ERIC-B Stock Analysis: Telefonaktiebolaget LM | ST
Communication Equipment | ST, Sweden | Market Cap: 306.541m SEK | 12M Return: 25.2% | SE0000108656 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 800M
EPS Trend: 93.0%
Qual. Beats: 0
Rev. Trend: -94.0%
Qual. Beats: -2
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.
Ericsson (ST: ERIC-B) is a Stockholm-headquartered provider of mobile connectivity solutions, founded in 1876 and operating globally across the Americas, Europe, the Middle East, Africa, and Asia-Pacific, including India. The company organizes its business into four segments: Networks (5G hardware, software, energy-efficient Radio Access Networks (RAN), antennas, and lifecycle services), Cloud Software and Services (core networks, business and operations support systems, and managed network services), Enterprise (private 5G, wireless wide area networks, and global communications platforms), and Other (including RedBee Media, which handles live and on-demand video distribution).
The company maintains a strategic collaboration with T-Mobile US to develop AI-native Scheduler with Link Adaptation software. Ericsson operates in the global telecommunications equipment and infrastructure sector, where it is one of the principal vendors of mobile network gear alongside competitors such as Nokia, Huawei, and Samsung, with a particular focus on 5G RAN deployments and the emerging private 5G market for enterprise customers.
- 5G Networks segment revenue growth accelerates on operator capex
- Cloud Software and Services margins expand with managed services scale
- Enterprise private 5G deals diversify revenue beyond telecom operators
- Competition from Nokia and Huawei pressures RAN market share
- India and Southeast Asia 5G rollout drives volume growth
| Net Income: 24.6b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA -2.92 > 1.0 |
| NWC/Revenue: 6.94% < 20% (prev 4.37%; Δ 2.57% < -1%) |
| CFO/TA 0.12 > 3% & CFO 33.6b > Net Income 24.6b |
| Net Debt (-6.61b) to EBITDA (46.1b): -0.14 < 3 |
| Current Ratio: 1.12 > 1.5 & < 3 |
| Outstanding Shares: last quarter (3.32b) vs 12m ago -0.63% < -2% |
| Gross Margin: 48.13% > 18% (prev 46.52%; Δ 1.60% > 0.5%) |
| Asset Turnover: 81.49% > 50% (prev 90.87%; Δ -9.38% > 0%) |
| Interest Coverage Ratio: 15.18 > 6 (EBIT TTM 39.1b / Interest Expense TTM 2.58b) |
| A: 0.05 (Total Current Assets 147b - Total Current Liabilities 131b) / Total Assets 288b |
| B: 0.23 (Retained Earnings 65.1b / Total Assets 288b) |
| C: 0.14 (EBIT TTM 39.1b / Avg Total Assets 279b) |
| D: 0.57 (Book Value of Equity 104b / Total Liabilities 183b) |
| Altman-Z'' = 2.64 = A |
| DSRI: 1.41 (Receivables 62.3b/47.6b, Revenue 228b/246b) |
| GMI: 0.97 (GM 46.52% / 48.13%) |
| AQI: 0.95 (AQ_t 0.43 / AQ_t-1 0.46) |
| SGI: 0.93 (Revenue 228b / 246b) |
| TATA: -0.03 (NI 24.6b - CFO 33.6b) / TA 288b) |
| Beneish M = -2.80 (Cap -4..+1) = A |
As of October 10, 2026, the stock is trading at SEK 95.98 with a total of 11,838,802 shares traded. Over the past week, the price has changed by +3.00%, over one month by +0.77%, over three months by -13.20% and over the past year by +25.18%.
Current recommended Stop Loss: 93.60 (which is 2.5% or 1.1 ATR below the current price).
Telefonaktiebolaget LM has no consensus analysts rating.
P/E Trailing = 12.7669
P/E Forward = 18.1488
P/S = 1.3472
P/B = 3.0542
P/EG = 1.9301
Revenue TTM = 228b SEK
EBIT TTM = 39.1b SEK
EBITDA TTM = 46.1b SEK
Long Term Debt = 22.0b SEK (from longTermDebt, last quarter)
Short Term Debt = 11.2b SEK (from shortTermDebt, last quarter)
Debt = 47.5b SEK (from shortLongTermDebtTotal, last quarter) + Leases 8.02b
Net Debt = -6.61b SEK (calculated: Debt 47.5b - CCE 54.1b)
Enterprise Value = 300b SEK (307b + Debt 47.5b - CCE 54.1b)
Interest Coverage Ratio = 15.18 (Ebit TTM 39.1b / Interest Expense TTM 2.58b)
EV/FCF = 9.68x (Enterprise Value 300b / FCF TTM 31.0b)
FCF Yield = 10.33% (FCF TTM 31.0b / Enterprise Value 300b)
FCF Margin = 13.62% (FCF TTM 31.0b / Revenue TTM 228b)
Net Margin = 10.83% (Net Income TTM 24.6b / Revenue TTM 228b)
Gross Margin = 48.13% ((Revenue TTM 228b - Cost of Revenue TTM 118b) / Revenue TTM)
Gross Margin QoQ = 48.36% (prev 48.11%)
Tobins Q-Ratio = 1.04 (Enterprise Value 300b / Total Assets 288b)
Interest Expense / Debt = 5.43% (Interest Expense 2.58b / Debt 47.5b)
Taxrate = 24.77% (8.18b / 33.0b)
NOPAT = 29.4b (EBIT 39.1b * (1 - 24.77%))
Current Ratio = 1.12 (Total Current Assets 147b / Total Current Liabilities 131b)
Debt / Equity = 0.46 (Debt 47.5b / totalStockholderEquity, last quarter 104b)
Debt / EBITDA = -0.14 (Net Debt -6.61b / EBITDA 46.1b)
Debt / FCF = -0.21 (Net Debt -6.61b / FCF TTM 31.0b)
Total Stockholder Equity = 105b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.83% (Net Income 24.6b / Total Assets 288b)
RoE = 23.57% (Net Income TTM 24.6b / Total Stockholder Equity 105b)
RoCE = 30.92% (EBIT 39.1b / Capital Employed (Equity 105b + L.T.Debt 22.0b))
RoIC = 18.82% (NOPAT 29.4b / Invested Capital 156b)
WACC = 6.61% (E(307b)/V(354b) * Re(7.0%) + D(47.5b)/V(354b) * Rd(5.43%) * (1-Tc(0.25)))
Discount Rate = 7.0% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -6.14 | Cagr: -0.17%
[DCF] Terminal Value 73.10% ; FCFF base≈33.4b ; Y1≈29.3b ; Y5≈23.7b
[DCF] Fair Price = 129.2 (EV 380b - Net Debt -6.61b = Equity 387b / Shares 2.99b; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 93.02 | EPS CAGR: 42.79% | SUE: -0.23 | # QB: 0
Revenue Correlation: -94.03 | Revenue CAGR: -5.51% | SUE: -0.87 | # QB: -2
EPS current Quarter (2026-09-30): EPS=1.44 | Chg30d=-6.87% | Revisions=-25% | Analysts=6
EPS current Year (2026-12-31): EPS=6.57 | Chg30d=+0.33% | Revisions=+0% | GrowthEPS=-27.2% | GrowthRev=-4.5%
EPS next Year (2027-12-31): EPS=6.94 | Chg30d=+0.96% | Revisions=+0% | GrowthEPS=+5.7% | GrowthRev=+2.3%
[Analyst] Revisions Ratio: -12% (up=2, down=3)