(ERIC) Telefonaktiebolaget LM - Overview
Stock: Radios, Core Networks, IoT Connectivity, Broadcast Software
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 3.49% |
| Yield on Cost 5y | 2.53% |
| Yield CAGR 5y | 4.16% |
| Payout Consistency | 79.8% |
| Payout Ratio | 8.2% |
| Risk 5d forecast | |
|---|---|
| Volatility | 31.2% |
| Relative Tail Risk | -13.9% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 1.28 |
| Alpha | 41.81 |
| Character TTM | |
|---|---|
| Beta | 0.644 |
| Beta Downside | 0.846 |
| Drawdowns 3y | |
|---|---|
| Max DD | 25.04% |
| CAGR/Max DD | 1.19 |
Description: ERIC Telefonaktiebolaget LM December 17, 2025
Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC) supplies end-to-end mobile connectivity solutions to telecom operators, enterprises, and public-sector customers, organized into four segments: Networks, Cloud Software & Services, Enterprise, and Other (which includes RedBee Media’s video-distribution business). Its Networks segment covers the full radio access network (RAN) stack-antennas, radios, baseband compute, and software-plus transport, deployment services, and ongoing network optimization.
The Cloud Software & Services segment delivers core-network infrastructure, business-support systems, and AI-driven network-management tools, while the Enterprise segment focuses on private 5G, IoT connectivity, and vehicular communications. Ericsson operates globally across North America, Europe, Latin America, the Middle East, Africa, Northeast and Southeast Asia, Oceania, and India, reflecting a diversified geographic revenue mix.
Key recent metrics: FY 2023 revenue reached $27.1 billion, with the Networks segment contributing ~ 65 % and a year-over-year growth of 3 % driven by 5G roll-outs; R&D spend was $2.7 billion (≈ 10 % of revenue), underscoring its focus on next-gen radio and cloud-native solutions; and the company’s 5G market share in Europe remained above 30 %, a critical driver as operators accelerate capex to meet demand for higher-speed mobile services. Macro-level, global telecom capex is projected to grow ~ 5 % CAGR through 2027, primarily fueled by 5G expansion and edge-computing initiatives, which directly benefit Ericsson’s product pipeline.
For a deeper quantitative assessment, see the ValueRay analysis of ERIC.
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 4769 % > 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) |
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?
Over the past week, the price has changed by +2.43%, over one month by +15.16%, over three months by +6.52% and over the past year by +51.58%.
Is ERIC a buy, sell or hold?
- 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 | 9.9 | -10.9% |
| Analysts Target Price | 9.9 | -10.9% |
| ValueRay Target Price | 11.5 | 3.6% |
ERIC Fundamental Data Overview February 01, 2026
P/E Forward = 14.9031
P/S = 1.3545
P/B = 2.9193
P/EG = 3.5323
Revenue TTM = 229.96b USD
EBIT TTM = 40.28b USD
EBITDA TTM = 47.49b USD
Long Term Debt = 29.87b USD (from longTermDebt, two quarters ago)
Short Term Debt = 5.33b USD (from shortTermDebt, last quarter)
Debt = 46.04b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 2.11b USD (from netDebt column, last quarter)
Enterprise Value = 26.34b USD (36.94b + Debt 46.04b - CCE 56.64b)
Interest Coverage Ratio = 13.62 (Ebit TTM 40.28b / Interest Expense TTM 2.96b)
EV/FCF = 0.91x (Enterprise Value 26.34b / FCF TTM 29.05b)
FCF Yield = 110.3% (FCF TTM 29.05b / Enterprise Value 26.34b)
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 = 0.09 (Enterprise Value 26.34b / 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 = 32.01% (EBIT 40.28b / Capital Employed (Equity 95.94b + L.T.Debt 29.87b))
RoIC = 24.29% (NOPAT 31.15b / Invested Capital 128.25b)
WACC = 4.23% (E(36.94b)/V(82.98b) * Re(8.32%) + D(46.04b)/V(82.98b) * Rd(1.23%) * (1-Tc(0.23)))
Discount Rate = 8.32% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 100.0 | Cagr: 0.18%
[DCF Debug] Terminal Value 83.48% ; FCFF base≈35.24b ; Y1≈27.58b ; Y5≈17.89b
Fair Price DCF = 179.0 (EV 551.92b - Net Debt 2.11b = Equity 549.81b / Shares 3.07b; r=5.90% [WACC]; 5y FCF grow -25.89% → 2.90% )
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 (2026-03-31): EPS=0.10 | Chg30d=+0.008 | Revisions Net=+1 | Analysts=2
EPS current Year (2026-12-31): EPS=0.70 | Chg30d=+0.111 | Revisions Net=+2 | Growth EPS=-29.6% | Growth Revenue=-2.1%
EPS next Year (2027-12-31): EPS=0.64 | Chg30d=+0.046 | Revisions Net=+1 | Growth EPS=-9.3% | Growth Revenue=+1.4%