b) |
| TATA: -0.04 (NI 24.78b - CFO 35.19b) / TA 288.79b) |
| Beneish M-Score: -3.14 (Cap -4..+1) = AA |
What is the price of ERIC shares?
As of May 18, 2026, the stock is trading at USD 12.50 with a total of 7,015,262 shares traded.
Over the past week, the price has changed by +5.22%, over one month by +9.94%, over three months by +13.45% and over the past year by +50.55%.
Over the past week, the price has changed by +5.22%, over one month by +9.94%, over three months by +13.45% and over the past year by +50.55%.
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.
- StrongBuy: 0
- Buy: 1
- Hold: 4
- Sell: 3
- StrongSell: 0
What are the forecasts/targets for the ERIC price?
| Analysts Target Price | 10.5 | -16.4% |
Telefonaktiebolaget LM (ERIC) - Fundamental Data Overview
as of 16 May 2026
Market Cap SEK = 391.77b (41.52b USD * 9.4347 USD.SEK)P/E Trailing = 15.4198
P/E Forward = 21.2314
P/S = 1.5919
P/B = 3.5728
P/EG = 3.5323
Revenue TTM = 229.49b SEK
EBIT TTM = 39.52b SEK
EBITDA TTM = 46.17b SEK
Long Term Debt = 21.54b SEK (from longTermDebt, last quarter)
Short Term Debt = 11.58b SEK (from shortTermDebt, last quarter)
Debt = 39.07b SEK (from shortLongTermDebtTotal, last quarter)
Net Debt = -12.95b SEK (from netDebt column, last quarter)
Enterprise Value = 368.10b SEK (391.77b + Debt 39.07b - CCE 62.74b)
Interest Coverage Ratio = 14.03 (Ebit TTM 39.52b / Interest Expense TTM 2.82b)
EV/FCF = 11.26x (Enterprise Value 368.10b / FCF TTM 32.68b)
FCF Yield = 8.88% (FCF TTM 32.68b / Enterprise Value 368.10b)
FCF Margin = 14.24% (FCF TTM 32.68b / Revenue TTM 229.49b)
Net Margin = 10.80% (Net Income TTM 24.78b / Revenue TTM 229.49b)
Gross Margin = 48.05% ((Revenue TTM 229.49b - Cost of Revenue TTM 119.22b) / Revenue TTM)
Gross Margin QoQ = 48.11% (prev 47.98%)
Tobins Q-Ratio = 1.27 (Enterprise Value 368.10b / Total Assets 288.79b)
Interest Expense / Debt = 1.58% (Interest Expense 615.6m / Debt 39.07b)
Taxrate = 28.96% (375.2m / 1.30b)
NOPAT = 28.07b (EBIT 39.52b * (1 - 28.96%))
Current Ratio = 1.12 (Total Current Assets 150.60b / Total Current Liabilities 134.32b)
Debt / Equity = 0.38 (Debt 39.07b / totalStockholderEquity, last quarter 101.87b)
Debt / EBITDA = -0.28 (Net Debt -12.95b / EBITDA 46.17b)
Debt / FCF = -0.40 (Net Debt -12.95b / FCF TTM 32.68b)
Total Stockholder Equity = 99.98b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.76% (Net Income 24.78b / Total Assets 288.79b)
RoE = 24.78% (Net Income TTM 24.78b / Total Stockholder Equity 99.98b)
RoCE = 32.52% (EBIT 39.52b / Capital Employed (Equity 99.98b + L.T.Debt 21.54b))
RoIC = 20.82% (NOPAT 28.07b / Invested Capital 134.82b)
WACC = 7.53% (E(391.77b)/V(430.84b) * Re(8.17%) + D(39.07b)/V(430.84b) * Rd(1.58%) * (1-Tc(0.29)))
Discount Rate = 8.17% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 55.21 | Cagr: 0.17%
[DCF] Terminal Value 77.25% ; FCFF base≈36.85b ; Y1≈30.29b ; Y5≈21.71b
[DCF] Fair Price = 149.3 (EV 444.46b - Net Debt -12.95b = Equity 457.41b / Shares 3.06b; r=7.53% [WACC]; 5y FCF grow -21.43% → 3.0% )
EPS Correlation: 38.61 | EPS CAGR: -4.89% | SUE: 0.02 | # QB: 0
Revenue Correlation: -57.64 | Revenue CAGR: -6.18% | SUE: 0.00 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.11 | Chg30d=-8.25% | Revisions=+0% | Analysts=2
EPS next Quarter (2026-09-30): EPS=0.15 | Chg30d=-8.09% | Revisions=-33% | Analysts=2
EPS current Year (2026-12-31): EPS=0.65 | Chg30d=-8.69% | Revisions=-56% | GrowthEPS=-34.9% | GrowthRev=-4.1%
EPS next Year (2027-12-31): EPS=0.71 | Chg30d=+3.50% | Revisions=-25% | GrowthEPS=+9.6% | GrowthRev=+1.7%
[Analyst] Revisions Ratio: -56%