Telefonaktiebolaget LM Ericsson (publ) provides information and communications technology solutions for service providers. More Details
Proven track record with adequate balance sheet.
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: ERIC B has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: ERIC B exceeded the Swedish Communications industry which returned 8.4% over the past year.
Return vs Market: ERIC B underperformed the Swedish Market which returned 17.8% 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
1 day ago | Simply Wall StTelefonaktiebolaget LM Ericsson (publ)'s (STO:ERIC B) Dismal Stock Performance Reflects Weak Fundamentals
1 week ago | Simply Wall StAn Intrinsic Calculation For Telefonaktiebolaget LM Ericsson (publ) (STO:ERIC B) Suggests It's 44% Undervalued
3 weeks ago | Simply Wall StWhy It Might Not Make Sense To Buy Telefonaktiebolaget LM Ericsson (publ) (STO:ERIC B) For Its Upcoming Dividend
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: ERIC B (SEK97.42) is trading below our estimate of fair value (SEK166.5)
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 poor value based on its PE Ratio (115x) compared to the XE Communications industry average (22.6x).
PE vs Market: ERIC B is poor value based on its PE Ratio (115x) compared to the Swedish market (22.8x).
Price to Earnings Growth Ratio
PEG Ratio: ERIC B is poor value based on its PEG Ratio (5.9x)
Price to Book Ratio
PB vs Industry: ERIC B is overvalued based on its PB Ratio (4.1x) compared to the SE Communications industry average (1.6x).
How is Telefonaktiebolaget LM Ericsson forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ERIC B's forecast earnings growth (19.5% per year) is above the savings rate (0.5%).
Earnings vs Market: ERIC B's earnings (19.5% per year) are forecast to grow faster than the Swedish market (13.9% per year).
High Growth Earnings: ERIC B's earnings are forecast to grow, but not significantly.
Revenue vs Market: ERIC B's revenue (3.4% per year) is forecast to grow faster than the Swedish market (3% per year).
High Growth Revenue: ERIC B's revenue (3.4% 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 low in 3 years time (19.3%).
How has Telefonaktiebolaget LM Ericsson performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ERIC B has a large one-off loss of SEK13.1B impacting its June 30 2020 financial results.
Growing Profit Margin: ERIC B's current net profit margins (1.2%) are higher than last year (0.05%).
Past Earnings Growth Analysis
Earnings Trend: ERIC B has become profitable over the past 5 years, growing earnings by -29.4% per year.
Accelerating Growth: ERIC B's earnings growth over the past year (2312.1%) exceeds its 5-year average (-29.4% per year).
Earnings vs Industry: ERIC B earnings growth over the past year (2312.1%) exceeded the Communications industry 2.4%.
Return on Equity
High ROE: ERIC B's Return on Equity (3.1%) is considered low.
How is Telefonaktiebolaget LM Ericsson's financial position?
Financial Position Analysis
Short Term Liabilities: ERIC B's short term assets (SEK151.6B) exceed its short term liabilities (SEK124.5B).
Long Term Liabilities: ERIC B's short term assets (SEK151.6B) exceed its long term liabilities (SEK73.8B).
Debt to Equity History and Analysis
Debt Level: ERIC B's debt to equity ratio (48.3%) is considered high.
Reducing Debt: ERIC B's debt to equity ratio has increased from 18.8% to 48.3% over the past 5 years.
Debt Coverage: ERIC B's debt is well covered by operating cash flow (45.5%).
Interest Coverage: ERIC B's interest payments on its debt are well covered by EBIT (112.6x coverage).
What is Telefonaktiebolaget LM Ericsson current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ERIC B's dividend (1.54%) is higher than the bottom 25% of dividend payers in the Swedish market (1.12%).
High Dividend: ERIC B's dividend (1.54%) is low compared to the top 25% of dividend payers in the Swedish market (4.29%).
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 high payout ratio (177%), ERIC B's dividend payments are not 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 (38.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
E. Ekholm (57 yo)
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 ($USD15.12K) is below average for companies of similar size in the Swedish market ($USD2.20M).
Compensation vs Earnings: E.'s compensation has been consistent with company performance over the past year.
|Senior VP||3.5yrs||no data||0.0015% |
|Chief Accounting Officer||no data||no data||no data|
|Group CTO||3.25yrs||no data||no data|
|VP & Head of Investor Relations||7.08yrs||no data||no data|
|Senior VP||2.5yrs||no data||no data|
|SVP, Chief Marketing & Communications Officer and Head of Group Function Mktg. & Corporate Relations||1.33yrs||no data||no data|
|Senior VP||3.92yrs||no data||0.0010% |
|VP & Head of External Communications||no data||no data||no data|
|Head of Group Function Financial Control||no data||no data||no data|
|Senior VP and Head of Market Area South East Asia||10.5yrs||no data||0.0014% |
|Head of Region Latin America||10.5yrs||no data||no data|
Experienced Management: ERIC B's management team is considered experienced (3.8 years average tenure).
|Independent Director||7.5yrs||kr1.38m||0.00012% |
|Independent Director||2.58yrs||kr1.13m||0.0015% |
|Deputy Independent Chairman||4.5yrs||kr1.09m||0.00060% |
|Deputy Independent Chairman||no data||kr1.03m||0.013% |
|Independent Director||3.58yrs||kr958.79k||no data|
|Independent Director||4.5yrs||kr1.17m||no data|
|Employee Representative Director||2.58yrs||kr40.50k||0.0010% |
|Independent Chairman of the Board||2.58yrs||kr3.80m||0.0030% |
|Employee Representative Director||3.58yrs||kr36.00k||0.00044% |
|Independent Director||3.58yrs||kr1.33m||0.00030% |
|Employee Representative Director||3.58yrs||kr40.50k||0.00027% |
Experienced Board: ERIC B's board of directors are considered experienced (3.6 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ERIC B insiders have only sold shares in the past 3 months.
Recent Insider Transactions
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: ERIC B
- Exchange: OM
- Founded: 1876
- Industry: Communications Equipment
- Sector: Tech
- Market Cap: kr317.785b
- Shares outstanding: 3.32b
- 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, a ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/10/19 21:35|
|End of Day Share Price||2020/10/19 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.