ERICSSON LM-A SHS (ERCG.DE) Fundamental Analysis & Valuation
FRA:ERCG • SE0000108649
Current stock price
10.14 EUR
-0.08 (-0.78%)
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
- ERCG had positive earnings in the past year.
- ERCG had a positive operating cash flow in the past year.
- 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
- Looking at the Return On Assets, with a value of 10.18%, ERCG is in the better half of the industry, outperforming 79.41% of the companies in the same industry.
- ERCG has a Return On Equity of 25.95%. This is amongst the best in the industry. ERCG outperforms 82.35% of its industry peers.
- ERCG's Return On Invested Capital of 8.85% is fine compared to the rest of the industry. ERCG outperforms 67.65% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ERCG is below the industry average of 11.35%.
- 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
- Looking at the Profit Margin, with a value of 12.01%, ERCG is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
- In the last couple of years the Profit Margin of ERCG has grown nicely.
- With a decent Operating Margin value of 14.08%, ERCG is doing good in the industry, outperforming 73.53% 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 55.88% 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ERCG is creating some value.
- Compared to 1 year ago, ERCG has about the same amount of shares outstanding.
- ERCG has about the same amout of shares outstanding than it did 5 years ago.
- The debt/assets ratio for ERCG has been reduced compared to a year ago.
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 73.53% 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.
- ERCG has a Debt to Equity ratio (0.32) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.38 | ||
| Altman-Z | N/A |
ROIC/WACC1.55
WACC5.71%
2.3 Liquidity
- A Current Ratio of 1.29 indicates that ERCG should not have too much problems paying 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 64.71% of its industry peers.
- A Quick Ratio of 1.08 indicates that ERCG should not have too much problems paying its short term obligations.
- The Quick ratio of ERCG (1.08) is worse than 64.71% of its industry peers.
| 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 320.74%, which is quite impressive.
- The Earnings Per Share has been growing by 9.62% on average over the past years. This is quite good.
- ERCG shows a decrease in Revenue. In the last year, the revenue decreased by -4.52%.
- 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)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
- 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-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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. ERCG.DE Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 11.79, the valuation of ERCG can be described as reasonable.
- ERCG's Price/Earnings ratio is rather cheap when compared to the industry. ERCG is cheaper than 94.12% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.50. ERCG is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 14.54, the valuation of ERCG can be described as correct.
- 91.18% of the companies in the same industry are more expensive than ERCG, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 22.62. ERCG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.79 | ||
| Fwd PE | 14.54 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ERCG is valued cheaper than 82.35% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ERCG indicates a somewhat cheap valuation: ERCG is cheaper than 76.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.62 | ||
| EV/EBITDA | 8.04 |
4.3 Compensation for Growth
- The decent profitability rating of ERCG 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)1.23
EPS Next 2Y-9.78%
EPS Next 3Y-4.8%
5. ERCG.DE Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 2.72%, ERCG has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.24, ERCG pays a better dividend. On top of this ERCG pays more dividend than 88.24% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, ERCG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
5.2 History
- On average, the dividend of ERCG grows each year by 13.68%, which is quite nice.
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 (4/22/2026, 7:00:00 PM)
10.14
-0.08 (-0.78%)
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 Cap34.19B
Revenue(TTM)236.68B
Net Income(TTM)28.43B
Analysts56.55
Price Target9.16 (-9.66%)
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 | 11.79 | ||
| Fwd PE | 14.54 | ||
| P/S | 1.56 | ||
| P/FCF | 12.62 | ||
| P/OCF | 11.18 | ||
| P/B | 3.36 | ||
| P/tB | 6.93 | ||
| EV/EBITDA | 8.04 |
EPS(TTM)0.86
EY8.48%
EPS(NY)0.7
Fwd EY6.88%
FCF(TTM)0.8
FCFY7.92%
OCF(TTM)0.91
OCFY8.95%
SpS6.51
BVpS3.02
TBVpS1.46
PEG (NY)N/A
PEG (5Y)1.23
Graham Number7.63812 (-24.67%)
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
WACC5.71%
ROIC/WACC1.55
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 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.
How profitable is ERICSSON LM-A SHS (ERCG.DE) stock?
ERICSSON LM-A SHS (ERCG.DE) has a profitability rating of 7 / 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 7 / 10 and the dividend payout ratio is 33.41%.