ERIC Stock Analysis: Telefonaktiebolaget LM | NASDAQ
Communication Equipment | NASDAQ, USA | Market Cap: 30.778m USD | 12M Return: 18.4% | US2948216088 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 71.2M
EPS Trend: 92.3%
Qual. Beats: 0
Rev. Trend: -94.3%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC) is a Swedish telecommunications equipment provider founded in 1876 and headquartered in Stockholm. The company supplies mobile connectivity solutions to communications service providers, enterprises, and public sector customers across the Americas, Europe, the Middle East, Africa, Northeast Asia, Southeast Asia, Oceania, and India. Ericsson operates through four segments: Networks (5G radio access networks, transport networks, antennas, and lifecycle services), Cloud Software and Services (core networks, BSS/OSS, and managed services), Enterprise (private 5G, WWAN, and global communications platforms), and Other (RedBee Media for broadcast video services). The company maintains a strategic collaboration with T-Mobile US to develop AI-native Scheduler with Link Adaptation software. As a major player in the communications equipment sector, Ericsson is one of the primary global vendors of mobile network infrastructure alongside competitors such as Nokia and Huawei.
- North America 5G RAN dominance boosts Networks segment revenue
- Cloud Software margins pressured by managed services mix shift
- Enterprise private 5G adoption accelerates across industrial verticals
| Net Income: 24.5b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA -3.57 > 1.0 |
| NWC/Revenue: 6.88% < 20% (prev 4.43%; Δ 2.46% < -1%) |
| CFO/TA 0.12 > 3% & CFO 33.1b > Net Income 24.5b |
| Net Debt (-6.57b) to EBITDA (42.9b): -0.15 < 3 |
| Current Ratio: 1.12 > 1.5 & < 3 |
| Outstanding Shares: last quarter (3.32b) vs 12m ago -0.33% < -2% |
| Gross Margin: 48.13% > 18% (prev 47.16%; Δ 0.97% > 0.5%) |
| Asset Turnover: 82.24% > 50% (prev 89.64%; Δ -7.40% > 0%) |
| Interest Coverage Ratio: 13.59 > 6 (EBIT TTM 35.5b / Interest Expense TTM 2.61b) |
| A: 0.05 (Total Current Assets 147b - Total Current Liabilities 131b) / Total Assets 287b |
| B: 0.23 (Retained Earnings 65.1b / Total Assets 287b) |
| C: 0.13 (EBIT TTM 35.5b / Avg Total Assets 278b) |
| D: 0.57 (Book Value of Equity 104b / Total Liabilities 183b) |
| Altman-Z'' = 2.55 = A |
| DSRI: 1.03 (Receivables 62.1b/63.7b, Revenue 229b/241b) |
| GMI: 0.98 (GM 47.16% / 48.13%) |
| AQI: 0.95 (AQ_t 0.43 / AQ_t-1 0.46) |
| SGI: 0.95 (Revenue 229b / 241b) |
| TATA: -0.03 (NI 24.5b - CFO 33.1b) / TA 287b) |
| Beneish M = -3.09 (Cap -4..+1) = AA |
As of October 13, 2026, the stock is trading at USD 9.37 with a total of 7,595,161 shares traded. Over the past week, the price has changed by +1.63%, over one month by -5.18%, over three months by -18.69% and over the past year by +18.36%.
Current recommended Stop Loss: 9.10 (which is 2.9% or 1.4 ATR below the current price).
Telefonaktiebolaget LM has received a consensus analysts rating of 2.14. Therefore, it is recommended to sell ERIC.
- StrongBuy: 0
- Buy: 0
- Hold: 3
- Sell: 2
- StrongSell: 2
| Analysts Target Price | 9.1 | -2.6% |
Market Cap SEK = 309b (30.8b USD * 10.037 USD.SEK)
P/E Trailing = 11.9747
P/E Forward = 18.018
P/S = 1.4184
P/B = 3.0335
P/EG = 3.5323
Revenue TTM = 229b SEK
EBIT TTM = 35.5b SEK
EBITDA TTM = 42.9b SEK
Long Term Debt = 22.0b SEK (from longTermDebt, last quarter)
Short Term Debt = 11.2b SEK (from shortTermDebt, last quarter)
Debt = 47.4b SEK (from shortLongTermDebtTotal, last quarter) + Leases 8.02b
Net Debt = -6.57b SEK (calculated: Debt 47.4b - CCE 54.0b)
Enterprise Value = 302b SEK (309b + Debt 47.4b - CCE 54.0b)
Interest Coverage Ratio = 13.59 (Ebit TTM 35.5b / Interest Expense TTM 2.61b)
EV/FCF = 9.93x (Enterprise Value 302b / FCF TTM 30.4b)
FCF Yield = 10.07% (FCF TTM 30.4b / Enterprise Value 302b)
FCF Margin = 13.31% (FCF TTM 30.4b / Revenue TTM 229b)
Net Margin = 10.70% (Net Income TTM 24.5b / Revenue TTM 229b)
Gross Margin = 48.13% ((Revenue TTM 229b - Cost of Revenue TTM 119b) / Revenue TTM)
Gross Margin QoQ = 48.36% (prev 48.11%)
Tobins Q-Ratio = 1.05 (Enterprise Value 302b / Total Assets 287b)
Interest Expense / Debt = 5.50% (Interest Expense 2.61b / Debt 47.4b)
Taxrate = 24.81% (8.14b / 32.8b)
NOPAT = 26.7b (EBIT 35.5b * (1 - 24.81%))
Current Ratio = 1.12 (Total Current Assets 147b / Total Current Liabilities 131b)
Debt / Equity = 0.46 (Debt 47.4b / totalStockholderEquity, last quarter 104b)
Debt / EBITDA = -0.15 (Net Debt -6.57b / EBITDA 42.9b)
Debt / FCF = -0.22 (Net Debt -6.57b / FCF TTM 30.4b)
Total Stockholder Equity = 104b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.80% (Net Income 24.5b / Total Assets 287b)
RoE = 23.45% (Net Income TTM 24.5b / Total Stockholder Equity 104b)
RoCE = 28.06% (EBIT 35.5b / Capital Employed (Equity 104b + L.T.Debt 22.0b))
RoIC = 17.09% (NOPAT 26.7b / Invested Capital 156b)
WACC = 7.37% (E(309b)/V(356b) * Re(7.87%) + D(47.4b)/V(356b) * Rd(5.50%) * (1-Tc(0.25)))
Discount Rate = 7.87% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -9.50 | Cagr: -0.17%
[DCF] Terminal Value 73.10% ; FCFF base≈33.5b ; Y1≈29.4b ; Y5≈23.7b
[DCF] Fair Price = 129.6 (EV 381b - Net Debt -6.57b = Equity 388b / Shares 2.99b; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 92.27 | EPS CAGR: 50.58% | SUE: 0.0 | # QB: 0
Revenue Correlation: -94.30 | Revenue CAGR: -5.67% | SUE: 0.01 | # QB: 0
EPS current Quarter (2026-09-30): EPS=0.14 | Chg30d=-4.57% | Revisions=-25% | Analysts=3
EPS current Year (2026-12-31): EPS=0.57 | Chg30d=-3.71% | Revisions=+0% | GrowthEPS=-43.2% | GrowthRev=-4.5%
EPS next Year (2027-12-31): EPS=0.61 | Chg30d=-1.89% | Revisions=+0% | GrowthEPS=+7.6% | GrowthRev=+2.3%
[Analyst] Revisions Ratio: -12% (up=2, down=3)