ERICSSON LM-B SHS (1ERICB.MI) Fundamental Analysis & Valuation

BIT:1ERICB • SE0000108656

Current stock price

9.106 EUR
+0.93 (+11.37%)
Last:

This 1ERICB.MI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. 1ERICB.MI Profitability Analysis

1.1 Basic Checks

  • 1ERICB had positive earnings in the past year.
  • 1ERICB had a positive operating cash flow in the past year.
  • 1ERICB had positive earnings in 4 of the past 5 years.
  • In the past 5 years 1ERICB always reported a positive cash flow from operatings.
1ERICB.MI Yearly Net Income VS EBIT VS OCF VS FCF1ERICB.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20B -20B 40B

1.2 Ratios

  • With an excellent Return On Assets value of 10.18%, 1ERICB belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
  • 1ERICB has a Return On Equity of 25.95%. This is amongst the best in the industry. 1ERICB outperforms 93.75% of its industry peers.
  • 1ERICB's Return On Invested Capital of 14.85% is amongst the best of the industry. 1ERICB outperforms 90.63% of its industry peers.
Industry RankSector Rank
ROA 10.18%
ROE 25.95%
ROIC 14.85%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1ERICB.MI Yearly ROA, ROE, ROIC1ERICB.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 -20 -30

1.3 Margins

  • With an excellent Profit Margin value of 12.01%, 1ERICB belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
  • 1ERICB's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 14.08%, 1ERICB belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
  • In the last couple of years the Operating Margin of 1ERICB has grown nicely.
  • The Gross Margin of 1ERICB (48.14%) is better than 62.50% of its industry peers.
  • In the last couple of years the Gross Margin of 1ERICB has grown nicely.
Industry RankSector Rank
OM 14.08%
PM (TTM) 12.01%
GM 48.14%
OM growth 3Y7.92%
OM growth 5Y2.1%
PM growth 3Y20.32%
PM growth 5Y9.81%
GM growth 3Y4.83%
GM growth 5Y3.45%
1ERICB.MI Yearly Profit, Operating, Gross Margins1ERICB.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40

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5

2. 1ERICB.MI Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1ERICB is creating value.
  • 1ERICB has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
1ERICB.MI Yearly Shares Outstanding1ERICB.MI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B
1ERICB.MI Yearly Total Debt VS Total Assets1ERICB.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 100B 200B 300B

2.2 Solvency

  • 1ERICB has a debt to FCF ratio of 1.38. This is a very positive value and a sign of high solvency as it would only need 1.38 years to pay back of all of its debts.
  • 1ERICB's Debt to FCF ratio of 1.38 is amongst the best of the industry. 1ERICB outperforms 81.25% of its industry peers.
  • A Debt/Equity ratio of 0.32 indicates that 1ERICB is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.32, 1ERICB is in line with its industry, outperforming 53.13% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.38
Altman-Z N/A
ROIC/WACC1.84
WACC8.06%
1ERICB.MI Yearly LT Debt VS Equity VS FCF1ERICB.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

2.3 Liquidity

  • 1ERICB has a Current Ratio of 1.29. This is a normal value and indicates that 1ERICB is financially healthy and should not expect problems in meeting its short term obligations.
  • 1ERICB has a Current ratio of 1.29. This is in the lower half of the industry: 1ERICB underperforms 68.75% of its industry peers.
  • 1ERICB has a Quick Ratio of 1.08. This is a normal value and indicates that 1ERICB is financially healthy and should not expect problems in meeting its short term obligations.
  • 1ERICB has a Quick ratio of 1.08. This is in the lower half of the industry: 1ERICB underperforms 62.50% of its industry peers.
Industry RankSector Rank
Current Ratio 1.29
Quick Ratio 1.08
1ERICB.MI Yearly Current Assets VS Current Liabilites1ERICB.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B

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3

3. 1ERICB.MI Growth Analysis

3.1 Past

  • 1ERICB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 440.40%, which is quite impressive.
  • The Earnings Per Share has been growing by 9.62% on average over the past years. This is quite good.
  • The Revenue has decreased by -4.52% in the past year.
  • Measured over the past years, 1ERICB shows a small growth in Revenue. The Revenue has been growing by 0.37% on average per year.
EPS 1Y (TTM)440.4%
EPS 3Y13.71%
EPS 5Y9.62%
EPS Q2Q%36.79%
Revenue 1Y (TTM)-4.52%
Revenue growth 3Y-4.48%
Revenue growth 5Y0.37%
Sales Q2Q%-4.98%

3.2 Future

  • The Earnings Per Share is expected to decrease by -11.72% on average over the next years. This is quite bad
  • The Revenue is expected to decrease by -0.79% on average over the next years.
EPS Next Y-27.33%
EPS Next 2Y-12.81%
EPS Next 3Y-11.16%
EPS Next 5Y-11.72%
Revenue Next Year-0.39%
Revenue Next 2Y0.82%
Revenue Next 3Y0.13%
Revenue Next 5Y-0.79%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
1ERICB.MI Yearly Revenue VS Estimates1ERICB.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 50B 100B 150B 200B 250B
1ERICB.MI Yearly EPS VS Estimates1ERICB.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 2 -2 4 6 8

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7

4. 1ERICB.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 10.59 indicates a reasonable valuation of 1ERICB.
  • 1ERICB's Price/Earnings ratio is rather cheap when compared to the industry. 1ERICB is cheaper than 96.88% of the companies in the same industry.
  • 1ERICB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.21.
  • With a Price/Forward Earnings ratio of 14.49, 1ERICB is valued correctly.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of 1ERICB indicates a rather cheap valuation: 1ERICB is cheaper than 93.75% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of 1ERICB to the average of the S&P500 Index (23.13), we can say 1ERICB is valued slightly cheaper.
Industry RankSector Rank
PE 10.59
Fwd PE 14.49
1ERICB.MI Price Earnings VS Forward Price Earnings1ERICB.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • 1ERICB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. 1ERICB is cheaper than 90.63% of the companies in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1ERICB indicates a rather cheap valuation: 1ERICB is cheaper than 81.25% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 11.1
EV/EBITDA 6.93
1ERICB.MI Per share data1ERICB.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

  • 1ERICB has an outstanding profitability rating, which may justify a higher PE ratio.
  • A cheap valuation may be justified as 1ERICB's earnings are expected to decrease with -11.16% in the coming years.
PEG (NY)N/A
PEG (5Y)1.1
EPS Next 2Y-12.81%
EPS Next 3Y-11.16%

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7

5. 1ERICB.MI Dividend Analysis

5.1 Amount

  • 1ERICB has a Yearly Dividend Yield of 3.02%.
  • Compared to an average industry Dividend Yield of 2.50, 1ERICB pays a better dividend. On top of this 1ERICB pays more dividend than 93.75% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, 1ERICB pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.02%

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

  • 1ERICB pays out 33.58% of its income as dividend. This is a sustainable payout ratio.
DP33.58%
EPS Next 2Y-12.81%
EPS Next 3Y-11.16%
1ERICB.MI Yearly Income VS Free CF VS Dividend1ERICB.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20B -20B 40B
1ERICB.MI Dividend Payout.1ERICB.MI Dividend Payout, showing the Payout Ratio.1ERICB.MI Dividend Payout.PayoutRetained Earnings

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1ERICB.MI Fundamentals: All Metrics, Ratios and Statistics

ERICSSON LM-B SHS

BIT:1ERICB (1/29/2026, 7:00:00 PM)

9.106

+0.93 (+11.37%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)01-23
Earnings (Next)04-17
Inst Owners56.85%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap30.35B
Revenue(TTM)236.68B
Net Income(TTM)28.43B
Analysts56.43
Price Target8.71 (-4.35%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.02%
Yearly Dividend0.25
Dividend Growth(5Y)22.02%
DP33.58%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)53.68%
Min EPS beat(2)29.76%
Max EPS beat(2)77.6%
EPS beat(4)4
Avg EPS beat(4)44.45%
Min EPS beat(4)20.62%
Max EPS beat(4)77.6%
EPS beat(8)6
Avg EPS beat(8)-30.16%
EPS beat(12)10
Avg EPS beat(12)-8.61%
EPS beat(16)10
Avg EPS beat(16)-9.98%
Revenue beat(2)1
Avg Revenue beat(2)1.05%
Min Revenue beat(2)-0.88%
Max Revenue beat(2)2.98%
Revenue beat(4)1
Avg Revenue beat(4)-1.6%
Min Revenue beat(4)-6.39%
Max Revenue beat(4)2.98%
Revenue beat(8)2
Avg Revenue beat(8)-1.04%
Revenue beat(12)3
Avg Revenue beat(12)-1.34%
Revenue beat(16)7
Avg Revenue beat(16)-0.7%
PT rev (1m)22.38%
PT rev (3m)22.38%
EPS NQ rev (1m)28.09%
EPS NQ rev (3m)28.09%
EPS NY rev (1m)9.49%
EPS NY rev (3m)9.49%
Revenue NQ rev (1m)-2.93%
Revenue NQ rev (3m)-2.93%
Revenue NY rev (1m)-2.66%
Revenue NY rev (3m)-2.66%
Valuation
Industry RankSector Rank
PE 10.59
Fwd PE 14.49
P/S 1.37
P/FCF 11.1
P/OCF 9.83
P/B 2.96
P/tB 6.09
EV/EBITDA 6.93
EPS(TTM)0.86
EY9.44%
EPS(NY)0.63
Fwd EY6.9%
FCF(TTM)0.82
FCFY9.01%
OCF(TTM)0.93
OCFY10.17%
SpS6.65
BVpS3.08
TBVpS1.49
PEG (NY)N/A
PEG (5Y)1.1
Graham Number7.72
Profitability
Industry RankSector Rank
ROA 10.18%
ROE 25.95%
ROCE 19.8%
ROIC 14.85%
ROICexc 22.38%
ROICexgc 45.21%
OM 14.08%
PM (TTM) 12.01%
GM 48.14%
FCFM 12.33%
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
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y7.92%
OM growth 5Y2.1%
PM growth 3Y20.32%
PM growth 5Y9.81%
GM growth 3Y4.83%
GM growth 5Y3.45%
F-Score7
Asset Turnover0.85
Health
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.38
Debt/EBITDA 0.82
Cap/Depr 40.77%
Cap/Sales 1.59%
Interest Coverage 15.11
Cash Conversion 77.43%
Profit Quality 102.67%
Current Ratio 1.29
Quick Ratio 1.08
Altman-Z N/A
F-Score7
WACC8.06%
ROIC/WACC1.84
Cap/Depr(3y)40.93%
Cap/Depr(5y)47.07%
Cap/Sales(3y)1.71%
Cap/Sales(5y)1.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)440.4%
EPS 3Y13.71%
EPS 5Y9.62%
EPS Q2Q%36.79%
EPS Next Y-27.33%
EPS Next 2Y-12.81%
EPS Next 3Y-11.16%
EPS Next 5Y-11.72%
Revenue 1Y (TTM)-4.52%
Revenue growth 3Y-4.48%
Revenue growth 5Y0.37%
Sales Q2Q%-4.98%
Revenue Next Year-0.39%
Revenue Next 2Y0.82%
Revenue Next 3Y0.13%
Revenue Next 5Y-0.79%
EBIT growth 1Y45.04%
EBIT growth 3Y3.08%
EBIT growth 5Y2.47%
EBIT Next Year7.3%
EBIT Next 3Y6.82%
EBIT Next 5Y-0.23%
FCF growth 1Y-31.52%
FCF growth 3Y5.77%
FCF growth 5Y4.32%
OCF growth 1Y-28.77%
OCF growth 3Y2.21%
OCF growth 5Y2.64%

ERICSSON LM-B SHS / 1ERICB.MI Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for ERICSSON LM-B SHS?

ChartMill assigns a fundamental rating of 6 / 10 to 1ERICB.MI.


What is the valuation status of ERICSSON LM-B SHS (1ERICB.MI) stock?

ChartMill assigns a valuation rating of 8 / 10 to ERICSSON LM-B SHS (1ERICB.MI). This can be considered as Undervalued.


Can you provide the profitability details for ERICSSON LM-B SHS?

ERICSSON LM-B SHS (1ERICB.MI) has a profitability rating of 7 / 10.


Can you provide the financial health for 1ERICB stock?

The financial health rating of ERICSSON LM-B SHS (1ERICB.MI) is 4 / 10.


Is the dividend of ERICSSON LM-B SHS sustainable?

The dividend rating of ERICSSON LM-B SHS (1ERICB.MI) is 8 / 10 and the dividend payout ratio is 33.58%.