(ERIC) Telefonaktiebolaget LM - Ratings and Ratios
Networks, Cloud Software, Enterprise, Radio Access, Managed Services
ERIC EPS (Earnings per Share)
ERIC Revenue
Description: ERIC Telefonaktiebolaget LM
Telefonaktiebolaget LM Ericsson B ADR (NASDAQ:ERIC) is a leading provider of mobile connectivity solutions to various sectors including communications service providers, enterprises, and the public sector. The company operates through multiple segments: Networks, Cloud Software and Services, Enterprise, and Other, offering a diverse range of products and services such as radio access network products, transport solutions, and private cellular networks.
From a business perspective, ERICs revenue streams are diversified across different regions including North America, Europe, Latin America, and Asia, reducing dependence on any single market. The companys product portfolio is also diversified, with a mix of hardware, software, and services, which can provide a competitive edge. Key performance indicators (KPIs) to watch include revenue growth, segment-wise profitability, and the companys ability to expand its customer base in the enterprise and public sector segments.
Analyzing ERICs financial health, the companys high P/E ratio of 160.80 suggests that the stock may be overvalued relative to its current earnings. However, the forward P/E of 15.72 indicates expected earnings growth, potentially driven by the increasing demand for 5G infrastructure and private cellular networks. The low Return on Equity (RoE) of 1.84% may indicate inefficiencies in generating profits from shareholder equity. Other important metrics to consider include the companys debt-to-equity ratio, operating margin, and cash flow generation capabilities.
In terms of growth prospects, ERIC is well-positioned to benefit from the growing demand for 5G networks, IoT applications, and private cellular networks. The companys strong presence in the global market, coupled with its diversified product portfolio, can help drive future growth. Investors should monitor the companys progress in securing new contracts, its research and development efforts, and its ability to adapt to changing market trends.
ERIC Stock Overview
| Market Cap in USD | 26,714m |
| Sub-Industry | Communications Equipment |
| IPO / Inception | 1989-09-28 |
ERIC Stock Ratings
| Growth Rating | 18.0% |
| Fundamental | 51.0% |
| Dividend Rating | 66.5% |
| Return 12m vs S&P 500 | -5.12% |
| Analyst Rating | 2.75 of 5 |
ERIC Dividends
| Dividend Yield 12m | 5.14% |
| Yield on Cost 5y | 4.54% |
| Annual Growth 5y | 9.96% |
| Payout Consistency | 73.8% |
| Payout Ratio | 67.6% |
ERIC Growth Ratios
| Growth Correlation 3m | -21.4% |
| Growth Correlation 12m | 8.6% |
| Growth Correlation 5y | -46.4% |
| CAGR 5y | 12.93% |
| CAGR/Max DD 3y | 0.42 |
| CAGR/Mean DD 3y | 1.23 |
| Sharpe Ratio 12m | 0.77 |
| Alpha | 0.09 |
| Beta | 0.497 |
| Volatility | 29.65% |
| Current Volume | 13262.5k |
| Average Volume 20d | 9563.8k |
| Stop Loss | 7.7 (-3.8%) |
| Signal | 0.77 |
Piotroski VR‑10 (Strict, 0-10) 6.0
| Net Income (17.37b TTM) > 0 and > 6% of Revenue (6% = 14.75b TTM) |
| FCFTA 0.14 (>2.0%) and ΔFCFTA 4.03pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 4.37% (prev 7.26%; Δ -2.90pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.15 (>3.0%) and CFO 40.42b > Net Income 17.37b (YES >=105%, WARN >=100%) |
| Net Debt (2.87b) to EBITDA (14.79b) ratio: 0.19 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.09 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (3.33b) change vs 12m ago 0.03% (target <= -2.0% for YES) |
| Gross Margin 46.40% (prev 41.64%; Δ 4.76pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 89.56% (prev 89.60%; Δ -0.04pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 2.68 (EBITDA TTM 14.79b / Interest Expense TTM 3.16b) >= 6 (WARN >= 3) |
Altman Z'' 1.37
| (A) 0.04 = (Total Current Assets 131.48b - Total Current Liabilities 120.74b) / Total Assets 270.56b |
| (B) 0.16 = Retained Earnings (Balance) 42.30b / Total Assets 270.56b |
| (C) 0.03 = EBIT TTM 8.46b / Avg Total Assets 274.52b |
| (D) 0.38 = Book Value of Equity 69.55b / Total Liabilities 184.86b |
| Total Rating: 1.37 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 51.00
| 1. Piotroski 6.0pt = 1.0 |
| 2. FCF Yield 14.93% = 5.0 |
| 3. FCF Margin 14.98% = 3.75 |
| 4. Debt/Equity 0.45 = 2.40 |
| 5. Debt/Ebitda 2.64 = -1.21 |
| 6. ROIC - WACC (= -5.84)% = -7.30 |
| 7. RoE 19.64% = 1.64 |
| 8. Rev. Trend -54.02% = -4.05 |
| 9. EPS Trend -4.32% = -0.22 |
What is the price of ERIC shares?
Over the past week, the price has changed by +0.50%, over one month by +4.03%, over three months by -3.38% and over the past year by +12.46%.
Is Telefonaktiebolaget LM a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of ERIC is around 7.36 USD . This means that ERIC is currently overvalued and has a potential downside of -8%.
Is ERIC a buy, sell or hold?
- Strong Buy: 0
- Buy: 1
- Hold: 4
- Sell: 3
- Strong Sell: 0
What are the forecasts/targets for the ERIC price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 7.8 | -2.1% |
| Analysts Target Price | 7.8 | -2.1% |
| ValueRay Target Price | 8.1 | 1.1% |
Last update: 2025-09-08 04:37
ERIC Fundamental Data Overview
CCE Cash And Equivalents = 40.41b SEK (Cash And Short Term Investments, last quarter)
P/E Trailing = 14.5636
P/E Forward = 14.1243
P/S = 0.1087
P/B = 2.9015
P/EG = 3.5323
Beta = 0.453
Revenue TTM = 245.86b SEK
EBIT TTM = 8.46b SEK
EBITDA TTM = 14.79b SEK
Long Term Debt = 29.94b SEK (from longTermDebt, last quarter)
Short Term Debt = 9.15b SEK (from shortTermDebt, last quarter)
Debt = 39.10b SEK (Calculated: Short Term 9.15b + Long Term 29.94b)
Net Debt = 2.87b SEK (from netDebt column, last quarter)
Enterprise Value = 246.66b SEK (247.97b + Debt 39.10b - CCE 40.41b)
Interest Coverage Ratio = 2.68 (Ebit TTM 8.46b / Interest Expense TTM 3.16b)
FCF Yield = 14.93% (FCF TTM 36.83b / Enterprise Value 246.66b)
FCF Margin = 14.98% (FCF TTM 36.83b / Revenue TTM 245.86b)
Net Margin = 7.06% (Net Income TTM 17.37b / Revenue TTM 245.86b)
Gross Margin = 46.40% ((Revenue TTM 245.86b - Cost of Revenue TTM 131.79b) / Revenue TTM)
Tobins Q-Ratio = 3.55 (Enterprise Value 246.66b / Book Value Of Equity 69.55b)
Interest Expense / Debt = 2.37% (Interest Expense 927.0m / Debt 39.10b)
Taxrate = 85.55% (2.21b / 2.59b)
NOPAT = 1.22b (EBIT 8.46b * (1 - 85.55%))
Current Ratio = 1.09 (Total Current Assets 131.48b / Total Current Liabilities 120.74b)
Debt / Equity = 0.45 (Debt 39.10b / last Quarter total Stockholder Equity 86.75b)
Debt / EBITDA = 2.64 (Net Debt 2.87b / EBITDA 14.79b)
Debt / FCF = 1.06 (Debt 39.10b / FCF TTM 36.83b)
Total Stockholder Equity = 88.43b (last 4 quarters mean)
RoA = 6.42% (Net Income 17.37b, Total Assets 270.56b )
RoE = 19.64% (Net Income TTM 17.37b / Total Stockholder Equity 88.43b)
RoCE = 7.15% (Ebit 8.46b / (Equity 88.43b + L.T.Debt 29.94b))
RoIC = 0.98% (NOPAT 1.22b / Invested Capital 125.29b)
WACC = 6.82% (E(247.97b)/V(287.07b) * Re(7.84%)) + (D(39.10b)/V(287.07b) * Rd(2.37%) * (1-Tc(0.86)))
Shares Correlation 3-Years: 17.34 | Cagr: -0.00%
Discount Rate = 7.84% (= CAPM, Blume Beta Adj.) -> floored to rf + ERP 8.05%
[DCF Debug] Terminal Value 73.78% ; FCFE base≈32.78b ; Y1≈25.16b ; Y5≈15.73b
Fair Price DCF = 96.11 (DCF Value 295.20b / Shares Outstanding 3.07b; 5y FCF grow -27.63% → 3.0% )
EPS Correlation: -4.32 | EPS CAGR: 0.0% | SUE: 0.24 | # QB: 0
Revenue Correlation: -54.02 | Revenue CAGR: -6.76% | SUE: -0.13 | # QB: 0
Additional Sources for ERIC Stock
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