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

FRA:ERCG • SE0000108649

9.56 EUR
-0.17 (-1.75%)
Last: Feb 11, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership
Fundamental Rating

5

ERCG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 30 industry peers in the Communications Equipment industry. While ERCG has a great profitability rating, there are some minor concerns on its financial health. ERCG has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally ERCG also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

7

1. Profitability

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.
  • In the past 5 years ERCG always reported a positive cash flow from operatings.
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 80.00% of its industry peers.
  • The Return On Equity of ERCG (25.95%) is better than 90.00% of its industry peers.
  • The Return On Invested Capital of ERCG (8.85%) is better than 70.00% of its industry peers.
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 belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
  • In the last couple of years the Profit Margin of ERCG has grown nicely.
  • ERCG has a Operating Margin of 14.08%. This is in the better half of the industry: ERCG outperforms 80.00% of its industry peers.
  • In the last couple of years the Operating Margin of ERCG has grown nicely.
  • With a Gross Margin value of 48.14%, ERCG perfoms like the industry average, outperforming 56.67% of the companies in the same industry.
  • ERCG'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 3Y7.92%
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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ERCG is still creating some value.
  • ERCG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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.
  • ERCG has a Debt to FCF ratio of 1.38. This is in the better half of the industry: ERCG outperforms 76.67% 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/WACC1.3
WACC6.82%
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.
  • The Current ratio of ERCG (1.29) is worse than 73.33% 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 66.67% 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

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. Growth

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.
  • Looking at the last year, ERCG shows a decrease in Revenue. The Revenue has decreased by -4.52% in the last 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 very negative growth in Earnings Per Share. The EPS will decrease by -11.72% on average per year.
  • The Revenue is expected to decrease by -0.79% on average over the next years.
EPS Next Y-27.33%
EPS Next 2Y-12.81%
EPS Next 3Y-11.16%
EPS Next 5Y-11.72%
Revenue Next Year-0.39%
Revenue Next 2Y0.82%
Revenue Next 3Y0.13%
Revenue Next 5Y-0.79%

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.
  • 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

More info and screens

Find the best growth stocksShow best growing peers

6

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 10.99, the valuation of ERCG can be described as reasonable.
  • Based on the Price/Earnings ratio, ERCG is valued cheaper than 93.33% of the companies in the same industry.
  • ERCG is valuated cheaply when we compare the Price/Earnings ratio to 28.18, which is the current average of the S&P500 Index.
  • ERCG is valuated correctly with a Price/Forward Earnings ratio of 15.06.
  • Based on the Price/Forward Earnings ratio, ERCG is valued cheaper than 86.67% of the companies in the same industry.
  • ERCG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 28.01, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 10.99
Fwd PE 15.06
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

  • 86.67% 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 76.67% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 11.53
EV/EBITDA 7.23
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)1.14
EPS Next 2Y-12.81%
EPS Next 3Y-11.16%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. Dividend

5.1 Amount

  • ERCG has a Yearly Dividend Yield of 3.02%.
  • ERCG's Dividend Yield is rather good when compared to the industry average which is at 2.53. ERCG pays more dividend than 90.00% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.80, ERCG pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.02%

5.2 History

  • On average, the dividend of ERCG grows each year by 22.02%, which is quite nice.
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-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

More info and screens

Find the best dividend stocksShow peers with best dividend

ERICSSON LM-A SHS

FRA:ERCG (2/11/2026, 7:00:00 PM)

9.56

-0.17 (-1.75%)

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 Cap31.87B
Revenue(TTM)236.68B
Net Income(TTM)28.43B
Analysts56.43
Price Target8.7 (-9%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.02%
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)7.24%
PT rev (3m)9.25%
EPS NQ rev (1m)5.08%
EPS NQ rev (3m)2.87%
EPS NY rev (1m)1.01%
EPS NY rev (3m)1.58%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)-0.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.38%
Valuation
Industry RankSector Rank
PE 10.99
Fwd PE 15.06
P/S 1.42
P/FCF 11.53
P/OCF 10.22
P/B 3.07
P/tB 6.33
EV/EBITDA 7.23
EPS(TTM)0.87
EY9.1%
EPS(NY)0.63
Fwd EY6.64%
FCF(TTM)0.83
FCFY8.67%
OCF(TTM)0.94
OCFY9.79%
SpS6.72
BVpS3.11
TBVpS1.51
PEG (NY)N/A
PEG (5Y)1.14
Graham Number7.8
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
WACC6.82%
ROIC/WACC1.3
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-11.72%
Revenue 1Y (TTM)-4.52%
Revenue growth 3Y-4.48%
Revenue growth 5Y0.37%
Sales Q2Q%-4.98%
Revenue Next Year-0.39%
Revenue Next 2Y0.82%
Revenue Next 3Y0.13%
Revenue Next 5Y-0.79%
EBIT growth 1Y45.04%
EBIT growth 3Y3.08%
EBIT growth 5Y2.47%
EBIT Next Year7.3%
EBIT Next 3Y6.82%
EBIT Next 5Y-0.23%
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 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 10.99 and the Price/Book (PB) ratio is 3.07.


How financially healthy is ERICSSON LM-A SHS?

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