ERICSSON LM-B SHS (ERCB.DE) Fundamental Analysis & Valuation

FRA:ERCB • SE0000108656

Current stock price

9.732 EUR
-0.34 (-3.4%)
Last:

This ERCB.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. ERCB.DE Profitability Analysis

1.1 Basic Checks

  • ERCB had positive earnings in the past year.
  • ERCB had a positive operating cash flow in the past year.
  • Of the past 5 years ERCB 4 years were profitable.
  • ERCB had a positive operating cash flow in each of the past 5 years.
ERCB.DE Yearly Net Income VS EBIT VS OCF VS FCFERCB.DE 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%, ERCB belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
  • ERCB has a Return On Equity of 25.95%. This is amongst the best in the industry. ERCB outperforms 87.50% of its industry peers.
  • ERCB has a Return On Invested Capital of 8.85%. This is in the better half of the industry: ERCB outperforms 75.00% of its industry peers.
  • ERCB had an Average Return On Invested Capital over the past 3 years of 6.69%. This is below the industry average of 10.96%.
  • The last Return On Invested Capital (8.85%) for ERCB is above the 3 year average (6.69%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 10.18%
ROE 25.95%
ROIC 8.85%
ROA(3y)0.43%
ROA(5y)2.81%
ROE(3y)-0.28%
ROE(5y)6.78%
ROIC(3y)6.69%
ROIC(5y)6.97%
ERCB.DE Yearly ROA, ROE, ROICERCB.DE 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

  • ERCB has a Profit Margin of 12.01%. This is amongst the best in the industry. ERCB outperforms 84.38% of its industry peers.
  • ERCB's Profit Margin has improved in the last couple of years.
  • The Operating Margin of ERCB (14.08%) is better than 81.25% of its industry peers.
  • In the last couple of years the Operating Margin of ERCB has grown nicely.
  • ERCB has a Gross Margin of 48.14%. This is in the better half of the industry: ERCB outperforms 62.50% of its industry peers.
  • In the last couple of years the Gross Margin of ERCB has grown nicely.
Industry RankSector Rank
OM 14.08%
PM (TTM) 12.01%
GM 48.14%
OM growth 3Y7.54%
OM growth 5Y1.88%
PM growth 3Y20.32%
PM growth 5Y9.81%
GM growth 3Y4.83%
GM growth 5Y3.45%
ERCB.DE Yearly Profit, Operating, Gross MarginsERCB.DE 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. ERCB.DE Health Analysis

2.1 Basic Checks

  • ERCB has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • ERCB has about the same amout of shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, ERCB has about the same amount of shares outstanding.
  • Compared to 1 year ago, ERCB has an improved debt to assets ratio.
ERCB.DE Yearly Shares OutstandingERCB.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B
ERCB.DE Yearly Total Debt VS Total AssetsERCB.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100B 200B 300B

2.2 Solvency

  • ERCB 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.
  • With an excellent Debt to FCF ratio value of 1.38, ERCB belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
  • A Debt/Equity ratio of 0.32 indicates that ERCB is not too dependend on debt financing.
  • ERCB has a Debt to Equity ratio (0.32) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.38
Altman-Z N/A
ROIC/WACC1.57
WACC5.64%
ERCB.DE Yearly LT Debt VS Equity VS FCFERCB.DE 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

  • A Current Ratio of 1.29 indicates that ERCB should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.29, ERCB is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
  • ERCB has a Quick Ratio of 1.08. This is a normal value and indicates that ERCB is financially healthy and should not expect problems in meeting its short term obligations.
  • ERCB's Quick ratio of 1.08 is on the low side compared to the rest of the industry. ERCB is outperformed by 62.50% of its industry peers.
Industry RankSector Rank
Current Ratio 1.29
Quick Ratio 1.08
ERCB.DE Yearly Current Assets VS Current LiabilitesERCB.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B

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4

3. ERCB.DE Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 440.40% over the past year.
  • The Earnings Per Share has been growing by 9.62% on average over the past years. This is quite good.
  • ERCB shows a decrease in Revenue. In the last year, the revenue decreased by -4.52%.
  • The Revenue has been growing slightly by 0.37% on average over the past years.
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

  • Based on estimates for the next years, ERCB will show a decrease in Earnings Per Share. The EPS will decrease by -8.08% on average per year.
  • Based on estimates for the next years, ERCB will show a small growth in Revenue. The Revenue will grow by 0.59% on average per year.
EPS Next Y-24.42%
EPS Next 2Y-10.57%
EPS Next 3Y-4.53%
EPS Next 5Y-8.08%
Revenue Next Year-1.52%
Revenue Next 2Y-0.04%
Revenue Next 3Y0.92%
Revenue Next 5Y0.59%

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 accelerating: in the next years the growth will be better than in the last years.
ERCB.DE Yearly Revenue VS EstimatesERCB.DE 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
ERCB.DE Yearly EPS VS EstimatesERCB.DE 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. ERCB.DE Valuation Analysis

4.1 Price/Earnings Ratio

  • ERCB is valuated reasonably with a Price/Earnings ratio of 11.45.
  • Compared to the rest of the industry, the Price/Earnings ratio of ERCB indicates a rather cheap valuation: ERCB is cheaper than 93.75% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 24.88. ERCB is valued rather cheaply when compared to this.
  • ERCB is valuated correctly with a Price/Forward Earnings ratio of 15.12.
  • Based on the Price/Forward Earnings ratio, ERCB is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
  • When comparing the Price/Forward Earnings ratio of ERCB to the average of the S&P500 Index (22.19), we can say ERCB is valued slightly cheaper.
Industry RankSector Rank
PE 11.45
Fwd PE 15.12
ERCB.DE Price Earnings VS Forward Price EarningsERCB.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ERCB is valued cheaper than 84.38% of the companies in the same industry.
  • ERCB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ERCB is cheaper than 81.25% of the companies in the same industry.
Industry RankSector Rank
P/FCF 12.05
EV/EBITDA 7.93
ERCB.DE Per share dataERCB.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

  • The excellent profitability rating of ERCB may justify a higher PE ratio.
  • A cheap valuation may be justified as ERCB's earnings are expected to decrease with -4.53% in the coming years.
PEG (NY)N/A
PEG (5Y)1.19
EPS Next 2Y-10.57%
EPS Next 3Y-4.53%

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6

5. ERCB.DE Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.74%, ERCB has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 2.44, ERCB pays a better dividend. On top of this ERCB pays more dividend than 93.75% of the companies listed in the same industry.
  • ERCB's Dividend Yield is a higher than the S&P500 average which is at 1.90.
Industry RankSector Rank
Dividend Yield 2.74%

5.2 History

  • On average, the dividend of ERCB grows each year by 13.68%, which is quite nice.
Dividend Growth(5Y)13.68%
Div Incr Years1
Div Non Decr Years6
ERCB.DE Yearly Dividends per shareERCB.DE Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • 33.41% of the earnings are spent on dividend by ERCB. This is a low number and sustainable payout ratio.
DP33.41%
EPS Next 2Y-10.57%
EPS Next 3Y-4.53%
ERCB.DE Yearly Income VS Free CF VS DividendERCB.DE 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
ERCB.DE Dividend Payout.ERCB.DE Dividend Payout, showing the Payout Ratio.ERCB.DE Dividend Payout.PayoutRetained Earnings

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ERCB.DE Fundamentals: All Metrics, Ratios and Statistics

ERICSSON LM-B SHS

FRA:ERCB (3/27/2026, 7:00:00 PM)

9.732

-0.34 (-3.4%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)01-23
Earnings (Next)04-17
Inst Owners57.49%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap32.44B
Revenue(TTM)236.68B
Net Income(TTM)28.43B
Analysts55.86
Price Target8.7 (-10.6%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.74%
Yearly Dividend0.26
Dividend Growth(5Y)13.68%
DP33.41%
Div Incr Years1
Div Non Decr Years6
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)0.03%
PT rev (3m)9.25%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)2.72%
EPS NY rev (1m)4%
EPS NY rev (3m)5.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.19%
Valuation
Industry RankSector Rank
PE 11.45
Fwd PE 15.12
P/S 1.49
P/FCF 12.05
P/OCF 10.67
P/B 3.21
P/tB 6.62
EV/EBITDA 7.93
EPS(TTM)0.85
EY8.73%
EPS(NY)0.64
Fwd EY6.61%
FCF(TTM)0.81
FCFY8.3%
OCF(TTM)0.91
OCFY9.37%
SpS6.55
BVpS3.03
TBVpS1.47
PEG (NY)N/A
PEG (5Y)1.19
Graham Number7.61
Profitability
Industry RankSector Rank
ROA 10.18%
ROE 25.95%
ROCE 19.8%
ROIC 8.85%
ROICexc 13.34%
ROICexgc 26.95%
OM 14.08%
PM (TTM) 12.01%
GM 48.14%
FCFM 12.33%
ROA(3y)0.43%
ROA(5y)2.81%
ROE(3y)-0.28%
ROE(5y)6.78%
ROIC(3y)6.69%
ROIC(5y)6.97%
ROICexc(3y)9.88%
ROICexc(5y)10.27%
ROICexgc(3y)24.74%
ROICexgc(5y)25.68%
ROCE(3y)14.96%
ROCE(5y)15.6%
ROICexgc growth 3Y-6.32%
ROICexgc growth 5Y4.87%
ROICexc growth 3Y14.91%
ROICexc growth 5Y1.28%
OM growth 3Y7.54%
OM growth 5Y1.88%
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 0.83
Cap/Depr 42.29%
Cap/Sales 1.59%
Interest Coverage 15.11
Cash Conversion 78.04%
Profit Quality 102.67%
Current Ratio 1.29
Quick Ratio 1.08
Altman-Z N/A
F-Score7
WACC5.64%
ROIC/WACC1.57
Cap/Depr(3y)41.44%
Cap/Depr(5y)47.37%
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-24.42%
EPS Next 2Y-10.57%
EPS Next 3Y-4.53%
EPS Next 5Y-8.08%
Revenue 1Y (TTM)-4.52%
Revenue growth 3Y-4.48%
Revenue growth 5Y0.37%
Sales Q2Q%-4.98%
Revenue Next Year-1.52%
Revenue Next 2Y-0.04%
Revenue Next 3Y0.92%
Revenue Next 5Y0.59%
EBIT growth 1Y45.04%
EBIT growth 3Y2.72%
EBIT growth 5Y2.26%
EBIT Next Year9.14%
EBIT Next 3Y5.11%
EBIT Next 5Y2.67%
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 / ERCB.DE Fundamental Analysis FAQ

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

ChartMill assigns a fundamental rating of 6 / 10 to ERCB.DE.


What is the valuation status for ERCB stock?

ChartMill assigns a valuation rating of 7 / 10 to ERICSSON LM-B SHS (ERCB.DE). This can be considered as Undervalued.


What is the profitability of ERCB stock?

ERICSSON LM-B SHS (ERCB.DE) has a profitability rating of 8 / 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 (ERCB.DE) is 11.45 and the Price/Book (PB) ratio is 3.21.


What is the financial health of ERICSSON LM-B SHS (ERCB.DE) stock?

The financial health rating of ERICSSON LM-B SHS (ERCB.DE) is 5 / 10.