ERICSSON LM-B SHS (1ERICB.MI) Stock Fundamental Analysis

BIT:1ERICB • SE0000108656

9.106 EUR
+0.93 (+11.37%)
Last: Jan 29, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership
Fundamental Rating

6

Taking everything into account, 1ERICB scores 6 out of 10 in our fundamental rating. 1ERICB was compared to 30 industry peers in the Communications Equipment industry. 1ERICB has an excellent profitability rating, but there are some minor concerns on its financial health. 1ERICB has a bad growth rate and is valued cheaply. 1ERICB also has an excellent dividend rating. These ratings could make 1ERICB a good candidate for value and dividend investing.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year 1ERICB was profitable.
  • In the past year 1ERICB had a positive cash flow from operations.
  • Of the past 5 years 1ERICB 4 years were profitable.
  • Each year in the past 5 years 1ERICB had a positive operating cash flow.
1ERICB.MI Yearly Net Income VS EBIT VS OCF VS FCF1ERICB.MI 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

  • With an excellent Return On Assets value of 10.18%, 1ERICB belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 25.95%, 1ERICB belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
  • With an excellent Return On Invested Capital value of 14.85%, 1ERICB belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
Industry RankSector Rank
ROA 10.18%
ROE 25.95%
ROIC 14.85%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1ERICB.MI Yearly ROA, ROE, ROIC1ERICB.MI 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

  • 1ERICB has a better Profit Margin (12.01%) than 87.50% of its industry peers.
  • In the last couple of years the Profit Margin of 1ERICB has grown nicely.
  • The Operating Margin of 1ERICB (14.08%) is better than 84.38% of its industry peers.
  • 1ERICB's Operating Margin has improved in the last couple of years.
  • With a decent Gross Margin value of 48.14%, 1ERICB is doing good in the industry, outperforming 62.50% of the companies in the same industry.
  • 1ERICB'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%
1ERICB.MI Yearly Profit, Operating, Gross Margins1ERICB.MI 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

5

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1ERICB is creating value.
  • 1ERICB has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
1ERICB.MI Yearly Shares Outstanding1ERICB.MI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B
1ERICB.MI Yearly Total Debt VS Total Assets1ERICB.MI 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

  • 1ERICB 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.
  • 1ERICB's Debt to FCF ratio of 1.38 is amongst the best of the industry. 1ERICB outperforms 81.25% of its industry peers.
  • A Debt/Equity ratio of 0.32 indicates that 1ERICB is not too dependend on debt financing.
  • 1ERICB has a Debt to Equity ratio (0.32) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.38
Altman-Z N/A
ROIC/WACC1.84
WACC8.06%
1ERICB.MI Yearly LT Debt VS Equity VS FCF1ERICB.MI 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 1ERICB should not have too much problems paying its short term obligations.
  • With a Current ratio value of 1.29, 1ERICB is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
  • 1ERICB has a Quick Ratio of 1.08. This is a normal value and indicates that 1ERICB is financially healthy and should not expect problems in meeting its short term obligations.
  • 1ERICB has a worse Quick ratio (1.08) than 62.50% of its industry peers.
Industry RankSector Rank
Current Ratio 1.29
Quick Ratio 1.08
1ERICB.MI Yearly Current Assets VS Current Liabilites1ERICB.MI 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

  • The Earnings Per Share has grown by an impressive 440.40% over the past year.
  • 1ERICB 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.
  • The Revenue has been growing slightly by 0.37% on average over the past years.
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, 1ERICB will show a very negative growth in Earnings Per Share. The EPS will decrease by -11.72% on average per year.
  • Based on estimates for the next years, 1ERICB will show a decrease in Revenue. The Revenue will decrease by -0.79% on average per year.
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

  • 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.
1ERICB.MI Yearly Revenue VS Estimates1ERICB.MI 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
1ERICB.MI Yearly EPS VS Estimates1ERICB.MI 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

7

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 10.59, the valuation of 1ERICB can be described as very reasonable.
  • Compared to the rest of the industry, the Price/Earnings ratio of 1ERICB indicates a rather cheap valuation: 1ERICB is cheaper than 96.88% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.05. 1ERICB is valued rather cheaply when compared to this.
  • The Price/Forward Earnings ratio is 14.49, which indicates a correct valuation of 1ERICB.
  • 1ERICB's Price/Forward Earnings ratio is rather cheap when compared to the industry. 1ERICB is cheaper than 93.75% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.03, 1ERICB is valued a bit cheaper.
Industry RankSector Rank
PE 10.59
Fwd PE 14.49
1ERICB.MI Price Earnings VS Forward Price Earnings1ERICB.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • 1ERICB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. 1ERICB is cheaper than 90.63% of the companies in the same industry.
  • 81.25% of the companies in the same industry are more expensive than 1ERICB, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 11.1
EV/EBITDA 6.93
1ERICB.MI Per share data1ERICB.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

  • The excellent profitability rating of 1ERICB may justify a higher PE ratio.
  • 1ERICB'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)1.1
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

  • With a Yearly Dividend Yield of 3.02%, 1ERICB has a reasonable but not impressive dividend return.
  • 1ERICB's Dividend Yield is rather good when compared to the industry average which is at 2.64. 1ERICB pays more dividend than 93.75% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.80, 1ERICB pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.02%

5.2 History

  • On average, the dividend of 1ERICB grows each year by 22.02%, which is quite nice.
Dividend Growth(5Y)22.02%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

  • 33.58% of the earnings are spent on dividend by 1ERICB. This is a low number and sustainable payout ratio.
DP33.58%
EPS Next 2Y-12.81%
EPS Next 3Y-11.16%
1ERICB.MI Yearly Income VS Free CF VS Dividend1ERICB.MI 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
1ERICB.MI Dividend Payout.1ERICB.MI Dividend Payout, showing the Payout Ratio.1ERICB.MI Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

ERICSSON LM-B SHS

BIT:1ERICB (1/29/2026, 7:00:00 PM)

9.106

+0.93 (+11.37%)

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 Cap30.35B
Revenue(TTM)236.68B
Net Income(TTM)28.43B
Analysts56.43
Price Target8.71 (-4.35%)
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 Years0
Div Non Decr Years0
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)22.38%
PT rev (3m)22.38%
EPS NQ rev (1m)28.09%
EPS NQ rev (3m)28.09%
EPS NY rev (1m)9.49%
EPS NY rev (3m)9.49%
Revenue NQ rev (1m)-2.93%
Revenue NQ rev (3m)-2.93%
Revenue NY rev (1m)-2.66%
Revenue NY rev (3m)-2.66%
Valuation
Industry RankSector Rank
PE 10.59
Fwd PE 14.49
P/S 1.37
P/FCF 11.1
P/OCF 9.83
P/B 2.96
P/tB 6.09
EV/EBITDA 6.93
EPS(TTM)0.86
EY9.44%
EPS(NY)0.63
Fwd EY6.9%
FCF(TTM)0.82
FCFY9.01%
OCF(TTM)0.93
OCFY10.17%
SpS6.65
BVpS3.08
TBVpS1.49
PEG (NY)N/A
PEG (5Y)1.1
Graham Number7.72
Profitability
Industry RankSector Rank
ROA 10.18%
ROE 25.95%
ROCE 19.8%
ROIC 14.85%
ROICexc 22.38%
ROICexgc 45.21%
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
WACC8.06%
ROIC/WACC1.84
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-B SHS / 1ERICB.MI FAQ

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

ChartMill assigns a fundamental rating of 6 / 10 to 1ERICB.MI.


Can you provide the valuation status for ERICSSON LM-B SHS?

ChartMill assigns a valuation rating of 8 / 10 to ERICSSON LM-B SHS (1ERICB.MI). This can be considered as Undervalued.


How profitable is ERICSSON LM-B SHS (1ERICB.MI) stock?

ERICSSON LM-B SHS (1ERICB.MI) has a profitability rating of 7 / 10.


What are the PE and PB ratios of ERICSSON LM-B SHS (1ERICB.MI) stock?

The Price/Earnings (PE) ratio for ERICSSON LM-B SHS (1ERICB.MI) is 10.59 and the Price/Book (PB) ratio is 2.96.


Is the dividend of ERICSSON LM-B SHS sustainable?

The dividend rating of ERICSSON LM-B SHS (1ERICB.MI) is 8 / 10 and the dividend payout ratio is 33.58%.