(ERIC) Telefonaktiebolaget LM - Overview
Sector: Technology | Industry: Communication Equipment | Exchange: NASDAQ (USA) | Market Cap: 42.474m USD | Total Return: 60.7% in 12m
Avg Turnover: 88.6M
EPS Trend: 54.6%
Qual. Beats: 0
Rev. Trend: -94.5%
Qual. Beats: 0
Warnings
Extended 1w
Tailwinds
No distinct edge detected
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
| 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 (46.2b): -0.34 < 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 46.2b / 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: 0.14 (EBIT TTM 39.5b / Avg Total Assets 283b) |
| D: 0.35 (Book Value of Equity 65.1b / Total Liabilities 186b) |
| Altman-Z'' = 2.41 = A |
| DSRI: 1.01 (Receivables 62.3b/65.9b, Revenue 229b/245b) |
| GMI: 0.96 (GM 48.05% / 46.18%) |
| 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 = -3.14 (Cap -4..+1) = AA |
As of May 25, 2026, the stock is trading at USD 13.50 with a total of 10,829,837 shares traded.
Over the past week, the price has changed by +8.00%,
over one month by +19.79%,
over three months by +24.19% and
over the past year by +60.72%.
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 | -22.6% |
Market Cap SEK = 395b (42.5b USD * 9.3006 USD.SEK)
P/E Trailing = 15.975
P/E Forward = 21.2314
P/S = 1.5919
P/B = 3.5728
P/EG = 3.5323
Revenue TTM = 229b SEK
EBIT TTM = 39.5b SEK
EBITDA TTM = 46.2b 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 = 379b SEK (395b + Debt 47.0b - CCE 62.7b)
Interest Coverage Ratio = 14.03 (Ebit TTM 39.5b / Interest Expense TTM 2.82b)
EV/FCF = 11.61x (Enterprise Value 379b / FCF TTM 32.7b)
FCF Yield = 8.62% (FCF TTM 32.7b / Enterprise Value 379b)
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 = 1.31 (Enterprise Value 379b / Total Assets 289b)
Interest Expense / Debt = 6.00% (Interest Expense 2.82b / Debt 47.0b)
Taxrate = 28.96% (375.2m / 1.30b)
NOPAT = 28.1b (EBIT 39.5b * (1 - 28.96%))
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 = -0.34 (Net Debt -15.8b / EBITDA 46.2b)
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 = 32.52% (EBIT 39.5b / Capital Employed (Equity 100.0b + L.T.Debt 21.5b))
RoIC = 16.91% (NOPAT 28.1b / Invested Capital 166b)
WACC = 7.72% (E(395b)/V(442b) * Re(8.13%) + D(47.0b)/V(442b) * Rd(6.00%) * (1-Tc(0.29)))
Discount Rate = 8.13% (= 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 = 142.0 (EV 419b - Net Debt -15.8b = Equity 435b / Shares 3.06b; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 54.63 | EPS CAGR: 116.3% | SUE: 0.02 | # QB: 0
Revenue Correlation: -94.53 | Revenue CAGR: -6.55% | 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%