| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 3/6 |
| Past Performance | 4/6 |
| Financial Health | 5/6 |
| Dividends | 3/6 |
ERIC B Overview
Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides communication infrastructure, services, and software solutions to the telecom and other sectors.
Telefonaktiebolaget LM Ericsson Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | kr96.58 |
| 52 Week High | kr94.71 |
| 52 Week Low | kr121.80 |
| Beta | 0.16 |
| 1 Month Change | -4.24% |
| 3 Month Change | -2.92% |
| 1 Year Change | -6.69% |
| 3 Year Change | 21.88% |
| 5 Year Change | 122.02% |
| Change since IPO | 178.43% |
Recent News & Updates
Investors Don't See Light At End Of Telefonaktiebolaget LM Ericsson (publ)'s (STO:ERIC B) Tunnel
Telefonaktiebolaget LM Ericsson (publ)'s ( STO:ERIC B ) price-to-earnings (or "P/E") ratio of 16.9x might make it look...
Is Telefonaktiebolaget LM Ericsson (STO:ERIC B) Using Too Much Debt?
Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it seems the smart money knows that...
Telefonaktiebolaget LM Ericsson (STO:ERIC B) Is Increasing Its Dividend To kr1.00
Telefonaktiebolaget LM Ericsson (publ) ( STO:ERIC B ) has announced that it will be increasing its dividend on the 6th...
Telefonaktiebolaget LM Ericsson (STO:ERIC B) Is Investing Its Capital With Increasing Efficiency
Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...
Shareholder Returns
| ERIC B | SE Communications | SE Market | |
|---|---|---|---|
| 7D | -5.5% | -8.6% | 1.8% |
| 1Y | -6.7% | -4.6% | 37.7% |
Return vs Industry: ERIC B underperformed the Swedish Communications industry which returned -4.6% over the past year.
Return vs Market: ERIC B underperformed the Swedish Market which returned 34.1% over the past year.
Price Volatility
| ERIC B volatility | |
|---|---|
| ERIC B Beta | 0.16 |
| Industry Beta | 1.33 |
| Market Beta | 1 |
Stable Share Price: ERIC B is less volatile than 75% of Swedish stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: ERIC B's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1876 | 102,203 | E. Ekholm | https://www.ericsson.com |
Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides communication infrastructure, services, and software solutions to the telecom and other sectors. It operates through four segments: Networks, Digital Services, Managed Services, and Emerging Business and Other. The Networks segment offers hardware, software, and related services for radio access and transport, as well as related services, such as design, tuning, network rollout, and customer support.
Telefonaktiebolaget LM Ericsson Fundamentals Summary
| ERIC B fundamental statistics | |
|---|---|
| Market Cap | kr321.64b |
| Earnings (TTM) | kr20.14b |
| Revenue (TTM) | kr230.57b |
16.0x
P/E Ratio1.4x
P/S RatioIs ERIC B overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| ERIC B income statement (TTM) | |
|---|---|
| Revenue | kr230.57b |
| Cost of Revenue | kr132.31b |
| Gross Profit | kr98.26b |
| Expenses | kr78.12b |
| Earnings | kr20.14b |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 6.05 |
| Gross Margin | 42.62% |
| Net Profit Margin | 8.73% |
| Debt/Equity Ratio | 33.9% |
How did ERIC B perform over the long term?
See historical performance and comparisonDividends
2.1%
Current Dividend Yield33%
Payout RatioValuation
Is Telefonaktiebolaget LM Ericsson undervalued compared to its fair value and its price relative to the market?
39.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ERIC B (SEK96.15) is trading below our estimate of fair value (SEK160.16)
Significantly Below Fair Value: ERIC B is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ERIC B is good value based on its PE Ratio (15.9x) compared to the Swedish Communications industry average (56.2x).
PE vs Market: ERIC B is good value based on its PE Ratio (15.9x) compared to the Swedish market (23.5x).
Price to Earnings Growth Ratio
PEG Ratio: ERIC B is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: ERIC B is overvalued based on its PB Ratio (3.3x) compared to the SE Communications industry average (3x).
Future Growth
How is Telefonaktiebolaget LM Ericsson forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?
10.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ERIC B's forecast earnings growth (10.1% per year) is above the savings rate (0.3%).
Earnings vs Market: ERIC B's earnings (10.1% per year) are forecast to grow faster than the Swedish market (5.5% per year).
High Growth Earnings: ERIC B's earnings are forecast to grow, but not significantly.
Revenue vs Market: ERIC B's revenue (2.8% per year) is forecast to grow slower than the Swedish market (4.8% per year).
High Growth Revenue: ERIC B's revenue (2.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ERIC B's Return on Equity is forecast to be high in 3 years time (20.5%)
Past Performance
How has Telefonaktiebolaget LM Ericsson performed over the past 5 years?
52.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ERIC B has high quality earnings.
Growing Profit Margin: ERIC B's current net profit margins (8.7%) are higher than last year (6.3%).
Past Earnings Growth Analysis
Earnings Trend: ERIC B's earnings have grown significantly by 52.5% per year over the past 5 years.
Accelerating Growth: ERIC B's earnings growth over the past year (39.9%) is below its 5-year average (52.5% per year).
Earnings vs Industry: ERIC B earnings growth over the past year (39.9%) underperformed the Communications industry 39.9%.
Return on Equity
High ROE: ERIC B's Return on Equity (20.9%) is considered high.
Financial Health
How is Telefonaktiebolaget LM Ericsson's financial position?
Financial Position Analysis
Short Term Liabilities: ERIC B's short term assets (SEK163.1B) exceed its short term liabilities (SEK125.9B).
Long Term Liabilities: ERIC B's short term assets (SEK163.1B) exceed its long term liabilities (SEK69.0B).
Debt to Equity History and Analysis
Debt Level: ERIC B's debt to equity ratio (33.9%) is considered satisfactory.
Reducing Debt: ERIC B's debt to equity ratio has increased from 20.4% to 33.9% over the past 5 years.
Debt Coverage: ERIC B's debt is well covered by operating cash flow (116.4%).
Interest Coverage: ERIC B's interest payments on its debt are well covered by EBIT (17x coverage).
Balance Sheet
Dividend
What is Telefonaktiebolaget LM Ericsson current dividend yield, its reliability and sustainability?
2.07%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ERIC B's dividend (2.08%) is higher than the bottom 25% of dividend payers in the Swedish market (0.91%).
High Dividend: ERIC B's dividend (2.08%) is low compared to the top 25% of dividend payers in the Swedish market (3.55%).
Stability and Growth of Payments
Stable Dividend: ERIC B's dividend payments have been volatile in the past 10 years.
Growing Dividend: ERIC B's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (33.1%), ERIC B's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ERIC B's dividends in 3 years are forecast to be well covered by earnings (36.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.8yrs
Average management tenure
CEO
E. Ekholm (58 yo)
4.75yrs
Tenure
kr106,413,610
Compensation
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 ($USD12.38M) is above average for companies of similar size in the Swedish market ($USD2.43M).
Compensation vs Earnings: E.'s compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: ERIC B's management team is considered experienced (4.8 years average tenure).
Board Members
Experienced Board: ERIC B's board of directors are considered experienced (4.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ERIC B insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Telefonaktiebolaget LM Ericsson (publ)'s employee growth, exchange listings and data sources
Key Information
- Name: Telefonaktiebolaget LM Ericsson (publ)
- Ticker: ERIC B
- Exchange: OM
- Founded: 1876
- Industry: Communications Equipment
- Sector: Tech
- Market Cap: kr321.644b
- Shares outstanding: 3.33b
- Website: https://www.ericsson.com
Number of Employees
Location
- Telefonaktiebolaget LM Ericsson (publ)
- Torshamnsgatan 21
- Kista
- Stockholm
- Stockholm County
- 164 83
- Sweden
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/26 21:11 |
| End of Day Share Price | 2021/10/26 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.