ERICSSON LM-A SHS (ERCG.DE) Fundamental Analysis & Valuation

FRA:ERCG • SE0000108649

9.68 EUR
-0.05 (-0.51%)
Last: Mar 3, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership

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

Fundamental Rating

5

Overall ERCG gets a fundamental rating of 5 out of 10. We evaluated ERCG against 28 industry peers in the Communications Equipment industry. ERCG scores excellent on profitability, but there are some minor concerns on its financial health. ERCG is valued correctly, but it does not seem to be growing. Finally ERCG also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

7

1. ERCG.DE Profitability Analysis

1.1 Basic Checks

  • ERCG had positive earnings in the past year.
  • In the past year ERCG had a positive cash flow from operations.
  • Of the past 5 years ERCG 4 years were profitable.
  • Each year in the past 5 years ERCG had a positive operating cash flow.
ERCG.DE Yearly Net Income VS EBIT VS OCF VS FCFERCG.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 ERCG (10.18%) is better than 82.14% 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 85.71% 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 71.43% of the companies in the same industry.
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
ERCG.DE Yearly ROA, ROE, ROICERCG.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

  • ERCG has a Profit Margin of 12.01%. This is amongst the best in the industry. ERCG outperforms 85.71% of its industry peers.
  • In the last couple of years the Profit Margin of ERCG has grown nicely.
  • With an excellent Operating Margin value of 14.08%, ERCG belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
  • In the last couple of years the Operating Margin of ERCG has grown nicely.
  • ERCG has a Gross Margin of 48.14%. This is comparable to the rest of the industry: ERCG outperforms 57.14% of its industry peers.
  • In the last couple of years the Gross Margin of ERCG has grown nicely.
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%
ERCG.DE Yearly Profit, Operating, Gross MarginsERCG.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. 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.
  • There is no outstanding debt for ERCG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
ERCG.DE Yearly Shares OutstandingERCG.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B
ERCG.DE Yearly Total Debt VS Total AssetsERCG.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 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.
  • The Debt to FCF ratio of ERCG (1.38) is better than 78.57% of its industry peers.
  • A Debt/Equity ratio of 0.32 indicates that ERCG is not too dependend on debt financing.
  • ERCG 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/WACC1.41
WACC6.28%
ERCG.DE Yearly LT Debt VS Equity VS FCFERCG.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

  • 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 has a Current ratio of 1.29. This is in the lower half of the industry: ERCG underperforms 64.29% of its industry peers.
  • ERCG has a Quick Ratio of 1.08. 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 Quick ratio of 1.08 is on the low side compared to the rest of the industry. ERCG is outperformed by 64.29% of its industry peers.
Industry RankSector Rank
Current Ratio 1.29
Quick Ratio 1.08
ERCG.DE Yearly Current Assets VS Current LiabilitesERCG.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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3

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.
  • ERCG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.37% yearly.
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

  • ERCG is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -8.53% yearly.
  • ERCG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.10% yearly.
EPS Next Y-27.33%
EPS Next 2Y-12.81%
EPS Next 3Y-11.16%
EPS Next 5Y-8.53%
Revenue Next Year-1.52%
Revenue Next 2Y-0.04%
Revenue Next 3Y0.92%
Revenue Next 5Y0.1%

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 decreasing: in the next years the growth will be less than in the last years.
ERCG.DE Yearly Revenue VS EstimatesERCG.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
ERCG.DE Yearly EPS VS EstimatesERCG.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. ERCG.DE Valuation Analysis

4.1 Price/Earnings Ratio

  • ERCG is valuated reasonably with a Price/Earnings ratio of 11.26.
  • 92.86% of the companies in the same industry are more expensive than ERCG, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of ERCG to the average of the S&P500 Index (26.83), we can say ERCG is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 15.48, ERCG is valued correctly.
  • Based on the Price/Forward Earnings ratio, ERCG is valued cheaper than 82.14% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.95, ERCG is valued a bit cheaper.
Industry RankSector Rank
PE 11.26
Fwd PE 15.48
ERCG.DE Price Earnings VS Forward Price EarningsERCG.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • 82.14% of the companies in the same industry are more expensive than ERCG, based on the Enterprise Value to EBITDA ratio.
  • ERCG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ERCG is cheaper than 75.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 11.86
EV/EBITDA 7.45
ERCG.DE Per share dataERCG.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

  • ERCG has a very decent profitability rating, which may justify a higher PE ratio.
  • ERCG'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)1.17
EPS Next 2Y-12.81%
EPS Next 3Y-11.16%

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7

5. ERCG.DE Dividend Analysis

5.1 Amount

  • ERCG has a Yearly Dividend Yield of 2.95%.
  • ERCG's Dividend Yield is rather good when compared to the industry average which is at 2.74. ERCG pays more dividend than 89.29% of the companies in the same industry.
  • ERCG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.95%

5.2 History

  • The dividend of ERCG is nicely growing with an annual growth rate of 22.02%!
Dividend Growth(5Y)22.02%
Div Incr Years1
Div Non Decr Years6
ERCG.DE Yearly Dividends per shareERCG.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

  • ERCG 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%
ERCG.DE Yearly Income VS Free CF VS DividendERCG.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
ERCG.DE Dividend Payout.ERCG.DE Dividend Payout, showing the Payout Ratio.ERCG.DE Dividend Payout.PayoutRetained Earnings

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ERCG.DE Fundamentals: All Metrics, Ratios and Statistics

ERICSSON LM-A SHS

FRA:ERCG (3/3/2026, 7:00:00 PM)

9.68

-0.05 (-0.51%)

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 Cap32.27B
Revenue(TTM)236.68B
Net Income(TTM)28.43B
Analysts56.55
Price Target8.77 (-9.4%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.95%
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)2.3%
PT rev (3m)10.18%
EPS NQ rev (1m)9.5%
EPS NQ rev (3m)2.57%
EPS NY rev (1m)0%
EPS NY rev (3m)1.58%
Revenue NQ rev (1m)1.23%
Revenue NQ rev (3m)-0.6%
Revenue NY rev (1m)-1.14%
Revenue NY rev (3m)-1.52%
Valuation
Industry RankSector Rank
PE 11.26
Fwd PE 15.48
P/S 1.46
P/FCF 11.86
P/OCF 10.5
P/B 3.16
P/tB 6.51
EV/EBITDA 7.45
EPS(TTM)0.86
EY8.88%
EPS(NY)0.63
Fwd EY6.46%
FCF(TTM)0.82
FCFY8.43%
OCF(TTM)0.92
OCFY9.52%
SpS6.62
BVpS3.06
TBVpS1.49
PEG (NY)N/A
PEG (5Y)1.17
Graham Number7.7
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
WACC6.28%
ROIC/WACC1.41
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-8.53%
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 5Y0.1%
EBIT growth 1Y45.04%
EBIT growth 3Y3.08%
EBIT growth 5Y2.47%
EBIT Next Year7.68%
EBIT Next 3Y4.9%
EBIT Next 5Y2.17%
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 FAQ

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

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


What is the valuation status of ERICSSON LM-A SHS (ERCG.DE) stock?

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


What is the profitability of ERCG stock?

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


What are the PE and PB ratios of ERICSSON LM-A SHS (ERCG.DE) stock?

The Price/Earnings (PE) ratio for ERICSSON LM-A SHS (ERCG.DE) is 11.26 and the Price/Book (PB) ratio is 3.16.


How financially healthy is ERICSSON LM-A SHS?

The financial health rating of ERICSSON LM-A SHS (ERCG.DE) is 4 / 10.