(ERIC-B) Telefonaktiebolaget LM - Ratings and Ratios
Networks, Cloud Software, Enterprise Solutions, Radio Access
ERIC-B EPS (Earnings per Share)
ERIC-B Revenue
Description: ERIC-B Telefonaktiebolaget LM
Telefonaktiebolaget LM Ericsson (publ) is a leading provider of mobile connectivity solutions, operating through four main segments: Networks, Cloud Software and Services, Enterprise, and Other. The company offers a range of hardware and software solutions, including radio access network products, transport solutions, and managed network services, to communications service providers, enterprises, and the public sector.
The companys Networks segment is a key contributor, providing radio access network products, including antennas, radios, and baseband, as well as related services such as customer support and network tuning. The Cloud Software and Services segment offers core networks, business and operational support systems, and managed network services, while the Enterprise segment provides global communications platforms and private cellular networks. Ericssons diverse product and service portfolio positions it well for growth in the expanding mobile connectivity market.
From a financial perspective, Ericssons market capitalization stands at approximately 262.83 billion SEK, with a forward P/E ratio of 16.05, indicating a relatively attractive valuation. The companys return on equity (RoE) is 1.84%, which may be considered low; however, this metric should be evaluated in the context of the industry and the companys current strategic initiatives. To further assess Ericssons performance, key performance indicators (KPIs) such as revenue growth, operating margin, and cash flow generation should be closely monitored. For instance, Ericssons revenue growth in the Networks segment, as well as its ability to expand its Cloud Software and Services offerings, will be crucial in driving future profitability.
Ericssons global presence, with operations in multiple regions, including North America, Europe, and Asia, provides a diversified revenue stream and opportunities for growth in emerging markets. As the demand for mobile connectivity continues to rise, Ericsson is well-positioned to capitalize on this trend, driven by its strong product and service portfolio, as well as its commitment to innovation and customer satisfaction.
ERIC-B Stock Overview
| Market Cap in USD | 26,828m |
| Sub-Industry | Consumer Electronics |
| IPO / Inception |
ERIC-B Stock Ratings
| Growth Rating | -11.5% |
| Fundamental | 56.9% |
| Dividend Rating | 74.3% |
| Return 12m vs S&P 500 | -14.6% |
| Analyst Rating | - |
ERIC-B Dividends
| Dividend Yield 12m | 5.40% |
| Yield on Cost 5y | 5.05% |
| Annual Growth 5y | 12.47% |
| Payout Consistency | 85.0% |
| Payout Ratio | 67.3% |
ERIC-B Growth Ratios
| Growth Correlation 3m | -29.8% |
| Growth Correlation 12m | -51.6% |
| Growth Correlation 5y | -36.2% |
| CAGR 5y | 6.41% |
| CAGR/Max DD 3y | 0.22 |
| CAGR/Mean DD 3y | 0.41 |
| Sharpe Ratio 12m | 0.80 |
| Alpha | 0.27 |
| Beta | 0.000 |
| Volatility | 26.74% |
| Current Volume | 3664.5k |
| Average Volume 20d | 4011.8k |
| Stop Loss | 71.5 (-3%) |
| Signal | 0.32 |
Piotroski VR‑10 (Strict, 0-10) 6.5
| Net Income (17.31b TTM) > 0 and > 6% of Revenue (6% = 14.75b TTM) |
| FCFTA 0.14 (>2.0%) and ΔFCFTA 4.30pp (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 17.31b (YES >=105%, WARN >=100%) |
| Net Debt (10.14b) to EBITDA (23.39b) ratio: 0.43 <= 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 (3.34b) change vs 12m ago 0.33% (target <= -2.0% for YES) |
| Gross Margin 46.52% (prev 41.42%; Δ 5.11pp) >=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 4.64 (EBITDA TTM 23.39b / Interest Expense TTM 3.16b) >= 6 (WARN >= 3) |
Altman Z'' 1.52
| (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) 0.05 = EBIT TTM 14.66b / Avg Total Assets 274.52b |
| (D) 0.38 = Book Value of Equity 69.55b / Total Liabilities 184.86b |
| Total Rating: 1.52 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 56.91
| 1. Piotroski 6.50pt = 1.50 |
| 2. FCF Yield 14.48% = 5.0 |
| 3. FCF Margin 15.06% = 3.76 |
| 4. Debt/Equity 0.45 = 2.40 |
| 5. Debt/Ebitda 1.67 = 0.64 |
| 6. ROIC - WACC (= -3.56)% = -4.45 |
| 7. RoE 19.57% = 1.63 |
| 8. Rev. Trend -54.02% = -4.05 |
| 9. EPS Trend 9.60% = 0.48 |
What is the price of ERIC-B shares?
Over the past week, the price has changed by -2.38%, over one month by +0.33%, over three months by -9.08% and over the past year by +1.42%.
Is Telefonaktiebolaget LM a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of ERIC-B is around 69.93 SEK . This means that ERIC-B is currently overvalued and has a potential downside of -5.17%.
Is ERIC-B a buy, sell or hold?
What are the forecasts/targets for the ERIC-B price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 78.7 | 6.7% |
| Analysts Target Price | - | - |
| ValueRay Target Price | 77 | 4.4% |
ERIC-B Fundamental Data Overview
Market Cap SEK = 250.26b (250.26b SEK * 1.0 SEK.SEK)
CCE Cash And Equivalents = 33.62b SEK (last quarter)
P/E Trailing = 14.4795
P/E Forward = 13.986
P/S = 1.0179
P/B = 2.8542
P/EG = 1.9301
Beta = 0.453
Revenue TTM = 245.86b SEK
EBIT TTM = 14.66b SEK
EBITDA TTM = 23.39b 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 = 10.14b SEK (from netDebt column, last quarter)
Enterprise Value = 255.73b SEK (250.26b + Debt 39.10b - CCE 33.62b)
Interest Coverage Ratio = 4.64 (Ebit TTM 14.66b / Interest Expense TTM 3.16b)
FCF Yield = 14.48% (FCF TTM 37.03b / Enterprise Value 255.73b)
FCF Margin = 15.06% (FCF TTM 37.03b / Revenue TTM 245.86b)
Net Margin = 7.04% (Net Income TTM 17.31b / Revenue TTM 245.86b)
Gross Margin = 46.52% ((Revenue TTM 245.86b - Cost of Revenue TTM 131.48b) / Revenue TTM)
Tobins Q-Ratio = 3.68 (Enterprise Value 255.73b / 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 = 2.12b (EBIT 14.66b * (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 = 1.67 (Net Debt 10.14b / EBITDA 23.39b)
Debt / FCF = 1.06 (Debt 39.10b / FCF TTM 37.03b)
Total Stockholder Equity = 88.43b (last 4 quarters mean)
RoA = 6.40% (Net Income 17.31b, Total Assets 270.56b )
RoE = 19.57% (Net Income TTM 17.31b / Total Stockholder Equity 88.43b)
RoCE = 12.38% (Ebit 14.66b / (Equity 88.43b + L.T.Debt 29.94b))
RoIC = 1.69% (NOPAT 2.12b / Invested Capital 125.29b)
WACC = 5.25% (E(250.26b)/V(289.35b) * Re(6.02%)) + (D(39.10b)/V(289.35b) * Rd(2.37%) * (1-Tc(0.86)))
Shares Correlation 3-Years: 37.52 | Cagr: 0.02%
Discount Rate = 6.02% (= CAPM, Blume Beta Adj.) -> floored to rf + ERP 8.05%
[DCF Debug] Terminal Value 73.70% ; FCFE base≈32.67b ; Y1≈24.98b ; Y5≈15.48b
Fair Price DCF = 94.73 (DCF Value 290.98b / Shares Outstanding 3.07b; 5y FCF grow -27.98% → 3.0% )
EPS Correlation: 9.60 | EPS CAGR: -4.22% | SUE: 0.67 | # QB: 0
Revenue Correlation: -54.02 | Revenue CAGR: -6.76% | SUE: N/A | # QB: None