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

Europe • Frankfurt Stock Exchange • FRA:ERCB • SE0000108656

9.362 EUR
-0.05 (-0.53%)
Last: Feb 4, 2026, 07:00 PM
Fundamental Rating

5

Overall ERCB gets a fundamental rating of 5 out of 10. We evaluated ERCB against 32 industry peers in the Communications Equipment industry. While ERCB has a great profitability rating, 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

8

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.
  • Of the past 5 years ERCB 4 years were profitable.
  • In the past 5 years ERCB always reported a positive cash flow from operatings.
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 84.38% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 25.95%, ERCB belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
  • ERCB has a Return On Invested Capital of 8.85%. This is in the better half of the industry: ERCB outperforms 71.88% 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

  • ERCB's Profit Margin of 12.01% is amongst the best of the industry. ERCB outperforms 87.50% of its industry peers.
  • ERCB's Profit Margin has improved in the last couple of years.
  • ERCB has a Operating Margin of 14.08%. This is amongst the best in the industry. ERCB outperforms 84.38% of its industry peers.
  • ERCB's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 48.14%, ERCB is in the better half of the industry, outperforming 62.50% 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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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

  • 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.
  • ERCB has a Debt to FCF ratio of 1.38. This is amongst the best in the industry. ERCB outperforms 81.25% of its industry peers.
  • 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 in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.38
Altman-Z N/A
ROIC/WACC1.23
WACC7.17%
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.
  • ERCB has a Current ratio of 1.29. This is in the lower half of the industry: ERCB underperforms 68.75% of its industry peers.
  • A Quick Ratio of 1.08 indicates that ERCB should not have too much problems paying its short term obligations.
  • ERCB has a Quick ratio of 1.08. This is in the lower half of the industry: ERCB underperforms 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 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 413.40% over the past year.
  • The Earnings Per Share has been growing by 8.51% on average over the past years. This is quite good.
  • Looking at the last year, ERCB shows a decrease in Revenue. The Revenue has decreased by -4.52% in the last year.
  • Measured over the past years, ERCB shows a small growth in Revenue. The Revenue has been growing by 0.37% on average per year.
EPS 1Y (TTM)413.4%
EPS 3Y11.79%
EPS 5Y8.51%
EPS Q2Q%15.04%
Revenue 1Y (TTM)-4.52%
Revenue growth 3Y-4.48%
Revenue growth 5Y0.37%
Sales Q2Q%-8.73%

3.2 Future

  • ERCB is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -10.81% yearly.
  • ERCB is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.79% yearly.
EPS Next Y-23.51%
EPS Next 2Y-10.55%
EPS Next 3Y-9.63%
EPS Next 5Y-10.81%
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

  • A Price/Earnings ratio of 11.28 indicates a reasonable valuation of ERCB.
  • ERCB's Price/Earnings ratio is rather cheap when compared to the industry. ERCB is cheaper than 96.88% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 28.25. ERCB is valued rather cheaply when compared to this.
  • The Price/Forward Earnings ratio is 14.76, which 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 93.75% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 27.50. ERCB is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 11.28
Fwd PE 14.76
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

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ERCB is valued cheaper than 90.63% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, ERCB is valued a bit cheaper than 78.13% of the companies in the same industry.
Industry RankSector Rank
P/FCF 11.31
EV/EBITDA 7.07
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 -9.63% in the coming years.
PEG (NY)N/A
PEG (5Y)1.33
EPS Next 2Y-10.55%
EPS Next 3Y-9.63%

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

7

5. Dividend

5.1 Amount

  • ERCB has a Yearly Dividend Yield of 3.12%.
  • Compared to an average industry Dividend Yield of 2.64, ERCB pays a better dividend. On top of this ERCB pays more dividend than 90.63% of the companies listed in the same industry.
  • ERCB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 3.12%

5.2 History

  • On average, the dividend of ERCB grows each year by 22.02%, which is quite nice.
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

  • 33.58% of the earnings are spent on dividend by ERCB. This is a low number and sustainable payout ratio.
DP33.58%
EPS Next 2Y-10.55%
EPS Next 3Y-9.63%
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 (2/4/2026, 7:00:00 PM)

9.362

-0.05 (-0.53%)

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 Target8.27 (-11.66%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.12%
Yearly Dividend0.26
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)59.63%
Min EPS beat(2)41.65%
Max EPS beat(2)77.6%
EPS beat(4)4
Avg EPS beat(4)47.42%
Min EPS beat(4)20.62%
Max EPS beat(4)77.6%
EPS beat(8)6
Avg EPS beat(8)-28.67%
EPS beat(12)10
Avg EPS beat(12)-7.61%
EPS beat(16)10
Avg EPS beat(16)-9.24%
Revenue beat(2)0
Avg Revenue beat(2)-1.04%
Min Revenue beat(2)-1.21%
Max Revenue beat(2)-0.88%
Revenue beat(4)0
Avg Revenue beat(4)-2.64%
Min Revenue beat(4)-6.39%
Max Revenue beat(4)-0.88%
Revenue beat(8)1
Avg Revenue beat(8)-1.57%
Revenue beat(12)2
Avg Revenue beat(12)-1.69%
Revenue beat(16)6
Avg Revenue beat(16)-0.97%
PT rev (1m)2.8%
PT rev (3m)4.58%
EPS NQ rev (1m)-4.32%
EPS NQ rev (3m)-6.33%
EPS NY rev (1m)1.01%
EPS NY rev (3m)9.49%
Revenue NQ rev (1m)-1.08%
Revenue NQ rev (3m)-1.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.66%
Valuation
Industry RankSector Rank
PE 11.28
Fwd PE 14.76
P/S 1.39
P/FCF 11.31
P/OCF 10.02
P/B 3.01
P/tB 6.21
EV/EBITDA 7.07
EPS(TTM)0.83
EY8.87%
EPS(NY)0.63
Fwd EY6.77%
FCF(TTM)0.83
FCFY8.84%
OCF(TTM)0.93
OCFY9.98%
SpS6.71
BVpS3.11
TBVpS1.51
PEG (NY)N/A
PEG (5Y)1.33
Graham Number7.62
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
WACC7.17%
ROIC/WACC1.23
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)413.4%
EPS 3Y11.79%
EPS 5Y8.51%
EPS Q2Q%15.04%
EPS Next Y-23.51%
EPS Next 2Y-10.55%
EPS Next 3Y-9.63%
EPS Next 5Y-10.81%
Revenue 1Y (TTM)-4.52%
Revenue growth 3Y-4.48%
Revenue growth 5Y0.37%
Sales Q2Q%-8.73%
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 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 11.28 and the Price/Book (PB) ratio is 3.01.


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.