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

FRA:ERCG • SE0000108649

Current stock price

10.48 EUR
-0.08 (-0.76%)
Last:

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

7

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.
  • 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 81.25% of its industry peers.
  • ERCG has a better Return On Equity (25.95%) than 81.25% of its industry peers.
  • With a decent Return On Invested Capital value of 8.85%, ERCG is doing good in the industry, outperforming 68.75% 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

  • Looking at the Profit Margin, with a value of 12.01%, ERCG is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
  • ERCG's Profit Margin has improved in the last couple of years.
  • With a decent Operating Margin value of 14.08%, ERCG is doing good in the industry, outperforming 75.00% of the companies in the same industry.
  • ERCG's Operating Margin has improved in the last couple of years.
  • The Gross Margin of ERCG (48.14%) is comparable to the rest of the industry.
  • 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

  • ERCG 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.
  • Looking at the Debt to FCF ratio, with a value of 1.38, ERCG is in the better half of the industry, outperforming 78.13% of the companies in the same industry.
  • ERCG has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
  • 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/WACC1.27
WACC6.97%
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

  • A Current Ratio of 1.29 indicates that ERCG should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.29, ERCG is not doing good in the industry: 65.63% of the companies in the same industry are doing better.
  • 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: 65.63% of the companies in the same industry are doing better.
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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4

3. ERCG.DE Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 440.40% over the past year.
  • ERCG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.62% yearly.
  • 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

  • ERCG is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -8.08% yearly.
  • 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-1.52%
Revenue Next 2Y-0.04%
Revenue Next 3Y0.92%
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.
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

  • With a Price/Earnings ratio of 12.19, ERCG is valued correctly.
  • 90.63% of the companies in the same industry are more expensive than ERCG, based on the Price/Earnings ratio.
  • ERCG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.11.
  • A Price/Forward Earnings ratio of 16.08 indicates a correct valuation of ERCG.
  • Based on the Price/Forward Earnings ratio, ERCG is valued cheaper than 81.25% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 24.12. ERCG is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 12.19
Fwd PE 16.08
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

4.2 Price Multiples

  • 84.38% of the companies in the same industry are more expensive than ERCG, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ERCG indicates a somewhat cheap valuation: ERCG is cheaper than 78.13% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 12.81
EV/EBITDA 8.1
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 -4.53% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.27
EPS Next 2Y-10.57%
EPS Next 3Y-4.53%

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6

5. ERCG.DE Dividend Analysis

5.1 Amount

  • ERCG has a Yearly Dividend Yield of 2.78%. Purely for dividend investing, there may be better candidates out there.
  • ERCG's Dividend Yield is rather good when compared to the industry average which is at 2.44. ERCG pays more dividend than 90.63% of the companies in the same industry.
  • ERCG's Dividend Yield is a higher than the S&P500 average which is at 1.91.
Industry RankSector Rank
Dividend Yield 2.78%

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

  • 33.58% of the earnings are spent on dividend by ERCG. This is a low number and sustainable payout ratio.
DP33.58%
EPS Next 2Y-10.57%
EPS Next 3Y-4.53%
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 (3/17/2026, 7:00:00 PM)

10.48

-0.08 (-0.76%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)01-23
Earnings (Next)04-17
Inst Owners57.49%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap34.93B
Revenue(TTM)236.68B
Net Income(TTM)28.43B
Analysts55.86
Price Target8.77 (-16.32%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.78%
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)0.77%
PT rev (3m)9.73%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.57%
EPS NY rev (1m)4%
EPS NY rev (3m)5.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.6%
Revenue NY rev (1m)-1.14%
Revenue NY rev (3m)-1.19%
Valuation
Industry RankSector Rank
PE 12.19
Fwd PE 16.08
P/S 1.58
P/FCF 12.81
P/OCF 11.35
P/B 3.41
P/tB 7.04
EV/EBITDA 8.1
EPS(TTM)0.86
EY8.21%
EPS(NY)0.65
Fwd EY6.22%
FCF(TTM)0.82
FCFY7.8%
OCF(TTM)0.92
OCFY8.81%
SpS6.63
BVpS3.07
TBVpS1.49
PEG (NY)N/A
PEG (5Y)1.27
Graham Number7.71
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
WACC6.97%
ROIC/WACC1.27
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-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-1.52%
Revenue Next 2Y-0.04%
Revenue Next 3Y0.92%
Revenue Next 5Y0.59%
EBIT growth 1Y45.04%
EBIT growth 3Y3.08%
EBIT growth 5Y2.47%
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 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 7 / 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 12.19 and the Price/Book (PB) ratio is 3.41.


How financially healthy is ERICSSON LM-A SHS?

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