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

FRA:ERCB • SE0000108656

Current stock price

10.19 EUR
+0.01 (+0.1%)
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.
  • In the past year ERCB had a positive cash flow from operations.
  • Of the past 5 years ERCB 4 years were profitable.
  • 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

  • ERCB has a Return On Assets of 10.18%. This is amongst the best in the industry. ERCB outperforms 83.87% of its industry peers.
  • Looking at the Return On Equity, with a value of 25.95%, ERCB belongs to the top of the industry, outperforming 87.10% of the companies in the same industry.
  • With a decent Return On Invested Capital value of 8.85%, ERCB is doing good in the industry, outperforming 70.97% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for ERCB is below the industry average of 10.67%.
  • The 3 year average ROIC (6.69%) for ERCB is below the current ROIC(8.85%), indicating increased profibility in the last year.
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 80.65% of its industry peers.
  • In the last couple of years the Profit Margin of ERCB has grown nicely.
  • Looking at the Operating Margin, with a value of 14.08%, ERCB is in the better half of the industry, outperforming 77.42% of the companies in the same industry.
  • ERCB's Operating Margin has improved in the last couple of years.
  • ERCB has a Gross Margin of 48.14%. This is comparable to the rest of the industry: ERCB outperforms 58.06% of its industry peers.
  • 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 3Y7.54%
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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4

2. ERCB.DE Health Analysis

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.
  • Compared to 1 year ago, ERCB has about the same amount of shares outstanding.
  • Compared to 5 years ago, ERCB has about the same amount of shares outstanding.
  • The debt/assets ratio for ERCB has been reduced compared to a year ago.
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

  • 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 77.42% 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.
  • Looking at the Debt to Equity ratio, with a value of 0.32, ERCB is in line with its industry, outperforming 45.16% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.38
Altman-Z N/A
ROIC/WACC1.6
WACC5.53%
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.
  • The Current ratio of ERCB (1.29) is worse than 64.52% of its industry peers.
  • A Quick Ratio of 1.08 indicates that ERCB should not have too much problems paying its short term obligations.
  • The Quick ratio of ERCB (1.08) is worse than 64.52% 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.
  • ERCB shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.62% yearly.
  • 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)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

  • ERCB is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -8.08% yearly.
  • ERCB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.59% yearly.
EPS Next Y-24.42%
EPS Next 2Y-10.57%
EPS Next 3Y-4.53%
EPS Next 5Y-8.08%
Revenue Next Year-1.63%
Revenue Next 2Y0.03%
Revenue Next 3Y0.89%
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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6

4. ERCB.DE Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 11.99, the valuation of ERCB can be described as reasonable.
  • Compared to the rest of the industry, the Price/Earnings ratio of ERCB indicates a rather cheap valuation: ERCB is cheaper than 90.32% of the companies listed in the same industry.
  • ERCB is valuated cheaply when we compare the Price/Earnings ratio to 26.78, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 15.89, the valuation of ERCB can be described as correct.
  • 83.87% of the companies in the same industry are more expensive than ERCB, based on the Price/Forward Earnings ratio.
  • ERCB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.54.
Industry RankSector Rank
PE 11.99
Fwd PE 15.89
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ERCB indicates a rather cheap valuation: ERCB is cheaper than 80.65% of the companies listed in the same industry.
  • 77.42% of the companies in the same industry are more expensive than ERCB, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 12.8
EV/EBITDA 8.15
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)1.25
EPS Next 2Y-10.57%
EPS Next 3Y-4.53%

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6

5. ERCB.DE Dividend Analysis

5.1 Amount

  • ERCB has a Yearly Dividend Yield of 2.70%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.50, ERCB pays a better dividend. On top of this ERCB pays more dividend than 90.32% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, ERCB pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.7%

5.2 History

  • The dividend of ERCB is nicely growing with an annual growth rate of 13.68%!
Dividend Growth(5Y)13.68%
Div Incr Years2
Div Non Decr Years7
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 (4/10/2026, 7:00:00 PM)

10.19

+0.01 (+0.1%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)01-23
Earnings (Next)04-17
Inst Owners58.35%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap34.35B
Revenue(TTM)236.68B
Net Income(TTM)28.43B
Analysts56.55
Price Target8.94 (-12.27%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.7%
Yearly Dividend0.26
Dividend Growth(5Y)13.68%
DP33.41%
Div Incr Years2
Div Non Decr Years7
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%
PT rev (3m)8.1%
EPS NQ rev (1m)0.88%
EPS NQ rev (3m)5.69%
EPS NY rev (1m)0%
EPS NY rev (3m)5.05%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-1.25%
Valuation
Industry RankSector Rank
PE 11.99
Fwd PE 15.89
P/S 1.58
P/FCF 12.8
P/OCF 11.34
P/B 3.41
P/tB 7.03
EV/EBITDA 8.15
EPS(TTM)0.85
EY8.34%
EPS(NY)0.64
Fwd EY6.29%
FCF(TTM)0.8
FCFY7.81%
OCF(TTM)0.9
OCFY8.82%
SpS6.45
BVpS2.99
TBVpS1.45
PEG (NY)N/A
PEG (5Y)1.25
Graham Number7.56
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
WACC5.53%
ROIC/WACC1.6
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-1.63%
Revenue Next 2Y0.03%
Revenue Next 3Y0.89%
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.


Can you provide the valuation status for ERICSSON LM-B SHS?

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


Can you provide the profitability details for ERICSSON LM-B SHS?

ERICSSON LM-B SHS (ERCB.DE) has a profitability rating of 8 / 10.


What is the expected EPS growth for ERICSSON LM-B SHS (ERCB.DE) stock?

The Earnings per Share (EPS) of ERICSSON LM-B SHS (ERCB.DE) is expected to decline by -24.42% in the next year.


How sustainable is the dividend of ERICSSON LM-B SHS (ERCB.DE) stock?

The dividend rating of ERICSSON LM-B SHS (ERCB.DE) is 6 / 10 and the dividend payout ratio is 33.41%.