ERIC-B Stock Analysis: Telefonaktiebolaget LM | ST
Communication Equipment | ST, Sweden | Market Cap: 316.369m SEK | 12M Return: 32% | SE0000108656 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 725M
EPS Trend: 93.0%
Qual. Beats: 0
Rev. Trend: -94.0%
Qual. Beats: -2
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.6 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 is a Swedish-founded (1876) telecommunications equipment vendor headquartered in Stockholm, operating as a business-to-business supplier of mobile network infrastructure, software, and services to communications service providers, enterprises, and public-sector customers across the Americas, Europe, the Middle East, Africa, and Asia-Pacific (including India). The company reports through four segments: Networks (5G radio access network hardware and software, antennas, transport, and deployment/lifecycle services), Cloud Software and Services (core networks, BSS/OSS, and managed network operations), Enterprise (private 5G, wireless wide area networks, and a global communications platform), and Other (RedBee Media, which prepares and distributes broadcast and on-demand video).
Its business model is anchored in long-cycle infrastructure sales and recurring managed-services revenue to mobile carriers, with a growing push into enterprise private networks. Ericsson maintains a strategic collaboration with T-Mobile US on an AI-native Scheduler with Link Adaptation product.
- 5G RAN demand from North American carriers drives Networks segment growth
- Cloud Software margins under pressure as operators cut managed services spend
- Enterprise private 5G sales accelerate but remain small versus Networks revenue
- Nokia and Huawei competition intensifies in cost-sensitive emerging markets
| 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 August 25, 2026, the stock is trading at SEK 96.72 with a total of 4,874,239 shares traded. Over the past week, the price has changed by -0.43%, over one month by +5.68%, over three months by -23.18% and over the past year by +31.98%.
Current recommended Stop Loss: 94.20 (which is 2.6% or 1.2 ATR below the current price).
Telefonaktiebolaget LM has no consensus analysts rating.
P/E Trailing = 13.0949
P/E Forward = 21.097
P/S = 1.3904
P/B = 3.04
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 = 310b SEK (316b + Debt 47.5b - CCE 54.1b)
Interest Coverage Ratio = 15.18 (Ebit TTM 39.1b / Interest Expense TTM 2.58b)
EV/FCF = 9.99x (Enterprise Value 310b / FCF TTM 31.0b)
FCF Yield = 10.01% (FCF TTM 31.0b / Enterprise Value 310b)
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 = 1.08 (Enterprise Value 310b / 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 = 6.75% (E(316b)/V(364b) * Re(7.15%) + D(47.5b)/V(364b) * Rd(5.43%) * (1-Tc(0.25)))
Discount Rate = 7.15% (= 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 = 128.3 (EV 380b - Net Debt -6.61b = Equity 387b / Shares 3.01b; 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=1.55 | Chg30d=-1.66% | Revisions=+0% | Analysts=5
EPS current Year (2026-12-31): EPS=6.35 | Chg30d=-2.59% | Revisions=-39% | GrowthEPS=-29.7% | GrowthRev=-4.5%
EPS next Year (2027-12-31): EPS=6.86 | Chg30d=-4.48% | Revisions=-47% | GrowthEPS=+8.0% | GrowthRev=+1.9%
[Analyst] Revisions Ratio: -42% (up=9, down=24)