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

BIT:1ERICB • SE0000108656

Current stock price

9.106 EUR
+0.93 (+11.37%)
Last:

This 1ERICB.MI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. 1ERICB.MI Profitability Analysis

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.
  • In the past 5 years 1ERICB always reported a positive cash flow from operatings.
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

  • 1ERICB has a Return On Assets of 10.18%. This is amongst the best in the industry. 1ERICB outperforms 84.38% of its industry peers.
  • 1ERICB has a Return On Equity of 25.95%. This is amongst the best in the industry. 1ERICB outperforms 93.75% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 14.85%, 1ERICB belongs to the top 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

  • The Profit Margin of 1ERICB (12.01%) is better than 87.50% of its industry peers.
  • In the last couple of years the Profit Margin of 1ERICB has grown nicely.
  • 1ERICB's Operating Margin of 14.08% is amongst the best of the industry. 1ERICB outperforms 84.38% of its industry peers.
  • In the last couple of years the Operating Margin of 1ERICB has grown nicely.
  • 1ERICB has a better Gross Margin (48.14%) than 62.50% of its industry peers.
  • In the last couple of years the Gross Margin of 1ERICB has grown nicely.
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

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5

2. 1ERICB.MI Health Analysis

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

  • The Debt to FCF ratio of 1ERICB is 1.38, which is an excellent value as it means it would take 1ERICB, only 1.38 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of 1ERICB (1.38) is better than 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 of 0.32. This is comparable to the rest of the industry: 1ERICB outperforms 53.13% of 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

  • 1ERICB has a Current Ratio of 1.29. This is a normal value and indicates that 1ERICB is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 1.29, 1ERICB is doing worse than 68.75% of the companies in the same industry.
  • A Quick Ratio of 1.08 indicates that 1ERICB should not have too much problems paying its short term obligations.
  • The Quick ratio of 1ERICB (1.08) is worse 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

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3

3. 1ERICB.MI Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 440.40% over the past year.
  • Measured over the past years, 1ERICB shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.62% on average per year.
  • Looking at the last year, 1ERICB shows a decrease in Revenue. The Revenue has decreased by -4.52% in the last year.
  • 1ERICB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.37% yearly.
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

  • The Earnings Per Share is expected to decrease by -11.72% on average over the next years. This is quite bad
  • The Revenue is expected to decrease by -0.79% on average over the next years.
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

  • 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 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

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7

4. 1ERICB.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 10.59, the valuation of 1ERICB can be described as reasonable.
  • 1ERICB's Price/Earnings ratio is rather cheap when compared to the industry. 1ERICB is cheaper than 96.88% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.35, 1ERICB is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 14.49, the valuation of 1ERICB can be described as correct.
  • 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.
  • The average S&P500 Price/Forward Earnings ratio is at 22.61. 1ERICB is valued slightly cheaper when compared to this.
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 50

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1ERICB indicates a rather cheap valuation: 1ERICB is cheaper than 90.63% of the companies listed in the same industry.
  • 1ERICB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. 1ERICB is cheaper than 81.25% of the companies in the same industry.
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

  • 1ERICB has an outstanding profitability rating, which may justify a higher PE ratio.
  • A cheap valuation may be justified as 1ERICB's earnings are expected to decrease with -11.16% in the coming years.
PEG (NY)N/A
PEG (5Y)1.1
EPS Next 2Y-12.81%
EPS Next 3Y-11.16%

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7

5. 1ERICB.MI Dividend Analysis

5.1 Amount

  • 1ERICB has a Yearly Dividend Yield of 3.02%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.35, 1ERICB pays a better dividend. On top of this 1ERICB pays more dividend than 93.75% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.89, 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

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1ERICB.MI Fundamentals: All Metrics, Ratios and Statistics

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 Fundamental Analysis FAQ

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

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


What is the valuation status of ERICSSON LM-B SHS (1ERICB.MI) stock?

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


Can you provide the profitability details for ERICSSON LM-B SHS?

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


Can you provide the financial health for 1ERICB stock?

The financial health rating of ERICSSON LM-B SHS (1ERICB.MI) is 4 / 10.


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%.