ERICSSON LM-A SHS (ERCG.DE) Fundamental Analysis & Valuation
FRA:ERCG • SE0000108649
Current stock price
10.1 EUR
+0.16 (+1.61%)
Last:
This ERCG.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. ERCG.DE Profitability Analysis
1.1 Basic Checks
- In the past year ERCG was profitable.
- In the past year ERCG had a positive cash flow from operations.
- ERCG had positive earnings in 4 of the past 5 years.
- In the past 5 years ERCG always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of ERCG (10.18%) is better than 87.10% of its industry peers.
- Looking at the Return On Equity, with a value of 25.95%, ERCG belongs to the top of the industry, outperforming 90.32% of the companies in the same industry.
- With a decent Return On Invested Capital value of 8.85%, ERCG is doing good in the industry, outperforming 74.19% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ERCG is below the industry average of 10.67%.
- The last Return On Invested Capital (8.85%) for ERCG is above the 3 year average (6.69%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
- The Profit Margin of ERCG (12.01%) is better than 83.87% of its industry peers.
- In the last couple of years the Profit Margin of ERCG has grown nicely.
- The Operating Margin of ERCG (14.08%) is better than 80.65% of its industry peers.
- ERCG's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 48.14%, ERCG is doing good in the industry, outperforming 61.29% of the companies in the same industry.
- In the last couple of years the Gross Margin of ERCG has grown nicely.
| Industry Rank | Sector 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%
2. ERCG.DE Health Analysis
2.1 Basic Checks
- ERCG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for ERCG remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, ERCG has about the same amount of shares outstanding.
- The debt/assets ratio for ERCG has been reduced compared to a year ago.
2.2 Solvency
- The Debt to FCF ratio of ERCG is 1.38, which is an excellent value as it means it would take ERCG, only 1.38 years of fcf income to pay off all of its debts.
- ERCG's Debt to FCF ratio of 1.38 is amongst the best of the industry. ERCG outperforms 80.65% of its industry peers.
- ERCG has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
- With a Debt to Equity ratio value of 0.32, ERCG perfoms like the industry average, outperforming 48.39% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.38 | ||
| Altman-Z | N/A |
ROIC/WACC1.61
WACC5.51%
2.3 Liquidity
- ERCG has a Current Ratio of 1.29. This is a normal value and indicates that ERCG is financially healthy and should not expect problems in meeting its short term obligations.
- ERCG's Current ratio of 1.29 is on the low side compared to the rest of the industry. ERCG is outperformed by 61.29% of its industry peers.
- A Quick Ratio of 1.08 indicates that ERCG should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.08, ERCG is not doing good in the industry: 61.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.08 |
3. ERCG.DE Growth Analysis
3.1 Past
- ERCG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 440.40%, which is quite impressive.
- Measured over the past years, ERCG 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.
- Measured over the past years, ERCG 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
- Based on estimates for the next years, ERCG will show a decrease in Earnings Per Share. The EPS will decrease by -8.08% on average per year.
- ERCG 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.
- 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. ERCG.DE Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 11.74 indicates a reasonable valuation of ERCG.
- Based on the Price/Earnings ratio, ERCG is valued cheaper than 93.55% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 26.91. ERCG is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 15.61, which indicates a correct valuation of ERCG.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ERCG indicates a rather cheap valuation: ERCG is cheaper than 87.10% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of ERCG to the average of the S&P500 Index (23.68), we can say ERCG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.74 | ||
| Fwd PE | 15.61 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ERCG is valued cheaply inside the industry as 83.87% of the companies are valued more expensively.
- ERCG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ERCG is cheaper than 80.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.58 | ||
| EV/EBITDA | 8.01 |
4.3 Compensation for Growth
- The excellent profitability rating of ERCG may justify a higher PE ratio.
- A cheap valuation may be justified as ERCG's earnings are expected to decrease with -4.53% in the coming years.
PEG (NY)N/A
PEG (5Y)1.22
EPS Next 2Y-10.57%
EPS Next 3Y-4.53%
5. ERCG.DE Dividend Analysis
5.1 Amount
- ERCG has a Yearly Dividend Yield of 2.83%.
- Compared to an average industry Dividend Yield of 2.50, ERCG pays a better dividend. On top of this ERCG pays more dividend than 93.55% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.89, ERCG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
5.2 History
- The dividend of ERCG is nicely growing with an annual growth rate of 13.68%!
Dividend Growth(5Y)13.68%
Div Incr Years2
Div Non Decr Years7
5.3 Sustainability
- ERCG pays out 33.41% of its income as dividend. This is a sustainable payout ratio.
DP33.41%
EPS Next 2Y-10.57%
EPS Next 3Y-4.53%
ERCG.DE Fundamentals: All Metrics, Ratios and Statistics
FRA:ERCG (4/8/2026, 7:00:00 PM)
10.1
+0.16 (+1.61%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)01-23 2026-01-23/bmo
Earnings (Next)04-17 2026-04-17
Inst Owners57.49%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap34.05B
Revenue(TTM)236.68B
Net Income(TTM)28.43B
Analysts56.55
Price Target8.77 (-13.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
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)8.07%
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.74 | ||
| Fwd PE | 15.61 | ||
| P/S | 1.55 | ||
| P/FCF | 12.58 | ||
| P/OCF | 11.14 | ||
| P/B | 3.35 | ||
| P/tB | 6.91 | ||
| EV/EBITDA | 8.01 |
EPS(TTM)0.86
EY8.51%
EPS(NY)0.65
Fwd EY6.4%
FCF(TTM)0.8
FCFY7.95%
OCF(TTM)0.91
OCFY8.97%
SpS6.51
BVpS3.01
TBVpS1.46
PEG (NY)N/A
PEG (5Y)1.22
Graham Number7.64
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC5.51%
ROIC/WACC1.61
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-A SHS / ERCG.DE Fundamental Analysis FAQ
Can you provide the ChartMill fundamental rating for ERICSSON LM-A SHS?
ChartMill assigns a fundamental rating of 6 / 10 to ERCG.DE.
What is the valuation status of ERICSSON LM-A SHS (ERCG.DE) stock?
ChartMill assigns a valuation rating of 7 / 10 to ERICSSON LM-A SHS (ERCG.DE). This can be considered as Undervalued.
How profitable is ERICSSON LM-A SHS (ERCG.DE) stock?
ERICSSON LM-A SHS (ERCG.DE) has a profitability rating of 8 / 10.
Can you provide the expected EPS growth for ERCG stock?
The Earnings per Share (EPS) of ERICSSON LM-A SHS (ERCG.DE) is expected to decline by -24.42% in the next year.
Can you provide the dividend sustainability for ERCG stock?
The dividend rating of ERICSSON LM-A SHS (ERCG.DE) is 7 / 10 and the dividend payout ratio is 33.41%.