ERICSSON LM-B SHS (1ERICB.MI) Stock Fundamental Analysis
Europe - BIT:1ERICB - SE0000108656 - Common Stock
7.91 EUR
+0.75 (+10.41%)
We assign a fundamental rating of 5 out of 10 to 1ERICB. 1ERICB was compared to 28 industry peers in the Communications Equipment industry. 1ERICB scores excellent on profitability, but there are some minor concerns on its financial health. 1ERICB has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
1ERICB had positive earnings in the past year.
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
With a decent Return On Assets value of 0.58%, 1ERICB is doing good in the industry, outperforming 64.00% of the companies in the same industry.
1ERICB has a Return On Equity of 1.87%. This is in the better half of the industry: 1ERICB outperforms 64.00% of its industry peers.
1ERICB has a better Return On Invested Capital (13.71%) than 96.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1ERICB is below the industry average of 12.36%.
The 3 year average ROIC (10.05%) for 1ERICB is below the current ROIC(13.71%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 0.65%, 1ERICB is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
1ERICB's Profit Margin has declined in the last couple of years.
1ERICB's Operating Margin of 10.72% is fine compared to the rest of the industry. 1ERICB outperforms 80.00% of its industry peers.
1ERICB's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 46.21%, 1ERICB perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
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.
Compared to 1 year ago, 1ERICB has about the same amount of shares outstanding.
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
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.
Looking at the Debt to FCF ratio, with a value of 1.02, 1ERICB belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
A Debt/Equity ratio of 0.41 indicates that 1ERICB is not too dependend on debt financing.
The Debt to Equity ratio of 1ERICB (0.41) is better than 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.41 | ||
| Debt/FCF | 1.02 | ||
| Altman-Z | N/A |
ROIC/WACC2.05
WACC6.69%
2.3 Liquidity
A Current Ratio of 1.09 indicates that 1ERICB should not have too much problems paying its short term obligations.
1ERICB has a worse Current ratio (1.09) than 72.00% 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: 60.00% 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
1ERICB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -46.92%.
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.
Looking at the last year, 1ERICB shows a decrease in Revenue. The Revenue has decreased by -1.79% in the last 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
Based on estimates for the next years, 1ERICB will show a very strong growth in Earnings Per Share. The EPS will grow by 45.47% on average per year.
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.
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
Based on the Price/Earnings ratio of 39.55, the valuation of 1ERICB can be described as expensive.
Based on the Price/Earnings ratio, 1ERICB is valued a bit cheaper than 64.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.38, 1ERICB is valued a bit more expensive.
A Price/Forward Earnings ratio of 13.50 indicates a correct valuation of 1ERICB.
1ERICB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1ERICB is cheaper than 80.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.86. 1ERICB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.55 | ||
| Fwd PE | 13.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1ERICB is valued a bit cheaper than 76.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 1ERICB is valued cheaper than 84.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.88 | ||
| EV/EBITDA | 7.35 |
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 3.41%.
Compared to an average industry Dividend Yield of 5.53, 1ERICB pays a better dividend. On top of this 1ERICB pays more dividend than 88.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, 1ERICB pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
5.2 History
The dividend of 1ERICB is nicely growing with an annual growth rate of 22.02%!
Dividend Growth(5Y)22.02%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1ERICB pays out 573.48% of its income as dividend. 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 (5/21/2025, 7:00:00 PM)
7.91
+0.75 (+10.41%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners52.48%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap26.36B
Analysts57.24
Price Target7.72 (-2.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.41% |
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 | 39.55 | ||
| Fwd PE | 13.5 | ||
| P/S | 1.15 | ||
| P/FCF | 6.88 | ||
| P/OCF | 6.29 | ||
| P/B | 3.33 | ||
| P/tB | 12.38 | ||
| EV/EBITDA | 7.35 |
EPS(TTM)0.2
EY2.53%
EPS(NY)0.59
Fwd EY7.41%
FCF(TTM)1.15
FCFY14.54%
OCF(TTM)1.26
OCFY15.89%
SpS6.89
BVpS2.37
TBVpS0.64
PEG (NY)0.15
PEG (5Y)N/A
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%
ROICexcg growth 3Y9.12%
ROICexcg 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
WACC6.69%
ROIC/WACC2.05
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%