(ERIC-B) Telefonaktiebolaget LM - ST
Sector: Technology | Industry: Communication Equipment | Exchange: ST (Sweden) | Market Cap: 368.992m SEK | Total Return: 40.9% in 12m
Avg Turnover: 957M
EPS Trend: 72.8%
Qual. Beats: 0
Rev. Trend: -93.7%
Qual. Beats: -1
Warnings
Below Avwap Earnings
Tailwinds
Idiosyncratic Leader
Telefonaktiebolaget LM Ericsson (publ) is a Sweden-based provider of mobile connectivity infrastructure and software services. The company operates across four primary segments: Networks, Cloud Software and Services, Enterprise, and Other. Its core business involves the development of 5G Radio Access Network (RAN) hardware, AI-native software architectures, and core network management systems for telecommunications providers and private enterprises globally.
The company utilizes a business model centered on high-barrier-to-entry infrastructure, where revenue is generated through equipment sales, long-term software licensing, and lifecycle management services. As a key player in the telecommunications equipment sector, Ericsson competes in a consolidated market where R&D investment in silicon and AI-driven network orchestration is essential for maintaining technological parity in 5G and emerging 6G standards.
Ericsson’s Enterprise segment focuses on specialized solutions such as Wireless Wide Area Networks (WWAN) and global communications platforms. To enhance network efficiency, the company engages in strategic collaborations with major carriers to develop AI-native scheduling tools, facilitating automated link adaptation and energy-efficient network operations across diverse geographic regions.
- 5G RAN demand stabilizes as North American carrier spending recovers
- Vonage integration and API platform scale drive Enterprise segment growth
- Cloud Software and Services margins expand through operational efficiency
- AT&T contract win secures long-term market share against regional rivals
| Net Income: 25.2b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA -3.65 > 1.0 |
| NWC/Revenue: 7.09% < 20% (prev 4.77%; Δ 2.32% < -1%) |
| CFO/TA 0.12 > 3% & CFO 35.8b > Net Income 25.2b |
| Net Debt (-15.9b) to EBITDA (47.1b): -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 45.56%; Δ 2.49% > 0.5%) |
| Asset Turnover: 81.28% > 50% (prev 89.78%; Δ -8.50% > 0%) |
| Interest Coverage Ratio: 14.15 > 6 (EBIT TTM 40.0b / Interest Expense TTM 2.82b) |
| A: 0.06 (Total Current Assets 151b - Total Current Liabilities 135b) / Total Assets 290b |
| B: 0.22 (Retained Earnings 65.1b / Total Assets 290b) |
| C: 0.14 (EBIT TTM 40.0b / Avg Total Assets 284b) |
| D: 0.55 (Book Value of Equity 102b / Total Liabilities 187b) |
| Altman-Z'' = 2.62 = A |
| DSRI: 1.06 (Receivables 62.6b/63.7b, Revenue 231b/250b) |
| GMI: 0.95 (GM 45.56% / 48.05%) |
| AQI: 0.99 (AQ_t 0.42 / AQ_t-1 0.43) |
| SGI: 0.93 (Revenue 231b / 250b) |
| TATA: -0.04 (NI 25.2b - CFO 35.8b) / TA 290b) |
| Beneish M = -3.08 (Cap -4..+1) = AA |
As of June 20, 2026, the stock is trading at SEK 109.95 with a total of 10,010,194 shares traded.
Over the past week, the price has changed by -2.79%,
over one month by -8.03%,
over three months by +4.03% and
over the past year by +40.88%.
Telefonaktiebolaget LM has no consensus analysts rating.
P/E Trailing = 14.748
P/E Forward = 21.1864
P/S = 1.5975
P/B = 3.5551
P/EG = 1.9301
Revenue TTM = 231b SEK
EBIT TTM = 40.0b SEK
EBITDA TTM = 47.1b SEK
Long Term Debt = 21.5b SEK (from longTermDebt, last quarter)
Short Term Debt = 11.6b SEK (from shortTermDebt, last quarter)
Debt = 47.2b SEK (from shortLongTermDebtTotal, last quarter) + Leases 7.88b
Net Debt = -15.9b SEK (calculated: Debt 47.2b - CCE 63.1b)
Enterprise Value = 353b SEK (369b + Debt 47.2b - CCE 63.1b)
Interest Coverage Ratio = 14.15 (Ebit TTM 40.0b / Interest Expense TTM 2.82b)
EV/FCF = 10.61x (Enterprise Value 353b / FCF TTM 33.3b)
FCF Yield = 9.43% (FCF TTM 33.3b / Enterprise Value 353b)
FCF Margin = 14.41% (FCF TTM 33.3b / Revenue TTM 231b)
Net Margin = 10.90% (Net Income TTM 25.2b / Revenue TTM 231b)
Gross Margin = 48.05% ((Revenue TTM 231b - Cost of Revenue TTM 120b) / Revenue TTM)
Gross Margin QoQ = 48.11% (prev 47.98%)
Tobins Q-Ratio = 1.22 (Enterprise Value 353b / Total Assets 290b)
Interest Expense / Debt = 5.99% (Interest Expense 2.82b / Debt 47.2b)
Taxrate = 24.66% (8.31b / 33.7b)
NOPAT = 30.1b (EBIT 40.0b * (1 - 24.66%))
Current Ratio = 1.12 (Total Current Assets 151b / Total Current Liabilities 135b)
Debt / Equity = 0.46 (Debt 47.2b / totalStockholderEquity, last quarter 102b)
Debt / EBITDA = -0.34 (Net Debt -15.9b / EBITDA 47.1b)
Debt / FCF = -0.48 (Net Debt -15.9b / FCF TTM 33.3b)
Total Stockholder Equity = 100b (last 4 quarters mean from totalStockholderEquity)
RoA = 8.86% (Net Income 25.2b / Total Assets 290b)
RoE = 25.11% (Net Income TTM 25.2b / Total Stockholder Equity 100b)
RoCE = 32.82% (EBIT 40.0b / Capital Employed (Equity 100b + L.T.Debt 21.5b))
RoIC = 19.37% (NOPAT 30.1b / Invested Capital 155b)
WACC = 7.26% (E(369b)/V(416b) * Re(7.61%) + D(47.2b)/V(416b) * Rd(5.99%) * (1-Tc(0.25)))
Discount Rate = 7.61% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 61.38 | Cagr: 0.17%
[DCF] Terminal Value 73.10% ; FCFF base≈36.8b ; Y1≈32.3b ; Y5≈26.1b
[DCF] Fair Price = 142.1 (EV 418b - Net Debt -15.9b = Equity 434b / Shares 3.06b; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: 72.77 | EPS CAGR: 29.30% | SUE: -0.11 | # QB: 0
Revenue Correlation: -93.66 | Revenue CAGR: -5.95% | SUE: -1.13 | # QB: -1
EPS current Quarter (2026-06-30): EPS=1.34 | Chg30d=-3.32% | Revisions=+0% | Analysts=6
EPS next Quarter (2026-09-30): EPS=1.57 | Chg30d=-4.18% | Revisions=-25% | Analysts=6
EPS current Year (2026-12-31): EPS=6.52 | Chg30d=+0.00% | Revisions=-33% | GrowthEPS=-27.8% | GrowthRev=-3.9%
EPS next Year (2027-12-31): EPS=7.17 | Chg30d=+0.00% | Revisions=+0% | GrowthEPS=+10.1% | GrowthRev=+1.3%
[Analyst] Revisions Ratio: -33%