Telefonaktiebolaget LM Ericsson (publ) provides information and communications technology solutions for service providers.
Adequate balance sheet with moderate growth potential.
Share Price & News
How has Telefonaktiebolaget LM Ericsson's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ERCG has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: ERCG exceeded the German Communications industry which returned -3.6% over the past year.
Return vs Market: ERCG underperformed the German Market which returned 12.8% over the past year.
Price Volatility Vs. Market
How volatile is Telefonaktiebolaget LM Ericsson's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Telefonaktiebolaget LM Ericsson undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ERCG (€8.68) is trading below our estimate of fair value (€12.78)
Significantly Below Fair Value: ERCG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ERCG is poor value based on its PE Ratio (129x) compared to the Communications industry average (19.3x).
PE vs Market: ERCG is poor value based on its PE Ratio (129x) compared to the German market (21x).
Price to Earnings Growth Ratio
PEG Ratio: ERCG is poor value based on its PEG Ratio (4.3x)
Price to Book Ratio
PB vs Industry: ERCG is overvalued based on its PB Ratio (3.5x) compared to the DE Communications industry average (3.1x).
How is Telefonaktiebolaget LM Ericsson forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ERCG's forecast earnings growth (29.7% per year) is above the savings rate (-0.4%).
Earnings vs Market: ERCG's earnings (29.7% per year) are forecast to grow faster than the German market (13% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ERCG's revenue (3.1% per year) is forecast to grow slower than the German market (5.2% per year).
High Growth Revenue: ERCG's revenue (3.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ERCG's Return on Equity is forecast to be low in 3 years time (18.1%).
How has Telefonaktiebolaget LM Ericsson performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ERCG has a large one-off loss of SEK10.8B impacting its December 31 2019 financial results.
Growing Profit Margin: ERCG became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: ERCG has become profitable over the past 5 years, growing earnings by -45.4% per year.
Accelerating Growth: ERCG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: ERCG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Communications industry (31.6%).
Return on Equity
High ROE: ERCG's Return on Equity (2.2%) is considered low.
Return on Assets
Return on Capital Employed
How is Telefonaktiebolaget LM Ericsson's financial position?
Financial Position Analysis
Short Term Liabilities: ERCG's short term assets (SEK153.9B) exceed its short term liabilities (SEK116.8B).
Long Term Liabilities: ERCG's short term assets (SEK153.9B) exceed its long term liabilities (SEK77.7B).
Debt to Equity History and Analysis
Debt Level: ERCG's debt to equity ratio (46%) is considered high.
Reducing Debt: ERCG's debt to equity ratio has increased from 18% to 46% over the past 5 years.
Inventory Level: ERCG has a low level of unsold assets or inventory.
Debt Coverage by Assets: ERCG's debt is covered by short term assets (assets are 4.1x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: ERCG is profitable, therefore cash runway is not a concern.
Forecast Cash Runway: ERCG is profitable, therefore cash runway is not a concern.
What is Telefonaktiebolaget LM Ericsson's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Purchase Telefonaktiebolaget LM Ericsson before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: ERCG's dividend (1.73%) is higher than the bottom 25% of dividend payers in the German market (1.31%).
High Dividend: ERCG's dividend (1.73%) is low compared to the top 25% of dividend payers in the German market (3.63%).
Stability and Growth of Payments
Stable Dividend: ERCG's dividend payments have been volatile in the past 10 years.
Growing Dividend: ERCG's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (223.1%), ERCG's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ERCG's dividends in 3 years are forecast to be well covered by earnings (40.1% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
E. Ekholm (56yo)
Mr. E. Börje Ekholm, MSc, MBA serves as Independent Director of Trimble Inc. since January 04, 2020. He has been the Chief Executive Officer and President of Telefonaktiebolaget LM Ericsson (publ) since Ja ...
CEO Compensation Analysis
Compensation vs Market: E.'s total compensation ($USD75.85K) is below average for companies of similar size in the German market ($USD4.38M).
Compensation vs Earnings: E.'s compensation has been consistent with company performance over the past year.
|Senior VP||2.8yrs||no data||0.00094% SEK256.8k|
|Chief Accounting Officer||0yrs||no data||no data|
|Group CTO||2.6yrs||no data||no data|
|VP & Head of Investor Relations||6.4yrs||no data||no data|
|Senior VP||1.8yrs||no data||no data|
|SVP, Chief Marketing & Communications Officer and Head of Group Marketing & Corporate Relations||0.7yrs||no data||no data|
|Senior VP||3.3yrs||no data||0.00063% SEK172.1k|
|Senior Vice President of Supply & Information Technology||0yrs||no data||no data|
|VP & Head of External Communications||0yrs||no data||no data|
Experienced Management: ERCG's management team is considered experienced (2.8 years average tenure).
|Independent Director||6.8yrs||kr1.69m||0.00012% SEK32.8k|
|Independent Director||1.9yrs||kr1.48m||0.0015% SEK412.5k|
|Deputy Chairman||3.8yrs||kr1.66m||0.00061% SEK166.7k|
|Deputy Chairman||0yrs||kr1.91m||0.013% SEK3.5m|
|Independent Director||2.9yrs||kr1.50m||no data|
|Employee Representative Director||1.9yrs||kr31.50k||0.00094% SEK256.8k|
|Chairman of the Board||1.9yrs||kr4.83m||0.0030% SEK825.1k|
|Employee Representative Director||2.9yrs||kr48.00k||0.00060% SEK163.9k|
|Independent Director||2.9yrs||kr1.44m||0.00030% SEK82.0k|
Experienced Board: ERCG's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Telefonaktiebolaget LM Ericsson (publ)'s company bio, employee growth, exchange listings and data sources
- Name: Telefonaktiebolaget LM Ericsson (publ)
- Ticker: ERCG
- Exchange: DB
- Founded: 1876
- Industry: Communications Equipment
- Sector: Tech
- Market Cap: kr288.552b
- Listing Market Cap: kr27.320b
- Shares outstanding: 3.31b
- Website: https://www.ericsson.com
Number of Employees
- Telefonaktiebolaget LM Ericsson (publ)
- Torshamnsgatan 21
- Stockholm County
- 164 83
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|ERIC||NasdaqGS (Nasdaq Global Select)||ADR EACH REP 1 ORD'B'SEK1||US||USD||Dec 1972|
|ERIC N||BMV (Bolsa Mexicana de Valores)||ADR EACH REP 1 ORD'B'SEK1||MX||MXN||Dec 1972|
|ERCA||DB (Deutsche Boerse AG)||ADR EACH REP 1 ORD'B'SEK1||DE||EUR||Dec 1972|
|ERCA||XTRA (XETRA Trading Platform)||ADR EACH REP 1 ORD'B'SEK1||DE||EUR||Dec 1972|
|ERIX.F||OTCPK (Pink Sheets LLC)||Yes||Class B Shares||US||USD||Sep 1990|
|ERIC B||OM (OMX Nordic Exchange Stockholm)||Yes||Class B Shares||SE||SEK||Sep 1990|
|ERCB||DB (Deutsche Boerse AG)||Yes||Class B Shares||DE||EUR||Sep 1990|
|0O87||LSE (London Stock Exchange)||Yes||Class B Shares||GB||SEK||Sep 1990|
|ERIBR||HLSE (OMX Nordic Exchange Helsinki)||Yes||Class B Shares||FI||EUR||Sep 1990|
|ERICB||SWX (SIX Swiss Exchange)||Yes||Class B Shares||CH||CHF||Sep 1990|
|ERCB||XTRA (XETRA Trading Platform)||Yes||Class B Shares||DE||EUR||Sep 1990|
|ERICBS||BATS-CHIXE (BATS 'Chi-X Europe')||Yes||Class B Shares||GB||SEK||Sep 1990|
|ERIBRH||BATS-CHIXE (BATS 'Chi-X Europe')||Yes||Class B Shares||GB||EUR||Sep 1990|
|ERCB||ETLX (Eurotlx)||Yes||Class B Shares||IT||EUR||Sep 1990|
|ERIC A||OM (OMX Nordic Exchange Stockholm)||Class A Shares||SE||SEK||Jan 1992|
|ERCG||XTRA (XETRA Trading Platform)||Class A Shares||DE||EUR||Jan 1992|
|0O86||LSE (London Stock Exchange)||Class A Shares||GB||SEK||Jan 1992|
|ERCG||DB (Deutsche Boerse AG)||Class A Shares||DE||EUR||Jan 1992|
|ERICAS||BATS-CHIXE (BATS 'Chi-X Europe')||Class A Shares||GB||SEK||Jan 1992|
Telefonaktiebolaget LM Ericsson (publ) provides information and communications technology solutions for service providers. It operates through four segments: Networks, Digital Services, Managed Services, and Emerging Business and Other. The Networks segment provides mobile radio access networks, transport solutions, and site solutions, as well as related services, such as network rollout, network tuning, and customer support. The Digital Services segment offers products and services for service providers in the areas of business support systems, operations support systems, cloud core, cloud communication, network functions virtualization, and cloud infrastructure, as well as consulting, learning, and testing services. The Managed Services segment provides vendor agnostic services, including networks and IT managed, application development and modernization, and network design and optimization services to manage service providers networks. The Emerging Business and Other segment consists of emerging businesses; iconectiv that offers software-based interconnection solutions; media solutions; and Red Bee Media, which consists of technology enabled services to manage the play-out platform for broadcasters and content owners. It operates in Europe and Latin America, the Middle East and Africa, North America, North East Asia, South East Asia, Oceania, and India. The company was founded in 1876 and is headquartered in Stockholm, Sweden.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/23 21:39|
|End of Day Share Price||2020/02/21 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.