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

Europe • Frankfurt Stock Exchange • FRA:ERCB • SE0000108656

9.364 EUR
+0 (+0.04%)
Last: Feb 6, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership
Fundamental Rating

5

Taking everything into account, ERCB scores 5 out of 10 in our fundamental rating. ERCB was compared to 30 industry peers in the Communications Equipment industry. While ERCB belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ERCB has a valuation in line with the averages, but on the other hand it scores bad on growth. ERCB also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

7

1. Profitability

1.1 Basic Checks

  • In the past year ERCB was profitable.
  • In the past year ERCB had a positive cash flow from operations.
  • ERCB had positive earnings in 4 of the past 5 years.
  • Each year in the past 5 years ERCB had a positive operating cash flow.
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

  • The Return On Assets of ERCB (10.18%) is better than 83.33% of its industry peers.
  • ERCB's Return On Equity of 25.95% is amongst the best of the industry. ERCB outperforms 93.33% of its industry peers.
  • ERCB has a better Return On Invested Capital (8.85%) than 73.33% of its industry peers.
Industry RankSector Rank
ROA 10.18%
ROE 25.95%
ROIC 8.85%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
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

  • With an excellent Profit Margin value of 12.01%, ERCB belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
  • ERCB's Profit Margin has improved in the last couple of years.
  • ERCB has a better Operating Margin (14.08%) than 83.33% of its industry peers.
  • In the last couple of years the Operating Margin of ERCB has grown nicely.
  • Looking at the Gross Margin, with a value of 48.14%, ERCB is in line with its industry, outperforming 60.00% of the companies in the same industry.
  • ERCB's Gross Margin has improved in the last couple of years.
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%
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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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ERCB is still creating some value.
  • ERCB has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
ERCB.DE Yearly Shares OutstandingERCB.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 100B 200B 300B

2.2 Solvency

  • The Debt to FCF ratio of ERCB is 1.38, which is an excellent value as it means it would take ERCB, only 1.38 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 1.38, ERCB is doing good in the industry, outperforming 80.00% of the companies in the same industry.
  • ERCB has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
  • ERCB has a Debt to Equity ratio (0.32) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.38
Altman-Z N/A
ROIC/WACC1.3
WACC6.81%
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: 70.00% of the companies in the same industry are doing better.
  • A Quick Ratio of 1.08 indicates that ERCB should not have too much problems paying its short term obligations.
  • ERCB has a worse Quick ratio (1.08) than 63.33% 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 50B 100B 150B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 440.40% over the past year.
  • Measured over the past years, ERCB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.62% on average per year.
  • The Revenue has decreased by -4.52% in the past year.
  • 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 very negative growth in Earnings Per Share. The EPS will decrease by -11.72% on average per year.
  • Based on estimates for the next years, ERCB will show a decrease in Revenue. The Revenue will decrease by -0.79% on average per year.
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

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • The Revenue growth rate is decreasing: in the next years the growth will be less 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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6

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 10.89, the valuation of ERCB can be described as reasonable.
  • Based on the Price/Earnings ratio, ERCB is valued cheaper than 96.67% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of ERCB to the average of the S&P500 Index (28.06), we can say ERCB is valued rather cheaply.
  • A Price/Forward Earnings ratio of 14.90 indicates a correct valuation of ERCB.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ERCB indicates a rather cheap valuation: ERCB is cheaper than 93.33% of the companies listed in the same industry.
  • ERCB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 27.86, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 10.89
Fwd PE 14.9
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 cheaply inside the industry as 90.00% of the companies are valued more expensively.
  • ERCB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ERCB is cheaper than 80.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 11.41
EV/EBITDA 7.14
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 decent profitability rating of ERCB may justify a higher PE ratio.
  • ERCB's earnings are expected to decrease with -11.16% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.13
EPS Next 2Y-12.81%
EPS Next 3Y-11.16%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 3.02%, ERCB has a reasonable but not impressive dividend return.
  • ERCB's Dividend Yield is rather good when compared to the industry average which is at 2.53. ERCB pays more dividend than 93.33% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.80, ERCB pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.02%

5.2 History

  • The dividend of ERCB is nicely growing with an annual growth rate of 22.02%!
Dividend Growth(5Y)22.02%
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

  • ERCB 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%
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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ERICSSON LM-B SHS

FRA:ERCB (2/6/2026, 7:00:00 PM)

9.364

+0 (+0.04%)

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 Cap31.21B
Revenue(TTM)236.68B
Net Income(TTM)28.43B
Analysts56.43
Price Target8.7 (-7.09%)
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 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)8.07%
PT rev (3m)9.94%
EPS NQ rev (1m)5.08%
EPS NQ rev (3m)2.87%
EPS NY rev (1m)1.01%
EPS NY rev (3m)1.58%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)-0.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.38%
Valuation
Industry RankSector Rank
PE 10.89
Fwd PE 14.9
P/S 1.41
P/FCF 11.41
P/OCF 10.11
P/B 3.04
P/tB 6.27
EV/EBITDA 7.14
EPS(TTM)0.86
EY9.18%
EPS(NY)0.63
Fwd EY6.71%
FCF(TTM)0.82
FCFY8.76%
OCF(TTM)0.93
OCFY9.89%
SpS6.65
BVpS3.08
TBVpS1.49
PEG (NY)N/A
PEG (5Y)1.13
Graham Number7.72
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)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
WACC6.81%
ROIC/WACC1.3
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 / ERCB.DE FAQ

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

ChartMill assigns a fundamental rating of 5 / 10 to ERCB.DE.


What is the valuation status for ERCB stock?

ChartMill assigns a valuation rating of 6 / 10 to ERICSSON LM-B SHS (ERCB.DE). This can be considered as Fairly Valued.


What is the profitability of ERCB stock?

ERICSSON LM-B SHS (ERCB.DE) has a profitability rating of 7 / 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 10.89 and the Price/Book (PB) ratio is 3.04.


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 4 / 10.