(ERIC) Telefonaktiebolaget LM - Overview
Sector: TechnologyIndustry: Communication Equipment | Exchange NASDAQ (USA) | Currency USD | Market Cap: 38.956m | Total Return 46% in 12m
Stock: Mobile Networks, Cloud Software, Enterprise Solutions, Media Services
Total Rating 72
Risk 90
Buy Signal 0.59
| Risk 5d forecast | |
|---|---|
| Volatility | 31.9% |
| Relative Tail Risk | -16.6% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 1.13 |
| Alpha | 33.85 |
| Character TTM | |
|---|---|
| Beta | 0.715 |
| Beta Downside | 0.634 |
| Drawdowns 3y | |
|---|---|
| Max DD | 25.04% |
| CAGR/Max DD | 1.34 |
EPS (Earnings per Share)
Revenue
Description: ERIC Telefonaktiebolaget LM March 05, 2026
Ericsson provides mobile connectivity solutions to communication service providers, enterprises, and the public sector. The company operates in the telecommunications equipment sector, which is characterized by rapid technological advancements such as 5G and IoT.
The Networks segment supplies hardware and software for radio access networks (RAN), including antennas, radios, and baseband units. The Cloud Software and Services segment delivers core network solutions, operational support systems, and managed network services. These services are critical for maintaining and upgrading telecommunications infrastructure.
The Enterprise segment focuses on global communication platforms, wireless connectivity for various applications, and private cellular networks. This business model leverages recurring revenue from service contracts and software licenses. The Other segment includes RedBee Media for video services.
Ericsson has a global presence across North America, Europe, Asia, and other regions, and collaborates with institutions like the University of Toronto on AI-powered mobile communication technologies. Further research into Ericssons financial performance and market position can be conducted on ValueRay.
Headlines to watch out for
- 5G infrastructure buildout drives Networks segment revenue
- Cloud Software and Services contract wins impact profitability
- Enterprise segment growth expands market reach
- Global macroeconomic conditions influence telecom spending
- Regulatory scrutiny on intellectual property licensing creates uncertainty
Piotroski VR‑10 (Strict, 0-10) 5.5
| Net Income: 27.75b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA -4.53 > 1.0 |
| NWC/Revenue: 14.18% < 20% (prev 9.02%; Δ 5.17% < -1%) |
| CFO/TA 0.11 > 3% & CFO 31.61b > Net Income 27.75b |
| Net Debt (2.11b) to EBITDA (47.49b): 0.04 < 3 |
| Current Ratio: 1.29 > 1.5 & < 3 |
| Outstanding Shares: last quarter (3.34b) vs 12m ago 0.27% < -2% |
| Gross Margin: 48.14% > 18% (prev 0.45%; Δ 4.77k% > 0.5%) |
| Asset Turnover: 79.68% > 50% (prev 83.59%; Δ -3.91% > 0%) |
| Interest Coverage Ratio: 13.62 > 6 (EBITDA TTM 47.49b / Interest Expense TTM 2.96b) |
Altman Z'' 2.87
| A: 0.12 (Total Current Assets 143.56b - Total Current Liabilities 110.94b) / Total Assets 279.23b |
| B: 0.23 (Retained Earnings 65.11b / Total Assets 279.23b) |
| C: 0.14 (EBIT TTM 40.28b / Avg Total Assets 288.62b) |
| D: 0.39 (Book Value of Equity 65.11b / Total Liabilities 168.96b) |
| Altman-Z'' Score: 2.87 = A |
Beneish M -3.14
| DSRI: 1.01 (Receivables 63.46b/68.13b, Revenue 229.96b/249.09b) |
| GMI: 0.93 (GM 48.14% / 44.93%) |
| AQI: 1.01 (AQ_t 0.43 / AQ_t-1 0.42) |
| SGI: 0.92 (Revenue 229.96b / 249.09b) |
| TATA: -0.01 (NI 27.75b - CFO 31.61b) / TA 279.23b) |
| Beneish M-Score: -3.14 (Cap -4..+1) = AA |
What is the price of ERIC shares?
As of March 26, 2026, the stock is trading at USD 11.62 with a total of 5,901,500 shares traded.
Over the past week, the price has changed by +1.31%, over one month by +3.84%, over three months by +20.04% and over the past year by +45.95%.
Over the past week, the price has changed by +1.31%, over one month by +3.84%, over three months by +20.04% and over the past year by +45.95%.
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?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 10.1 | -13.3% |
| Analysts Target Price | 10.1 | -13.3% |
ERIC Fundamental Data Overview March 21, 2026
Market Cap SEK = 365.05b (38.96b USD * 9.3709 USD.SEK)
P/E Trailing = 12.587
P/E Forward = 16.6945
P/S = 1.5175
P/B = 3.2705
P/EG = 3.5323
Revenue TTM = 229.96b SEK
EBIT TTM = 40.28b SEK
EBITDA TTM = 47.49b SEK
Long Term Debt = 29.16b SEK (from longTermDebt, last quarter)
Short Term Debt = 5.33b SEK (from shortTermDebt, last quarter)
Debt = 46.04b SEK (from shortLongTermDebtTotal, last quarter)
Net Debt = 2.11b SEK (from netDebt column, last quarter)
Enterprise Value = 354.44b SEK (365.05b + Debt 46.04b - CCE 56.64b)
Interest Coverage Ratio = 13.62 (Ebit TTM 40.28b / Interest Expense TTM 2.96b)
EV/FCF = 12.20x (Enterprise Value 354.44b / FCF TTM 29.05b)
FCF Yield = 8.20% (FCF TTM 29.05b / Enterprise Value 354.44b)
FCF Margin = 12.63% (FCF TTM 29.05b / Revenue TTM 229.96b)
Net Margin = 12.07% (Net Income TTM 27.75b / Revenue TTM 229.96b)
Gross Margin = 48.14% ((Revenue TTM 229.96b - Cost of Revenue TTM 119.26b) / Revenue TTM)
Gross Margin QoQ = 47.98% (prev 48.09%)
Tobins Q-Ratio = 1.27 (Enterprise Value 354.44b / Total Assets 279.23b)
Interest Expense / Debt = 1.23% (Interest Expense 568.4m / Debt 46.04b)
Taxrate = 22.65% (2.46b / 10.86b)
NOPAT = 31.15b (EBIT 40.28b * (1 - 22.65%))
Current Ratio = 1.29 (Total Current Assets 143.56b / Total Current Liabilities 110.94b)
Debt / Equity = 0.42 (Debt 46.04b / totalStockholderEquity, last quarter 109.54b)
Debt / EBITDA = 0.04 (Net Debt 2.11b / EBITDA 47.49b)
Debt / FCF = 0.07 (Net Debt 2.11b / FCF TTM 29.05b)
Total Stockholder Equity = 95.94b (last 4 quarters mean from totalStockholderEquity)
RoA = 9.61% (Net Income 27.75b / Total Assets 279.23b)
RoE = 28.92% (Net Income TTM 27.75b / Total Stockholder Equity 95.94b)
RoCE = 32.19% (EBIT 40.28b / Capital Employed (Equity 95.94b + L.T.Debt 29.16b))
RoIC = 23.65% (NOPAT 31.15b / Invested Capital 131.75b)
WACC = 7.66% (E(365.05b)/V(411.09b) * Re(8.50%) + D(46.04b)/V(411.09b) * Rd(1.23%) * (1-Tc(0.23)))
Discount Rate = 8.50% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 0.18%
[DCF] Terminal Value 75.85% ; FCFF base≈35.24b ; Y1≈27.58b ; Y5≈17.94b
[DCF] Fair Price = 117.1 (EV 361.82b - Net Debt 2.11b = Equity 359.71b / Shares 3.07b; r=7.66% [WACC]; 5y FCF grow -25.89% → 3.0% )
EPS Correlation: 44.24 | EPS CAGR: 137.7% | SUE: 4.0 | # QB: 2
Revenue Correlation: -31.15 | Revenue CAGR: 5.75% | SUE: -0.18 | # QB: 0
EPS next Quarter (2026-06-30): EPS=0.12 | Chg7d=-0.000 | Chg30d=-0.000 | Revisions Net=+1 | Analysts=2
EPS current Year (2026-12-31): EPS=0.72 | Chg7d=+0.008 | Chg30d=+0.019 | Revisions Net=+5 | Growth EPS=-27.7% | Growth Revenue=-2.1%
EPS next Year (2027-12-31): EPS=0.69 | Chg7d=+0.018 | Chg30d=+0.056 | Revisions Net=+2 | Growth EPS=-4.0% | Growth Revenue=+1.5%
[Analyst] Revisions Ratio: +1.00 (1 Up / 0 Down within 30d for Next Quarter)
[Growth] Implied Growth Rate = 0.6% (Discount Rate 8.5% - Earnings Yield 7.9%)
[Growth] Growth Spread = -2.4% (Analyst -1.8% - Implied 0.6%)
P/E Trailing = 12.587
P/E Forward = 16.6945
P/S = 1.5175
P/B = 3.2705
P/EG = 3.5323
Revenue TTM = 229.96b SEK
EBIT TTM = 40.28b SEK
EBITDA TTM = 47.49b SEK
Long Term Debt = 29.16b SEK (from longTermDebt, last quarter)
Short Term Debt = 5.33b SEK (from shortTermDebt, last quarter)
Debt = 46.04b SEK (from shortLongTermDebtTotal, last quarter)
Net Debt = 2.11b SEK (from netDebt column, last quarter)
Enterprise Value = 354.44b SEK (365.05b + Debt 46.04b - CCE 56.64b)
Interest Coverage Ratio = 13.62 (Ebit TTM 40.28b / Interest Expense TTM 2.96b)
EV/FCF = 12.20x (Enterprise Value 354.44b / FCF TTM 29.05b)
FCF Yield = 8.20% (FCF TTM 29.05b / Enterprise Value 354.44b)
FCF Margin = 12.63% (FCF TTM 29.05b / Revenue TTM 229.96b)
Net Margin = 12.07% (Net Income TTM 27.75b / Revenue TTM 229.96b)
Gross Margin = 48.14% ((Revenue TTM 229.96b - Cost of Revenue TTM 119.26b) / Revenue TTM)
Gross Margin QoQ = 47.98% (prev 48.09%)
Tobins Q-Ratio = 1.27 (Enterprise Value 354.44b / Total Assets 279.23b)
Interest Expense / Debt = 1.23% (Interest Expense 568.4m / Debt 46.04b)
Taxrate = 22.65% (2.46b / 10.86b)
NOPAT = 31.15b (EBIT 40.28b * (1 - 22.65%))
Current Ratio = 1.29 (Total Current Assets 143.56b / Total Current Liabilities 110.94b)
Debt / Equity = 0.42 (Debt 46.04b / totalStockholderEquity, last quarter 109.54b)
Debt / EBITDA = 0.04 (Net Debt 2.11b / EBITDA 47.49b)
Debt / FCF = 0.07 (Net Debt 2.11b / FCF TTM 29.05b)
Total Stockholder Equity = 95.94b (last 4 quarters mean from totalStockholderEquity)
RoA = 9.61% (Net Income 27.75b / Total Assets 279.23b)
RoE = 28.92% (Net Income TTM 27.75b / Total Stockholder Equity 95.94b)
RoCE = 32.19% (EBIT 40.28b / Capital Employed (Equity 95.94b + L.T.Debt 29.16b))
RoIC = 23.65% (NOPAT 31.15b / Invested Capital 131.75b)
WACC = 7.66% (E(365.05b)/V(411.09b) * Re(8.50%) + D(46.04b)/V(411.09b) * Rd(1.23%) * (1-Tc(0.23)))
Discount Rate = 8.50% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 0.18%
[DCF] Terminal Value 75.85% ; FCFF base≈35.24b ; Y1≈27.58b ; Y5≈17.94b
[DCF] Fair Price = 117.1 (EV 361.82b - Net Debt 2.11b = Equity 359.71b / Shares 3.07b; r=7.66% [WACC]; 5y FCF grow -25.89% → 3.0% )
EPS Correlation: 44.24 | EPS CAGR: 137.7% | SUE: 4.0 | # QB: 2
Revenue Correlation: -31.15 | Revenue CAGR: 5.75% | SUE: -0.18 | # QB: 0
EPS next Quarter (2026-06-30): EPS=0.12 | Chg7d=-0.000 | Chg30d=-0.000 | Revisions Net=+1 | Analysts=2
EPS current Year (2026-12-31): EPS=0.72 | Chg7d=+0.008 | Chg30d=+0.019 | Revisions Net=+5 | Growth EPS=-27.7% | Growth Revenue=-2.1%
EPS next Year (2027-12-31): EPS=0.69 | Chg7d=+0.018 | Chg30d=+0.056 | Revisions Net=+2 | Growth EPS=-4.0% | Growth Revenue=+1.5%
[Analyst] Revisions Ratio: +1.00 (1 Up / 0 Down within 30d for Next Quarter)
[Growth] Implied Growth Rate = 0.6% (Discount Rate 8.5% - Earnings Yield 7.9%)
[Growth] Growth Spread = -2.4% (Analyst -1.8% - Implied 0.6%)