ERICSSON LM-A SHS (ERCG.DE) Fundamental Analysis & Valuation
FRA:ERCG • SE0000108649
Current stock price
9.72 EUR
-0.38 (-3.76%)
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.
- Of the past 5 years ERCG 4 years were profitable.
- Each year in the past 5 years ERCG had a positive operating cash flow.
1.2 Ratios
- ERCG has a better Return On Assets (10.18%) than 85.29% 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 88.24% of the companies in the same industry.
- ERCG's Return On Invested Capital of 8.85% is fine compared to the rest of the industry. ERCG outperforms 70.59% of its industry peers.
- ERCG had an Average Return On Invested Capital over the past 3 years of 6.69%. This is below the industry average of 11.35%.
- The 3 year average ROIC (6.69%) for ERCG is below the current ROIC(8.85%), indicating increased profibility in the last year.
| 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 82.35% of its industry peers.
- ERCG's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 14.08%, ERCG is in the better half of the industry, outperforming 79.41% of the companies in the same industry.
- ERCG's Operating Margin has improved in the last couple of years.
- ERCG has a Gross Margin of 48.14%. This is in the better half of the industry: ERCG outperforms 61.76% of its industry peers.
- 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.
- ERCG has about the same amout of shares outstanding than it did 1 year ago.
- The number of shares outstanding for ERCG remains at a similar level compared to 5 years ago.
- ERCG has a better debt/assets ratio than last year.
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 fine compared to the rest of the industry. ERCG outperforms 76.47% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.38 | ||
| Altman-Z | N/A |
ROIC/WACC1.56
WACC5.67%
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 61.76% 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.
- With a Quick ratio value of 1.08, ERCG is not doing good in the industry: 61.76% 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
- The Earnings Per Share has grown by an impressive 320.74% 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.
- Looking at the last year, ERCG shows a decrease in Revenue. The Revenue has decreased by -4.52% in the last 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)320.74%
EPS 3Y13.71%
EPS 5Y9.62%
EPS Q2Q%4.51%
Revenue 1Y (TTM)-4.52%
Revenue growth 3Y-4.48%
Revenue growth 5Y0.37%
Sales Q2Q%-10.35%
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-23.81%
EPS Next 2Y-9.78%
EPS Next 3Y-4.8%
EPS Next 5Y-8.08%
Revenue Next Year-1.71%
Revenue Next 2Y0.04%
Revenue Next 3Y0.91%
Revenue Next 5Y0.59%
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.
- 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
- With a Price/Earnings ratio of 11.30, the valuation of ERCG can be described as very reasonable.
- Based on the Price/Earnings ratio, ERCG is valued cheaply inside the industry as 97.06% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.89. ERCG is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 13.98, 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 94.12% of the companies listed in the same industry.
- ERCG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 38.50.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.3 | ||
| Fwd PE | 13.98 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ERCG is valued cheaper than 88.24% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, ERCG is valued cheaply inside the industry as 82.35% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.13 | ||
| EV/EBITDA | 7.69 |
4.3 Compensation for Growth
- ERCG has an outstanding profitability rating, which may justify a higher PE ratio.
- ERCG's earnings are expected to decrease with -4.80% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.17
EPS Next 2Y-9.78%
EPS Next 3Y-4.8%
5. ERCG.DE Dividend Analysis
5.1 Amount
- ERCG has a Yearly Dividend Yield of 2.72%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.24, ERCG pays a better dividend. On top of this ERCG pays more dividend than 91.18% of the companies listed in the same industry.
- ERCG's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
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-9.78%
EPS Next 3Y-4.8%
ERCG.DE Fundamentals: All Metrics, Ratios and Statistics
FRA:ERCG (4/17/2026, 7:00:00 PM)
9.72
-0.38 (-3.76%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)04-17 2026-04-17/bmo
Earnings (Next)07-14 2026-07-14
Inst Owners58.35%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap32.77B
Revenue(TTM)236.68B
Net Income(TTM)28.43B
Analysts56.55
Price Target9.16 (-5.76%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
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)4.48%
PT rev (3m)6.89%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)5.21%
EPS NY rev (1m)0.81%
EPS NY rev (3m)5.9%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)0.01%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.3 | ||
| Fwd PE | 13.98 | ||
| P/S | 1.5 | ||
| P/FCF | 12.13 | ||
| P/OCF | 10.74 | ||
| P/B | 3.23 | ||
| P/tB | 6.66 | ||
| EV/EBITDA | 7.69 |
EPS(TTM)0.86
EY8.85%
EPS(NY)0.7
Fwd EY7.16%
FCF(TTM)0.8
FCFY8.24%
OCF(TTM)0.9
OCFY9.31%
SpS6.5
BVpS3.01
TBVpS1.46
PEG (NY)N/A
PEG (5Y)1.17
Graham Number7.62856 (-21.52%)
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
WACC5.67%
ROIC/WACC1.56
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)320.74%
EPS 3Y13.71%
EPS 5Y9.62%
EPS Q2Q%4.51%
EPS Next Y-23.81%
EPS Next 2Y-9.78%
EPS Next 3Y-4.8%
EPS Next 5Y-8.08%
Revenue 1Y (TTM)-4.52%
Revenue growth 3Y-4.48%
Revenue growth 5Y0.37%
Sales Q2Q%-10.35%
Revenue Next Year-1.71%
Revenue Next 2Y0.04%
Revenue Next 3Y0.91%
Revenue Next 5Y0.59%
EBIT growth 1Y45.04%
EBIT growth 3Y2.72%
EBIT growth 5Y2.26%
EBIT Next Year7.58%
EBIT Next 3Y5.03%
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 -23.81% in the next year.
Can you provide the dividend sustainability for ERCG stock?
The dividend rating of ERICSSON LM-A SHS (ERCG.DE) is 6 / 10 and the dividend payout ratio is 33.41%.