ERICSSON LM-B SHS (1ERICB.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1ERICB - SE0000108656 - Common Stock
8.176 EUR
-0.06 (-0.7%)
1ERICB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 32 industry peers in the Communications Equipment industry. While 1ERICB has a great profitability rating, there are some minor concerns on its financial health. 1ERICB scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally 1ERICB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year 1ERICB was profitable.
In the past year 1ERICB had a positive cash flow from operations.
Of the past 5 years 1ERICB 4 years were profitable.
1ERICB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 8.72%, 1ERICB is doing good in the industry, outperforming 79.31% of the companies in the same industry.
1ERICB's Return On Equity of 24.01% is amongst the best of the industry. 1ERICB outperforms 82.76% of its industry peers.
1ERICB has a better Return On Invested Capital (14.43%) than 86.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1ERICB is in line with the industry average of 11.49%.
The last Return On Invested Capital (14.43%) for 1ERICB is above the 3 year average (10.05%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.72% | ||
| ROE | 24.01% | ||
| ROIC | 14.43% |
ROA(3y)-1.18%
ROA(5y)2.06%
ROE(3y)-4.3%
ROE(5y)5.63%
ROIC(3y)10.05%
ROIC(5y)11.58%
1.3 Margins
Looking at the Profit Margin, with a value of 10.26%, 1ERICB is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
1ERICB's Profit Margin has declined in the last couple of years.
1ERICB has a Operating Margin of 12.97%. This is in the better half of the industry: 1ERICB outperforms 75.86% of its industry peers.
1ERICB's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 47.62%, 1ERICB is in line with its industry, outperforming 51.72% of the companies in the same industry.
In the last couple of years the Gross Margin of 1ERICB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.97% | ||
| PM (TTM) | 10.26% | ||
| GM | 47.62% |
OM growth 3Y-12.66%
OM growth 5Y14.26%
PM growth 3Y-90.62%
PM growth 5Y-61.69%
GM growth 3Y1.11%
GM growth 5Y3.7%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1ERICB is creating value.
1ERICB has about the same amout of shares outstanding than it did 1 year ago.
1ERICB has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1ERICB has an improved debt to assets ratio.
2.2 Solvency
1ERICB has a debt to FCF ratio of 1.45. This is a very positive value and a sign of high solvency as it would only need 1.45 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.45, 1ERICB belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.
A Debt/Equity ratio of 0.35 indicates that 1ERICB is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.35, 1ERICB is in line with its industry, outperforming 58.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 1.45 | ||
| Altman-Z | N/A |
ROIC/WACC2.22
WACC6.51%
2.3 Liquidity
A Current Ratio of 1.17 indicates that 1ERICB should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.17, 1ERICB is doing worse than 75.86% of the companies in the same industry.
A Quick Ratio of 0.94 indicates that 1ERICB may have some problems paying its short term obligations.
1ERICB's Quick ratio of 0.94 is on the low side compared to the rest of the industry. 1ERICB is outperformed by 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
1ERICB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 395.75%, which is quite impressive.
1ERICB shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -17.01% yearly.
1ERICB shows a decrease in Revenue. In the last year, the revenue decreased by -2.65%.
1ERICB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.76% yearly.
EPS 1Y (TTM)395.75%
EPS 3Y-38.27%
EPS 5Y-17.01%
EPS Q2Q%-5.34%
Revenue 1Y (TTM)-2.65%
Revenue growth 3Y2.19%
Revenue growth 5Y1.76%
Sales Q2Q%-10.28%
3.2 Future
The Earnings Per Share is expected to grow by 29.10% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -0.77% on average over the next years.
EPS Next Y271.88%
EPS Next 2Y89.39%
EPS Next 3Y55.91%
EPS Next 5Y29.1%
Revenue Next Year-3.55%
Revenue Next 2Y-1.45%
Revenue Next 3Y-0.62%
Revenue Next 5Y-0.77%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.63 indicates a correct valuation of 1ERICB.
Based on the Price/Earnings ratio, 1ERICB is valued cheaply inside the industry as 93.10% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.25, 1ERICB is valued a bit cheaper.
A Price/Forward Earnings ratio of 14.55 indicates a correct valuation of 1ERICB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1ERICB indicates a somewhat cheap valuation: 1ERICB is cheaper than 79.31% of the companies listed in the same industry.
1ERICB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.63 | ||
| Fwd PE | 14.55 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1ERICB indicates a rather cheap valuation: 1ERICB is cheaper than 82.76% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 1ERICB is valued a bit cheaper than the industry average as 72.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.77 | ||
| EV/EBITDA | 6.9 |
4.3 Compensation for Growth
1ERICB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
1ERICB has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as 1ERICB's earnings are expected to grow with 55.91% in the coming years.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y89.39%
EPS Next 3Y55.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.18%, 1ERICB has a reasonable but not impressive dividend return.
1ERICB's Dividend Yield is rather good when compared to the industry average which is at 2.52. 1ERICB pays more dividend than 89.66% of the companies in the same industry.
1ERICB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
5.2 History
On average, the dividend of 1ERICB grows each year by 22.02%, which is quite nice.
Dividend Growth(5Y)22.02%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
37.84% of the earnings are spent on dividend by 1ERICB. This is a low number and sustainable payout ratio.
1ERICB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.84%
EPS Next 2Y89.39%
EPS Next 3Y55.91%
BIT:1ERICB (10/16/2025, 7:00:00 PM)
8.176
-0.06 (-0.7%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners54.97%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap27.25B
Revenue(TTM)240.31B
Net Income(TTM)24.64B
Analysts56.43
Price Target7.12 (-12.92%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
Yearly Dividend0.25
Dividend Growth(5Y)22.02%
DP37.84%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.35%
Min EPS beat(2)-21.32%
Max EPS beat(2)20.62%
EPS beat(4)2
Avg EPS beat(4)9.6%
Min EPS beat(4)-21.32%
Max EPS beat(4)49.81%
EPS beat(8)5
Avg EPS beat(8)-42.25%
EPS beat(12)8
Avg EPS beat(12)-19.96%
EPS beat(16)9
Avg EPS beat(16)-14.95%
Revenue beat(2)0
Avg Revenue beat(2)-4.34%
Min Revenue beat(2)-6.39%
Max Revenue beat(2)-2.29%
Revenue beat(4)0
Avg Revenue beat(4)-2.81%
Min Revenue beat(4)-6.39%
Max Revenue beat(4)-0.45%
Revenue beat(8)1
Avg Revenue beat(8)-2.49%
Revenue beat(12)3
Avg Revenue beat(12)-1.62%
Revenue beat(16)7
Avg Revenue beat(16)-0.77%
PT rev (1m)-7.79%
PT rev (3m)-7.79%
EPS NQ rev (1m)-32.07%
EPS NQ rev (3m)-32.07%
EPS NY rev (1m)1.18%
EPS NY rev (3m)1.18%
Revenue NQ rev (1m)-11.66%
Revenue NQ rev (3m)-11.66%
Revenue NY rev (1m)-3.89%
Revenue NY rev (3m)-3.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.63 | ||
| Fwd PE | 14.55 | ||
| P/S | 1.24 | ||
| P/FCF | 9.77 | ||
| P/OCF | 8.75 | ||
| P/B | 2.89 | ||
| P/tB | 6.63 | ||
| EV/EBITDA | 6.9 |
EPS(TTM)0.6
EY7.34%
EPS(NY)0.56
Fwd EY6.87%
FCF(TTM)0.84
FCFY10.23%
OCF(TTM)0.93
OCFY11.43%
SpS6.61
BVpS2.82
TBVpS1.23
PEG (NY)0.05
PEG (5Y)N/A
Graham Number6.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.72% | ||
| ROE | 24.01% | ||
| ROCE | 19.24% | ||
| ROIC | 14.43% | ||
| ROICexc | 21.07% | ||
| ROICexgc | 44.01% | ||
| OM | 12.97% | ||
| PM (TTM) | 10.26% | ||
| GM | 47.62% | ||
| FCFM | 12.65% |
ROA(3y)-1.18%
ROA(5y)2.06%
ROE(3y)-4.3%
ROE(5y)5.63%
ROIC(3y)10.05%
ROIC(5y)11.58%
ROICexc(3y)14.08%
ROICexc(5y)16.96%
ROICexgc(3y)44.7%
ROICexgc(5y)41.2%
ROCE(3y)13.4%
ROCE(5y)15.43%
ROICexgc growth 3Y9.12%
ROICexgc growth 5Y32.67%
ROICexc growth 3Y-8.84%
ROICexc growth 5Y16.91%
OM growth 3Y-12.66%
OM growth 5Y14.26%
PM growth 3Y-90.62%
PM growth 5Y-61.69%
GM growth 3Y1.11%
GM growth 5Y3.7%
F-Score6
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 1.45 | ||
| Debt/EBITDA | 0.87 | ||
| Cap/Depr | 36.83% | ||
| Cap/Sales | 1.48% | ||
| Interest Coverage | 13.31 | ||
| Cash Conversion | 83.18% | ||
| Profit Quality | 123.37% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | N/A |
F-Score6
WACC6.51%
ROIC/WACC2.22
Cap/Depr(3y)47.04%
Cap/Depr(5y)51.35%
Cap/Sales(3y)1.94%
Cap/Sales(5y)2.02%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)395.75%
EPS 3Y-38.27%
EPS 5Y-17.01%
EPS Q2Q%-5.34%
EPS Next Y271.88%
EPS Next 2Y89.39%
EPS Next 3Y55.91%
EPS Next 5Y29.1%
Revenue 1Y (TTM)-2.65%
Revenue growth 3Y2.19%
Revenue growth 5Y1.76%
Sales Q2Q%-10.28%
Revenue Next Year-3.55%
Revenue Next 2Y-1.45%
Revenue Next 3Y-0.62%
Revenue Next 5Y-0.77%
EBIT growth 1Y54.66%
EBIT growth 3Y-10.75%
EBIT growth 5Y16.26%
EBIT Next Year81.48%
EBIT Next 3Y20.93%
EBIT Next 5Y13.49%
FCF growth 1Y392.6%
FCF growth 3Y7.36%
FCF growth 5Y33.08%
OCF growth 1Y169.74%
OCF growth 3Y5.8%
OCF growth 5Y22.35%
ERICSSON LM-B SHS / 1ERICB.MI FAQ
Can you provide the ChartMill fundamental rating for ERICSSON LM-B SHS?
ChartMill assigns a fundamental rating of 5 / 10 to 1ERICB.MI.
Can you provide the valuation status for ERICSSON LM-B SHS?
ChartMill assigns a valuation rating of 7 / 10 to ERICSSON LM-B SHS (1ERICB.MI). This can be considered as Undervalued.
How profitable is ERICSSON LM-B SHS (1ERICB.MI) stock?
ERICSSON LM-B SHS (1ERICB.MI) has a profitability rating of 6 / 10.
What are the PE and PB ratios of ERICSSON LM-B SHS (1ERICB.MI) stock?
The Price/Earnings (PE) ratio for ERICSSON LM-B SHS (1ERICB.MI) is 13.63 and the Price/Book (PB) ratio is 2.89.
Is the dividend of ERICSSON LM-B SHS sustainable?
The dividend rating of ERICSSON LM-B SHS (1ERICB.MI) is 6 / 10 and the dividend payout ratio is 37.84%.