ERICSSON LM-B SHS (1ERICB.MI) Stock Fundamental Analysis
BIT:1ERICB - Euronext Milan - SE0000108656 - Common Stock - Currency: EUR
1ERICB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 25 industry peers in the Communications Equipment industry. 1ERICB has only an average score on both its financial health and profitability. 1ERICB is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
1ERICB had positive earnings in the past year.
In the past year 1ERICB had a positive cash flow from operations.
Of the past 5 years 1ERICB 4 years were profitable.
Each year in the past 5 years 1ERICB had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.01%, 1ERICB perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
1ERICB has a Return On Equity (0.02%) which is comparable to the rest of the industry.
The Return On Invested Capital of 1ERICB (10.62%) is better than 92.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.01% | ||
| ROE | 0.02% | ||
| ROIC | 10.62% |
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
Looking at the Profit Margin, with a value of 0.01%, 1ERICB is in line with its industry, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Profit Margin of 1ERICB has declined.
Looking at the Operating Margin, with a value of 9.17%, 1ERICB is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
1ERICB's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 44.95%, 1ERICB is doing worse than 60.00% 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 | 9.17% | ||
| PM (TTM) | 0.01% | ||
| GM | 44.95% |
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.
1ERICB has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
The Debt to FCF ratio of 1ERICB is 1.07, which is an excellent value as it means it would take 1ERICB, only 1.07 years of fcf income to pay off all of its debts.
1ERICB has a better Debt to FCF ratio (1.07) than 84.00% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that 1ERICB is not too dependend on debt financing.
The Debt to Equity ratio of 1ERICB (0.40) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | N/A |
ROIC/WACC1.45
WACC7.35%
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.
The Current ratio of 1ERICB (1.17) is worse than 84.00% of its industry peers.
1ERICB has a Quick Ratio of 1.17. This is a bad value and indicates that 1ERICB is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.96, 1ERICB is doing worse than 72.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The earnings per share for 1ERICB have decreased strongly by -60.46% in the last year.
1ERICB shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -17.01% yearly.
Looking at the last year, 1ERICB shows a decrease in Revenue. The Revenue has decreased by -5.87% in the last year.
1ERICB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.76% yearly.
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
Based on estimates for the next years, 1ERICB will show a small growth in Revenue. The Revenue will grow by 4.46% on average per year.
EPS Next Y285.55%
EPS Next 2Y98.48%
EPS Next 3Y63.32%
EPS Next 5Y45.47%
Revenue Next Year3.46%
Revenue Next 2Y2.8%
Revenue Next 3Y2.62%
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
Based on the Price/Earnings ratio of 44.77, the valuation of 1ERICB can be described as expensive.
1ERICB's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.79, 1ERICB is valued quite expensively.
A Price/Forward Earnings ratio of 11.87 indicates a reasonable valuation of 1ERICB.
96.00% 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 (21.38), we can say 1ERICB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.78 | ||
| Fwd PE | 11.87 |
4.2 Price Multiples
92.00% of the companies in the same industry are more expensive than 1ERICB, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, 1ERICB is valued cheaply inside the industry as 84.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.11 | ||
| EV/EBITDA | 4.89 |
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.
1ERICB's earnings are expected to grow with 63.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.16
PEG (5Y)N/A
EPS Next 2Y98.48%
EPS Next 3Y63.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.27%, 1ERICB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.66, 1ERICB pays a better dividend. On top of this 1ERICB pays more dividend than 84.00% of the companies listed in the same industry.
1ERICB's Dividend Yield is a higher than the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
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
1ERICB pays out 46165.00% of its income as dividend. This is not a sustainable payout ratio.
The dividend of 1ERICB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP46165%
EPS Next 2Y98.48%
EPS Next 3Y63.32%
BIT:1ERICB (4/16/2025, 7:00:00 PM)
7.164
-0.45 (-5.96%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners52.48%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap23.88B
Analysts54.48
Price Target7.83 (9.3%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.27% |
Yearly Dividend0.25
Dividend Growth(5Y)21.64%
DP46165%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.72%
Min EPS beat(2)-10.72%
Max EPS beat(2)20.16%
EPS beat(4)2
Avg EPS beat(4)-104.77%
Min EPS beat(4)-588.91%
Max EPS beat(4)160.39%
EPS beat(8)6
Avg EPS beat(8)-35.13%
EPS beat(12)6
Avg EPS beat(12)-28.13%
EPS beat(16)8
Avg EPS beat(16)-17.87%
Revenue beat(2)0
Avg Revenue beat(2)-0.57%
Min Revenue beat(2)-0.69%
Max Revenue beat(2)-0.45%
Revenue beat(4)1
Avg Revenue beat(4)-0.49%
Min Revenue beat(4)-2.48%
Max Revenue beat(4)1.67%
Revenue beat(8)2
Avg Revenue beat(8)-1.21%
Revenue beat(12)6
Avg Revenue beat(12)-0.41%
Revenue beat(16)7
Avg Revenue beat(16)-1.15%
PT rev (1m)3.98%
PT rev (3m)13.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)31.93%
EPS NY rev (1m)-1.88%
EPS NY rev (3m)2.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.06%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.78 | ||
| Fwd PE | 11.87 | ||
| P/S | 1.05 | ||
| P/FCF | 6.11 | ||
| P/OCF | 5.63 | ||
| P/B | 2.76 | ||
| P/tB | 10.15 | ||
| EV/EBITDA | 4.89 |
EPS(TTM)0.16
EY2.23%
EPS(NY)0.6
Fwd EY8.42%
FCF(TTM)1.17
FCFY16.36%
OCF(TTM)1.27
OCFY17.76%
SpS6.82
BVpS2.59
TBVpS0.71
PEG (NY)0.16
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.01% | ||
| ROE | 0.02% | ||
| ROCE | 14.16% | ||
| ROIC | 10.62% | ||
| ROICexc | 16.38% | ||
| ROICexgc | 48.1% | ||
| OM | 9.17% | ||
| PM (TTM) | 0.01% | ||
| GM | 44.95% | ||
| FCFM | 17.19% |
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-Score5
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 1.07 | ||
| Debt/EBITDA | 0.77 | ||
| Cap/Depr | 14.14% | ||
| Cap/Sales | 1.47% | ||
| Interest Coverage | 7.47 | ||
| Cash Conversion | 95.45% | ||
| Profit Quality | 213105% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | N/A |
F-Score5
WACC7.35%
ROIC/WACC1.45
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 Y285.55%
EPS Next 2Y98.48%
EPS Next 3Y63.32%
EPS Next 5Y45.47%
Revenue 1Y (TTM)-5.87%
Revenue growth 3Y2.19%
Revenue growth 5Y1.76%
Sales Q2Q%1.44%
Revenue Next Year3.46%
Revenue Next 2Y2.8%
Revenue Next 3Y2.62%
Revenue Next 5Y4.46%
EBIT growth 1Y12.14%
EBIT growth 3Y-35.01%
EBIT growth 5Y-3.88%
EBIT Next Year79.02%
EBIT Next 3Y30.29%
EBIT Next 5Y16.92%
FCF growth 1Y2396.84%
FCF growth 3Y7.36%
FCF growth 5Y33.08%
OCF growth 1Y544.57%
OCF growth 3Y5.8%
OCF growth 5Y22.35%