ERICSSON LM-B SHS (1ERICB.MI) Stock Fundamental Analysis
Europe - BIT:1ERICB - SE0000108656 - Common Stock
8.176 EUR
-0.06 (-0.7%)
1ERICB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 29 industry peers in the Communications Equipment industry. 1ERICB has only an average score on both its financial health and profitability. 1ERICB has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
1ERICB had positive earnings in the past year.
In the past year 1ERICB had a positive cash flow from operations.
Of the past 5 years 1ERICB 4 years were profitable.
In the past 5 years 1ERICB always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.58%, 1ERICB is in line with its industry, outperforming 51.72% of the companies in the same industry.
1ERICB has a Return On Equity of 1.87%. This is comparable to the rest of the industry: 1ERICB outperforms 51.72% of its industry peers.
The Return On Invested Capital of 1ERICB (13.71%) is better than 79.31% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1ERICB is below the industry average of 12.11%.
The last Return On Invested Capital (13.71%) for 1ERICB is above the 3 year average (10.05%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 1.87% | ||
| ROIC | 13.71% |
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 0.65%. This is comparable to the rest of the industry: 1ERICB outperforms 51.72% of its industry peers.
In the last couple of years the Profit Margin of 1ERICB has declined.
The Operating Margin of 1ERICB (10.72%) is better than 72.41% of its industry peers.
In the last couple of years the Operating Margin of 1ERICB has grown nicely.
1ERICB has a Gross Margin (46.21%) which is in line with its industry peers.
1ERICB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.72% | ||
| PM (TTM) | 0.65% | ||
| GM | 46.21% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
Compared to 1 year ago, 1ERICB has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of 1ERICB is 1.02, which is an excellent value as it means it would take 1ERICB, only 1.02 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.02, 1ERICB belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
1ERICB has a Debt/Equity ratio of 0.41. This is a healthy value indicating a solid balance between debt and equity.
1ERICB has a Debt to Equity ratio of 0.41. This is comparable to the rest of the industry: 1ERICB outperforms 51.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 1.02 | ||
| Altman-Z | N/A |
ROIC/WACC2.11
WACC6.51%
2.3 Liquidity
1ERICB has a Current Ratio of 1.09. This is a normal value and indicates that 1ERICB is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of 1ERICB (1.09) is worse than 82.76% of its industry peers.
A Quick Ratio of 0.88 indicates that 1ERICB may have some problems paying its short term obligations.
With a Quick ratio value of 0.88, 1ERICB is not doing good in the industry: 82.76% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The earnings per share for 1ERICB have decreased strongly by -46.92% in the last year.
Measured over the past years, 1ERICB shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -17.01% on average per year.
The Revenue has decreased by -1.79% in the past year.
The Revenue has been growing slightly by 1.76% on average over the past years.
EPS 1Y (TTM)-46.92%
EPS 3Y-38.27%
EPS 5Y-17.01%
EPS Q2Q%60.24%
Revenue 1Y (TTM)-1.79%
Revenue growth 3Y2.19%
Revenue growth 5Y1.76%
Sales Q2Q%3.19%
3.2 Future
The Earnings Per Share is expected to grow by 45.47% on average over the next years. This is a very strong growth
1ERICB is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.82% yearly.
EPS Next Y267.53%
EPS Next 2Y93.12%
EPS Next 3Y58.42%
EPS Next 5Y45.47%
Revenue Next Year0.35%
Revenue Next 2Y0.68%
Revenue Next 3Y1.13%
Revenue Next 5Y-0.82%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 40.88, the valuation of 1ERICB can be described as expensive.
62.07% of the companies in the same industry are more expensive than 1ERICB, based on the Price/Earnings ratio.
1ERICB is valuated expensively when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
1ERICB is valuated correctly with a Price/Forward Earnings ratio of 14.01.
86.21% of the companies in the same industry are more expensive than 1ERICB, based on the Price/Forward Earnings ratio.
1ERICB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.88 | ||
| Fwd PE | 14.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1ERICB is valued a bit cheaper than the industry average as 79.31% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, 1ERICB is valued cheaper than 82.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.14 | ||
| EV/EBITDA | 7.64 |
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 58.42% in the coming years.
PEG (NY)0.15
PEG (5Y)N/A
EPS Next 2Y93.12%
EPS Next 3Y58.42%
5. Dividend
5.1 Amount
1ERICB has a Yearly Dividend Yield of 3.18%.
1ERICB's Dividend Yield is rather good when compared to the industry average which is at 5.17. 1ERICB pays more dividend than 93.10% of the companies in the same industry.
1ERICB's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| 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
573.48% of the earnings are spent on dividend by 1ERICB. This is not a sustainable payout ratio.
1ERICB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP573.48%
EPS Next 2Y93.12%
EPS Next 3Y58.42%
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)249.58B
Net Income(TTM)1.61B
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%
DP573.48%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)19.55%
Min EPS beat(2)-10.72%
Max EPS beat(2)49.81%
EPS beat(4)2
Avg EPS beat(4)-132.41%
Min EPS beat(4)-588.91%
Max EPS beat(4)49.81%
EPS beat(8)6
Avg EPS beat(8)-35.54%
EPS beat(12)7
Avg EPS beat(12)-21.49%
EPS beat(16)9
Avg EPS beat(16)-14.64%
Revenue beat(2)0
Avg Revenue beat(2)-1.28%
Min Revenue beat(2)-2.1%
Max Revenue beat(2)-0.45%
Revenue beat(4)1
Avg Revenue beat(4)-0.39%
Min Revenue beat(4)-2.1%
Max Revenue beat(4)1.67%
Revenue beat(8)1
Avg Revenue beat(8)-1.78%
Revenue beat(12)5
Avg Revenue beat(12)-0.75%
Revenue beat(16)7
Avg Revenue beat(16)-0.79%
PT rev (1m)-0.03%
PT rev (3m)2.57%
EPS NQ rev (1m)11.73%
EPS NQ rev (3m)30.94%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.46%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)-2.95%
Revenue NY rev (1m)-0.43%
Revenue NY rev (3m)-3.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.88 | ||
| Fwd PE | 14.01 | ||
| P/S | 1.19 | ||
| P/FCF | 7.14 | ||
| P/OCF | 6.53 | ||
| P/B | 3.46 | ||
| P/tB | 12.85 | ||
| EV/EBITDA | 7.64 |
EPS(TTM)0.2
EY2.45%
EPS(NY)0.58
Fwd EY7.14%
FCF(TTM)1.15
FCFY14.01%
OCF(TTM)1.25
OCFY15.31%
SpS6.86
BVpS2.36
TBVpS0.64
PEG (NY)0.15
PEG (5Y)N/A
Graham Number3.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 1.87% | ||
| ROCE | 18.28% | ||
| ROIC | 13.71% | ||
| ROICexc | 20.76% | ||
| ROICexgc | 59.44% | ||
| OM | 10.72% | ||
| PM (TTM) | 0.65% | ||
| GM | 46.21% | ||
| FCFM | 16.7% |
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-Score7
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 1.02 | ||
| Debt/EBITDA | 0.94 | ||
| Cap/Depr | 36.59% | ||
| Cap/Sales | 1.55% | ||
| Interest Coverage | 10.63 | ||
| Cash Conversion | 122.12% | ||
| Profit Quality | 2589.32% | ||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | N/A |
F-Score7
WACC6.51%
ROIC/WACC2.11
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)-46.92%
EPS 3Y-38.27%
EPS 5Y-17.01%
EPS Q2Q%60.24%
EPS Next Y267.53%
EPS Next 2Y93.12%
EPS Next 3Y58.42%
EPS Next 5Y45.47%
Revenue 1Y (TTM)-1.79%
Revenue growth 3Y2.19%
Revenue growth 5Y1.76%
Sales Q2Q%3.19%
Revenue Next Year0.35%
Revenue Next 2Y0.68%
Revenue Next 3Y1.13%
Revenue Next 5Y-0.82%
EBIT growth 1Y48.21%
EBIT growth 3Y-10.75%
EBIT growth 5Y16.26%
EBIT Next Year84.47%
EBIT Next 3Y23.21%
EBIT Next 5Y17.34%
FCF growth 1Y126.71%
FCF growth 3Y7.36%
FCF growth 5Y33.08%
OCF growth 1Y82.12%
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 40.88 and the Price/Book (PB) ratio is 3.46.
Can you provide the financial health for 1ERICB stock?
The financial health rating of ERICSSON LM-B SHS (1ERICB.MI) is 4 / 10.