ERICSSON LM-B SHS (1ERICB.MI) Stock Fundamental Analysis
BIT:1ERICB - Borsa Italiana Milan - SE0000108656 - Common Stock - Currency: EUR
Taking everything into account, 1ERICB scores 4 out of 10 in our fundamental rating. 1ERICB was compared to 25 industry peers in the Communications Equipment industry. 1ERICB has an average financial health and profitability rating. 1ERICB has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year 1ERICB was profitable.
1ERICB had a positive operating cash flow in the past year.
1ERICB had positive earnings in 4 of the past 5 years.
1ERICB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -0.50%, 1ERICB perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
1ERICB's Return On Equity of -1.58% is in line compared to the rest of the industry. 1ERICB outperforms 56.00% of its industry peers.
With an excellent Return On Invested Capital value of 9.84%, 1ERICB belongs to the best of the industry, outperforming 92.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.5% | ||
| ROE | -1.58% | ||
| ROIC | 9.84% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
In the last couple of years the Profit Margin of 1ERICB has declined.
1ERICB's Operating Margin of 8.16% is fine compared to the rest of the industry. 1ERICB outperforms 68.00% of its industry peers.
1ERICB's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 43.44%, 1ERICB is doing worse than 64.00% 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 | 8.16% | ||
| PM (TTM) | N/A | ||
| GM | 43.44% |
OM growth 3Y-36.4%
OM growth 5Y-5.54%
PM growth 3Y-90.62%
PM growth 5Y-61.69%
GM growth 3Y1.11%
GM growth 5Y3.7%
2. Health
2.1 Basic Checks
1ERICB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
There is no outstanding debt for 1ERICB. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
1ERICB has a debt to FCF ratio of 1.11. This is a very positive value and a sign of high solvency as it would only need 1.11 years to pay back of all of its debts.
1ERICB has a Debt to FCF ratio of 1.11. This is amongst the best in the industry. 1ERICB outperforms 92.00% of its industry peers.
1ERICB has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
1ERICB has a Debt to Equity ratio of 0.44. This is comparable to the rest of the industry: 1ERICB outperforms 52.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | N/A |
ROIC/WACC1.43
WACC6.88%
2.3 Liquidity
1ERICB has a Current Ratio of 1.19. This is a normal value and indicates that 1ERICB is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.19, 1ERICB is not doing good in the industry: 76.00% of the companies in the same industry are doing better.
1ERICB has a Quick Ratio of 1.19. This is a bad value and indicates that 1ERICB is not financially healthy enough and could expect problems in meeting its short term obligations.
1ERICB has a Quick ratio of 0.95. This is in the lower half of the industry: 1ERICB underperforms 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
1ERICB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -60.46%.
Measured over the past years, 1ERICB shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -17.01% on average per year.
Looking at the last year, 1ERICB shows a decrease in Revenue. The Revenue has decreased by -5.87% in the last year.
The Revenue has been growing slightly by 1.76% on average over the past years.
EPS 1Y (TTM)-60.46%
EPS 3Y-38.27%
EPS 5Y-17.01%
EPS Q2Q%22.54%
Revenue 1Y (TTM)-5.87%
Revenue growth 3Y2.19%
Revenue growth 5Y1.76%
Sales Q2Q%1.44%
3.2 Future
The Earnings Per Share is expected to grow by 45.47% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 4.46% on average over the next years.
EPS Next Y292.93%
EPS Next 2Y100.23%
EPS Next 3Y66.47%
EPS Next 5Y45.47%
Revenue Next Year3.62%
Revenue Next 2Y3.08%
Revenue Next 3Y1.98%
Revenue Next 5Y4.46%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 50.45, which means the current valuation is very expensive for 1ERICB.
1ERICB's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.47, 1ERICB is valued quite expensively.
1ERICB is valuated correctly with a Price/Forward Earnings ratio of 12.88.
76.00% of the companies in the same industry are more expensive than 1ERICB, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of 1ERICB to the average of the S&P500 Index (92.74), we can say 1ERICB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.45 | ||
| Fwd PE | 12.88 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1ERICB is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, 1ERICB is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.32 | ||
| EV/EBITDA | 8.83 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as 1ERICB's earnings are expected to grow with 66.47% in the coming years.
PEG (NY)0.17
PEG (5Y)N/A
EPS Next 2Y100.23%
EPS Next 3Y66.47%
5. Dividend
5.1 Amount
1ERICB has a Yearly Dividend Yield of 3.16%.
1ERICB's Dividend Yield is rather good when compared to the industry average which is at 3.61. 1ERICB pays more dividend than 84.00% of the companies in the same industry.
1ERICB's Dividend Yield is a higher than the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
5.2 History
The dividend of 1ERICB is nicely growing with an annual growth rate of 21.64%!
Dividend Growth(5Y)21.64%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of 1ERICB are negative and hence is the payout ratio. 1ERICB will probably not be able to sustain this dividend level.
The dividend of 1ERICB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-667.4%
EPS Next 2Y100.23%
EPS Next 3Y66.47%
ERICSSON LM-B SHS
BIT:1ERICB (1/27/2025, 7:00:00 PM)
7.568
-0.69 (-8.4%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners40.83%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap25.22B
Analysts55.17
Price Target7.53 (-0.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
Yearly Dividend2.7
Dividend Growth(5Y)21.64%
DP-667.4%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-284.38%
Min EPS beat(2)-588.91%
Max EPS beat(2)20.16%
EPS beat(4)3
Avg EPS beat(4)-94.09%
Min EPS beat(4)-588.91%
Max EPS beat(4)160.39%
EPS beat(8)6
Avg EPS beat(8)-34.73%
EPS beat(12)7
Avg EPS beat(12)-23.13%
EPS beat(16)9
Avg EPS beat(16)-15.73%
Revenue beat(2)1
Avg Revenue beat(2)0.49%
Min Revenue beat(2)-0.69%
Max Revenue beat(2)1.67%
Revenue beat(4)1
Avg Revenue beat(4)-2.16%
Min Revenue beat(4)-7.15%
Max Revenue beat(4)1.67%
Revenue beat(8)3
Avg Revenue beat(8)-1.03%
Revenue beat(12)7
Avg Revenue beat(12)-0.09%
Revenue beat(16)8
Avg Revenue beat(16)-1.07%
PT rev (1m)8.99%
PT rev (3m)8.99%
EPS NQ rev (1m)-1.85%
EPS NQ rev (3m)-1.85%
EPS NY rev (1m)4.29%
EPS NY rev (3m)4.29%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)0.32%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.45 | ||
| Fwd PE | 12.88 | ||
| P/S | 1.17 | ||
| P/FCF | 7.32 | ||
| P/OCF | 6.66 | ||
| P/B | 3.32 | ||
| P/tB | 13.06 | ||
| EV/EBITDA | 8.83 |
EPS(TTM)0.15
EY1.98%
EPS(NY)0.59
Fwd EY7.77%
FCF(TTM)1.03
FCFY13.65%
OCF(TTM)1.14
OCFY15.01%
SpS6.49
BVpS2.28
TBVpS0.58
PEG (NY)0.17
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.5% | ||
| ROE | -1.58% | ||
| ROCE | 13.12% | ||
| ROIC | 9.84% | ||
| ROICexc | 14.24% | ||
| ROICexgc | 36.35% | ||
| OM | 8.16% | ||
| PM (TTM) | N/A | ||
| GM | 43.44% | ||
| FCFM | 15.92% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-36.4%
OM growth 5Y-5.54%
PM growth 3Y-90.62%
PM growth 5Y-61.69%
GM growth 3Y1.11%
GM growth 5Y3.7%
F-Score4
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.11 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 36.02% | ||
| Cap/Sales | 1.59% | ||
| Interest Coverage | 6.62 | ||
| Cash Conversion | 139.28% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | N/A |
F-Score4
WACC6.88%
ROIC/WACC1.43
Cap/Depr(3y)39.65%
Cap/Depr(5y)46.92%
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)-60.46%
EPS 3Y-38.27%
EPS 5Y-17.01%
EPS Q2Q%22.54%
EPS Next Y292.93%
EPS Next 2Y100.23%
EPS Next 3Y66.47%
EPS Next 5Y45.47%
Revenue 1Y (TTM)-5.87%
Revenue growth 3Y2.19%
Revenue growth 5Y1.76%
Sales Q2Q%1.44%
Revenue Next Year3.62%
Revenue Next 2Y3.08%
Revenue Next 3Y1.98%
Revenue Next 5Y4.46%
EBIT growth 1Y-13.58%
EBIT growth 3Y-35.01%
EBIT growth 5Y-3.88%
EBIT Next Year72.82%
EBIT Next 3Y28.77%
EBIT Next 5Y15.89%
FCF growth 1Y536.89%
FCF growth 3Y7.36%
FCF growth 5Y33.08%
OCF growth 1Y243.37%
OCF growth 3Y5.8%
OCF growth 5Y22.35%