ERICSSON LM-B SHS (1ERICB.MI) Stock Fundamental Analysis
Europe - BIT:1ERICB - SE0000108656 - Common Stock
8.176 EUR
-0.06 (-0.7%)
Taking everything into account, 1ERICB scores 6 out of 10 in our fundamental rating. 1ERICB was compared to 26 industry peers in the Communications Equipment industry. While 1ERICB has a great profitability rating, there are some minor concerns on its financial health. 1ERICB scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally 1ERICB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year 1ERICB was profitable.
1ERICB had a positive operating cash flow in the past year.
1ERICB had positive earnings in 4 of the past 5 years.
Each year in the past 5 years 1ERICB had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.72%, 1ERICB is in the better half of the industry, outperforming 79.31% of the companies in the same industry.
Looking at the Return On Equity, with a value of 24.01%, 1ERICB belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.
1ERICB's Return On Invested Capital of 14.43% is amongst the best of the industry. 1ERICB outperforms 86.21% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1ERICB is below the industry average of 12.13%.
The 3 year average ROIC (10.05%) for 1ERICB is below the current ROIC(14.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.72% | ||
| ROE | 24.01% | ||
| ROIC | 14.43% |
ROA(3y)-1.18%
ROA(5y)2.06%
ROE(3y)-4.3%
ROE(5y)5.63%
ROIC(3y)10.05%
ROIC(5y)11.58%
1.3 Margins
1ERICB has a Profit Margin of 10.26%. This is in the better half of the industry: 1ERICB outperforms 79.31% of its industry peers.
In the last couple of years the Profit Margin of 1ERICB has declined.
The Operating Margin of 1ERICB (12.97%) is better than 75.86% of its industry peers.
1ERICB's Operating Margin has improved in the last couple of years.
The Gross Margin of 1ERICB (47.62%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of 1ERICB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.97% | ||
| PM (TTM) | 10.26% | ||
| GM | 47.62% |
OM growth 3Y-12.66%
OM growth 5Y14.26%
PM growth 3Y-90.62%
PM growth 5Y-61.69%
GM growth 3Y1.11%
GM growth 5Y3.7%
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 about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for 1ERICB has been increased compared to 5 years ago.
1ERICB has a better debt/assets ratio than last year.
2.2 Solvency
1ERICB has a debt to FCF ratio of 1.45. This is a very positive value and a sign of high solvency as it would only need 1.45 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.45, 1ERICB belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
A Debt/Equity ratio of 0.35 indicates that 1ERICB is not too dependend on debt financing.
The Debt to Equity ratio of 1ERICB (0.35) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 1.45 | ||
| Altman-Z | N/A |
ROIC/WACC2.22
WACC6.51%
2.3 Liquidity
A Current Ratio of 1.17 indicates that 1ERICB should not have too much problems paying its short term obligations.
1ERICB has a Current ratio of 1.17. This is in the lower half of the industry: 1ERICB underperforms 75.86% of its industry peers.
1ERICB has a Quick Ratio of 1.17. This is a bad value and indicates that 1ERICB is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of 1ERICB (0.94) is worse than 65.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 395.75% over the past year.
The earnings per share for 1ERICB have been decreasing by -17.01% on average. This is quite bad
Looking at the last year, 1ERICB shows a decrease in Revenue. The Revenue has decreased by -2.65% in the last year.
Measured over the past years, 1ERICB shows a small growth in Revenue. The Revenue has been growing by 1.76% on average per year.
EPS 1Y (TTM)395.75%
EPS 3Y-38.27%
EPS 5Y-17.01%
EPS Q2Q%-5.34%
Revenue 1Y (TTM)-2.65%
Revenue growth 3Y2.19%
Revenue growth 5Y1.76%
Sales Q2Q%-10.28%
3.2 Future
The Earnings Per Share is expected to grow by 29.10% on average over the next years. This is a very strong growth
Based on estimates for the next years, 1ERICB will show a decrease in Revenue. The Revenue will decrease by -0.77% on average per year.
EPS Next Y271.88%
EPS Next 2Y89.39%
EPS Next 3Y55.91%
EPS Next 5Y29.1%
Revenue Next Year-3.55%
Revenue Next 2Y-1.45%
Revenue Next 3Y-0.62%
Revenue Next 5Y-0.77%
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 accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
1ERICB is valuated correctly with a Price/Earnings ratio of 13.63.
93.10% of the companies in the same industry are more expensive than 1ERICB, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.76, 1ERICB is valued a bit cheaper.
With a Price/Forward Earnings ratio of 14.55, 1ERICB is valued correctly.
Based on the Price/Forward Earnings ratio, 1ERICB is valued a bit cheaper than the industry average as 79.31% of the companies are valued more expensively.
1ERICB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.63 | ||
| Fwd PE | 14.55 |
4.2 Price Multiples
82.76% of the companies in the same industry are more expensive than 1ERICB, based on the Enterprise Value to EBITDA ratio.
72.41% of the companies in the same industry are more expensive than 1ERICB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.77 | ||
| EV/EBITDA | 6.9 |
4.3 Compensation for Growth
1ERICB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
1ERICB has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as 1ERICB's earnings are expected to grow with 55.91% in the coming years.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y89.39%
EPS Next 3Y55.91%
5. Dividend
5.1 Amount
1ERICB has a Yearly Dividend Yield of 3.18%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.68, 1ERICB pays a better dividend. On top of this 1ERICB pays more dividend than 89.66% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, 1ERICB pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
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
37.84% of the earnings are spent on dividend by 1ERICB. This is a low number and sustainable payout ratio.
1ERICB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.84%
EPS Next 2Y89.39%
EPS Next 3Y55.91%
BIT:1ERICB (10/16/2025, 7:00:00 PM)
8.176
-0.06 (-0.7%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners54.97%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap27.25B
Revenue(TTM)240.31B
Net Income(TTM)24.64B
Analysts56.43
Price Target7.12 (-12.92%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
Yearly Dividend0.25
Dividend Growth(5Y)22.02%
DP37.84%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.35%
Min EPS beat(2)-21.32%
Max EPS beat(2)20.62%
EPS beat(4)2
Avg EPS beat(4)9.6%
Min EPS beat(4)-21.32%
Max EPS beat(4)49.81%
EPS beat(8)5
Avg EPS beat(8)-42.25%
EPS beat(12)8
Avg EPS beat(12)-19.96%
EPS beat(16)9
Avg EPS beat(16)-14.95%
Revenue beat(2)0
Avg Revenue beat(2)-4.34%
Min Revenue beat(2)-6.39%
Max Revenue beat(2)-2.29%
Revenue beat(4)0
Avg Revenue beat(4)-2.81%
Min Revenue beat(4)-6.39%
Max Revenue beat(4)-0.45%
Revenue beat(8)1
Avg Revenue beat(8)-2.49%
Revenue beat(12)3
Avg Revenue beat(12)-1.62%
Revenue beat(16)7
Avg Revenue beat(16)-0.77%
PT rev (1m)-7.79%
PT rev (3m)-7.79%
EPS NQ rev (1m)-32.07%
EPS NQ rev (3m)-32.07%
EPS NY rev (1m)1.18%
EPS NY rev (3m)1.18%
Revenue NQ rev (1m)-11.66%
Revenue NQ rev (3m)-11.66%
Revenue NY rev (1m)-3.89%
Revenue NY rev (3m)-3.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.63 | ||
| Fwd PE | 14.55 | ||
| P/S | 1.24 | ||
| P/FCF | 9.77 | ||
| P/OCF | 8.75 | ||
| P/B | 2.89 | ||
| P/tB | 6.63 | ||
| EV/EBITDA | 6.9 |
EPS(TTM)0.6
EY7.34%
EPS(NY)0.56
Fwd EY6.87%
FCF(TTM)0.84
FCFY10.23%
OCF(TTM)0.93
OCFY11.43%
SpS6.61
BVpS2.82
TBVpS1.23
PEG (NY)0.05
PEG (5Y)N/A
Graham Number6.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.72% | ||
| ROE | 24.01% | ||
| ROCE | 19.24% | ||
| ROIC | 14.43% | ||
| ROICexc | 21.07% | ||
| ROICexgc | 44.01% | ||
| OM | 12.97% | ||
| PM (TTM) | 10.26% | ||
| GM | 47.62% | ||
| FCFM | 12.65% |
ROA(3y)-1.18%
ROA(5y)2.06%
ROE(3y)-4.3%
ROE(5y)5.63%
ROIC(3y)10.05%
ROIC(5y)11.58%
ROICexc(3y)14.08%
ROICexc(5y)16.96%
ROICexgc(3y)44.7%
ROICexgc(5y)41.2%
ROCE(3y)13.4%
ROCE(5y)15.43%
ROICexgc growth 3Y9.12%
ROICexgc growth 5Y32.67%
ROICexc growth 3Y-8.84%
ROICexc growth 5Y16.91%
OM growth 3Y-12.66%
OM growth 5Y14.26%
PM growth 3Y-90.62%
PM growth 5Y-61.69%
GM growth 3Y1.11%
GM growth 5Y3.7%
F-Score6
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 1.45 | ||
| Debt/EBITDA | 0.87 | ||
| Cap/Depr | 36.83% | ||
| Cap/Sales | 1.48% | ||
| Interest Coverage | 13.31 | ||
| Cash Conversion | 83.18% | ||
| Profit Quality | 123.37% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | N/A |
F-Score6
WACC6.51%
ROIC/WACC2.22
Cap/Depr(3y)47.04%
Cap/Depr(5y)51.35%
Cap/Sales(3y)1.94%
Cap/Sales(5y)2.02%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)395.75%
EPS 3Y-38.27%
EPS 5Y-17.01%
EPS Q2Q%-5.34%
EPS Next Y271.88%
EPS Next 2Y89.39%
EPS Next 3Y55.91%
EPS Next 5Y29.1%
Revenue 1Y (TTM)-2.65%
Revenue growth 3Y2.19%
Revenue growth 5Y1.76%
Sales Q2Q%-10.28%
Revenue Next Year-3.55%
Revenue Next 2Y-1.45%
Revenue Next 3Y-0.62%
Revenue Next 5Y-0.77%
EBIT growth 1Y54.66%
EBIT growth 3Y-10.75%
EBIT growth 5Y16.26%
EBIT Next Year81.48%
EBIT Next 3Y20.93%
EBIT Next 5Y13.49%
FCF growth 1Y392.6%
FCF growth 3Y7.36%
FCF growth 5Y33.08%
OCF growth 1Y169.74%
OCF growth 3Y5.8%
OCF growth 5Y22.35%
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 5 / 10 to 1ERICB.MI.
What is the valuation status for 1ERICB stock?
ChartMill assigns a valuation rating of 7 / 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 6 / 10.
What is the valuation of ERICSSON LM-B SHS based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ERICSSON LM-B SHS (1ERICB.MI) is 13.63 and the Price/Book (PB) ratio is 2.89.
Can you provide the financial health for 1ERICB stock?
The financial health rating of ERICSSON LM-B SHS (1ERICB.MI) is 4 / 10.