ERICSSON LM-B SHS (1ERICB.MI) Stock Fundamental Analysis
Europe - BIT:1ERICB - SE0000108656 - Common Stock
8.176 EUR
-0.06 (-0.7%)
Taking everything into account, 1ERICB scores 6 out of 10 in our fundamental rating. 1ERICB was compared to 27 industry peers in the Communications Equipment industry. While 1ERICB belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1ERICB may be a bit undervalued, certainly considering the very reasonable score on growth Finally 1ERICB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
1ERICB had positive earnings in the past year.
1ERICB had a positive operating cash flow in the past year.
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
1ERICB has a Return On Assets of 8.72%. This is in the better half of the industry: 1ERICB outperforms 79.31% of its industry peers.
1ERICB has a Return On Equity of 24.01%. This is amongst the best in the industry. 1ERICB outperforms 82.76% of its industry peers.
1ERICB has a Return On Invested Capital of 14.43%. This is amongst the best in the industry. 1ERICB outperforms 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 10.70%.
The 3 year average ROIC (10.05%) for 1ERICB is below the current ROIC(14.43%), indicating increased profibility in the last year.
| 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
1ERICB has a better Profit Margin (10.26%) than 79.31% of its industry peers.
In the last couple of years the Profit Margin of 1ERICB has declined.
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.
In the last couple of years the Operating Margin of 1ERICB has grown nicely.
1ERICB has a Gross Margin of 47.62%. This is comparable to the rest of the industry: 1ERICB outperforms 51.72% of its industry peers.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1ERICB is creating value.
Compared to 1 year ago, 1ERICB has about the same amount of shares outstanding.
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.
1ERICB's Debt to FCF ratio of 1.45 is amongst the best of the industry. 1ERICB outperforms 82.76% of its industry peers.
1ERICB has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
1ERICB's Debt to Equity ratio of 0.35 is in line compared to the rest of the industry. 1ERICB outperforms 58.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 1.45 | ||
| Altman-Z | N/A |
ROIC/WACC2.22
WACC6.51%
2.3 Liquidity
1ERICB has a Current Ratio of 1.17. This is a normal value and indicates that 1ERICB is financially healthy and should not expect problems in meeting its short term obligations.
1ERICB's Current ratio of 1.17 is on the low side compared to the rest of the industry. 1ERICB is outperformed by 75.86% of its industry peers.
A Quick Ratio of 0.94 indicates that 1ERICB may have some problems paying its short term obligations.
With a Quick ratio value of 0.94, 1ERICB is not doing good in the industry: 65.52% of the companies in the same industry are doing better.
| 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.
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.
1ERICB shows a decrease in Revenue. In the last year, the revenue decreased by -2.65%.
Measured over the past years, 1ERICB shows a small growth in Revenue. The Revenue has been growing by 1.76% on average per year.
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
1ERICB is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.77% yearly.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 cheaper than 93.10% of the companies in the same industry.
1ERICB is valuated rather cheaply when we compare the Price/Earnings ratio to 26.13, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.55, 1ERICB is valued correctly.
Based on the Price/Forward Earnings ratio, 1ERICB is valued a bit cheaper than the industry average as 79.31% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.35. 1ERICB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.63 | ||
| Fwd PE | 14.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1ERICB is valued cheaply inside the industry as 82.76% of the companies are valued more expensively.
72.41% of the companies in the same industry are more expensive than 1ERICB, based on the Price/Free Cash Flow ratio.
| 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
1ERICB has a Yearly Dividend Yield of 3.18%.
1ERICB's Dividend Yield is rather good when compared to the industry average which is at 5.15. 1ERICB pays more dividend than 89.66% of the companies in the same industry.
1ERICB's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
5.2 History
The dividend of 1ERICB is nicely growing with an annual growth rate of 22.02%!
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.
What is the valuation status for 1ERICB stock?
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 is the valuation of ERICSSON LM-B SHS based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ERICSSON LM-B SHS (1ERICB.MI) is 13.63 and the Price/Book (PB) ratio is 2.89.
Can you provide the financial health for 1ERICB stock?
The financial health rating of ERICSSON LM-B SHS (1ERICB.MI) is 4 / 10.