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Telefonaktiebolaget LM Ericsson (publ)

OM:ERIC B Stock Report

Market Cap: SEK 258.2b

Telefonaktiebolaget LM Ericsson (ERIC B) Stock Overview

Provides mobile connectivity solutions to communications service providers, enterprises, and the public sector. More details

ERIC B fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance1/6
Financial Health6/6
Dividends3/6

Rewards

Trading at 44.8% below our estimate of its fair value

Earnings are forecast to grow 30.65% per year

Became profitable this year

Trading at good value compared to peers and industry

Risk Analysis

Large one-off items impacting financial results

Dividend of 3.68% is not well covered by earnings


ERIC B Community Fair Values

Create Narrative

See what 38 others think this stock is worth. Follow their fair value or set your own to get alerts.

ERIC B logo
Telefonaktiebolaget LM Ericsson
AN
AnalystConsensusTarget
Consensus Narrative from 18 Analysts

5G Private Networks And Fraud APIs Will Unlock Future Markets

Key Takeaways Leadership in programmable networks and key partnerships position Ericsson to drive new revenue streams and future growth through differentiated services. Resilient supply chain and strategic regional consolidation aim to enhance market share and improve net margins amid macroeconomic challenges.
View narrative
SEK 81.61
FV
5.2% undervalued intrinsic discount
0.76%
Revenue growth p.a.
0users have liked this narrative
0users have commented on this narrative
25users have followed this narrative
3 days ago author updated this narrative
ERIC B logo
Telefonaktiebolaget LM Ericsson
AN
AnalystHighTarget
Consensus Narrative from 18 Analysts

Expanding 5G Networks And IoT Demand Will Drive Connectivity

Key Takeaways Ericsson's leadership in next-gen networks and early enterprise digitalization positions it for dominant recurring revenue growth and margin expansion through diversified, high-value solutions. Strategic focus on software, sustainability, and cloud-native services reduces hardware risk and accelerates contract wins, enhancing long-term profitability and market share.
View narrative
SEK 101.00
FV
23.4% undervalued intrinsic discount
3.80%
Revenue growth p.a.
0users have liked this narrative
0users have commented on this narrative
0users have followed this narrative
10 days ago author updated this narrative
ERIC B logo
Telefonaktiebolaget LM Ericsson
AN
AnalystLowTarget
Consensus Narrative from 18 Analysts

Network Commoditization Will Erode Pricing Power In Telecom

Key Takeaways Erosion of pricing power and market share due to open-source adoption, aggressive competitors, and operator consolidation will limit long-term growth opportunities. Rising regulatory, geopolitical, and ESG compliance pressures will increase costs and threaten profitability and investment capacity in future technologies.
View narrative
SEK 57.00
FV
35.8% overvalued intrinsic discount
-0.74%
Revenue growth p.a.
0users have liked this narrative
0users have commented on this narrative
0users have followed this narrative
10 days ago author updated this narrative
View Telefonaktiebolaget LM Ericsson Community

Telefonaktiebolaget LM Ericsson (publ) Competitors

Price History & Performance

Summary of share price highs, lows and changes for Telefonaktiebolaget LM Ericsson
Historical stock prices
Current Share PriceSEK 77.40
52 Week HighSEK 97.68
52 Week LowSEK 65.94
Beta0.44
1 Month Change-5.05%
3 Month Change9.54%
1 Year Change9.20%
3 Year Change5.35%
5 Year Change-20.75%
Change since IPO123.14%

Recent News & Updates

These 4 Measures Indicate That Telefonaktiebolaget LM Ericsson (STO:ERIC B) Is Using Debt Reasonably Well

Jun 29
These 4 Measures Indicate That Telefonaktiebolaget LM Ericsson (STO:ERIC B) Is Using Debt Reasonably Well

Telefonaktiebolaget LM Ericsson (publ)'s (STO:ERIC B) Share Price Is Matching Sentiment Around Its Revenues

May 05
Telefonaktiebolaget LM Ericsson (publ)'s (STO:ERIC B) Share Price Is Matching Sentiment Around Its Revenues

Recent updates

These 4 Measures Indicate That Telefonaktiebolaget LM Ericsson (STO:ERIC B) Is Using Debt Reasonably Well

Jun 29
These 4 Measures Indicate That Telefonaktiebolaget LM Ericsson (STO:ERIC B) Is Using Debt Reasonably Well

Telefonaktiebolaget LM Ericsson (publ)'s (STO:ERIC B) Share Price Is Matching Sentiment Around Its Revenues

May 05
Telefonaktiebolaget LM Ericsson (publ)'s (STO:ERIC B) Share Price Is Matching Sentiment Around Its Revenues

Is Telefonaktiebolaget LM Ericsson (publ) (STO:ERIC B) Trading At A 37% Discount?

Apr 09
Is Telefonaktiebolaget LM Ericsson (publ) (STO:ERIC B) Trading At A 37% Discount?

Why Telefonaktiebolaget LM Ericsson's (STO:ERIC B) Earnings Are Better Than They Seem

Feb 01
Why Telefonaktiebolaget LM Ericsson's (STO:ERIC B) Earnings Are Better Than They Seem

Telefonaktiebolaget LM Ericsson (publ) Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Jan 27
Telefonaktiebolaget LM Ericsson (publ) Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Are Investors Undervaluing Telefonaktiebolaget LM Ericsson (publ) (STO:ERIC B) By 24%?

Dec 13
Are Investors Undervaluing Telefonaktiebolaget LM Ericsson (publ) (STO:ERIC B) By 24%?
author-image

Challenging RAN Markets Could Dent Ericsson's Margins But 5G And Network API Hold Revenue Promise

Ericsson faces challenges with declining sales growth in key regions, strategic focus on new use cases poses risks of delayed revenue realization.

Telefonaktiebolaget LM Ericsson (STO:ERIC B) Is Paying Out A Dividend Of SEK1.35

Sep 10
Telefonaktiebolaget LM Ericsson (STO:ERIC B) Is Paying Out A Dividend Of SEK1.35

Telefonaktiebolaget LM Ericsson's (STO:ERIC B) Dividend Will Be SEK1.35

Aug 26
Telefonaktiebolaget LM Ericsson's (STO:ERIC B) Dividend Will Be SEK1.35

Telefonaktiebolaget LM Ericsson (STO:ERIC B) Has Announced A Dividend Of SEK1.35

Jul 31
Telefonaktiebolaget LM Ericsson (STO:ERIC B) Has Announced A Dividend Of SEK1.35

Telefonaktiebolaget LM Ericsson (STO:ERIC B) Has Affirmed Its Dividend Of SEK1.35

Jul 12
Telefonaktiebolaget LM Ericsson (STO:ERIC B) Has Affirmed Its Dividend Of SEK1.35

Shareholder Returns

ERIC BSE CommunicationsSE Market
7D-5.5%-4.1%1.8%
1Y9.2%13.5%-0.6%

Return vs Industry: ERIC B underperformed the Swedish Communications industry which returned 13.5% over the past year.

Return vs Market: ERIC B exceeded the Swedish Market which returned -0.6% over the past year.

Price Volatility

Is ERIC B's price volatile compared to industry and market?
ERIC B volatility
ERIC B Average Weekly Movement3.8%
Communications Industry Average Movement7.9%
Market Average Movement6.4%
10% most volatile stocks in SE Market14.0%
10% least volatile stocks in SE Market3.3%

Stable Share Price: ERIC B has not had significant price volatility in the past 3 months compared to the Swedish market.

Volatility Over Time: ERIC B's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
187692,866E. Ekholmwww.ericsson.com

Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions to communications service providers, enterprises, and the public sector. It operates through Networks; Cloud Software and Services; Enterprise; and Other segments. The Networks segment offers hardware and software solutions, and related service offerings.

Telefonaktiebolaget LM Ericsson (publ) Fundamentals Summary

How do Telefonaktiebolaget LM Ericsson's earnings and revenue compare to its market cap?
ERIC B fundamental statistics
Market capSEK 258.23b
Earnings (TTM)SEK 1.61b
Revenue (TTM)SEK 249.58b
160.2x
P/E Ratio
1.0x
P/S Ratio

Is ERIC B overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
ERIC B income statement (TTM)
RevenueSEK 249.58b
Cost of RevenueSEK 134.25b
Gross ProfitSEK 115.33b
Other ExpensesSEK 113.72b
EarningsSEK 1.61b

Last Reported Earnings

Mar 31, 2025

Next Earnings Date

Jul 15, 2025

Earnings per share (EPS)0.48
Gross Margin46.21%
Net Profit Margin0.65%
Debt/Equity Ratio41.9%

How did ERIC B perform over the long term?

See historical performance and comparison

Dividends

3.7%
Current Dividend Yield
590%
Payout Ratio

Does ERIC B pay a reliable dividends?

See ERIC B dividend history and benchmarks
When do you need to buy ERIC B by to receive an upcoming dividend?
Telefonaktiebolaget LM Ericsson dividend dates
Ex Dividend DateSep 26 2025
Dividend Pay DateOct 02 2025
Days until Ex dividend75 days
Days until Dividend pay date81 days

Does ERIC B pay a reliable dividends?

See ERIC B dividend history and benchmarks

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/07/11 10:07
End of Day Share Price 2025/07/11 00:00
Earnings2025/03/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Telefonaktiebolaget LM Ericsson (publ) is covered by 70 analysts. 20 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
null nullABG Sundal Collier
Lionel PellicerAlphaValue
Richard KramerArete Research Services LLP