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ERICSSON LM-B SHS (ERCB.DE) Stock Fundamental Analysis

Europe - FRA:ERCB - SE0000108656 - Common Stock

8.158 EUR
-0.07 (-0.87%)
Last: 10/24/2025, 7:00:00 PM
Fundamental Rating

6

Taking everything into account, ERCB scores 6 out of 10 in our fundamental rating. ERCB was compared to 29 industry peers in the Communications Equipment industry. ERCB has an excellent profitability rating, but there are some minor concerns on its financial health. ERCB is valued quite cheap, while showing a decent growth score. This is a good combination! ERCB also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

ERCB had positive earnings in the past year.
In the past year ERCB had a positive cash flow from operations.
ERCB had positive earnings in 4 of the past 5 years.
Each year in the past 5 years ERCB had a positive operating cash flow.
ERCB.DE Yearly Net Income VS EBIT VS OCF VS FCFERCB.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20B -20B 40B

1.2 Ratios

With an excellent Return On Assets value of 8.72%, ERCB belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
ERCB has a Return On Equity of 24.01%. This is amongst the best in the industry. ERCB outperforms 86.21% of its industry peers.
ERCB has a Return On Invested Capital of 16.85%. This is amongst the best in the industry. ERCB outperforms 89.66% of its industry peers.
ERCB had an Average Return On Invested Capital over the past 3 years of 9.43%. This is below the industry average of 12.11%.
The 3 year average ROIC (9.43%) for ERCB is below the current ROIC(16.85%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 8.72%
ROE 24.01%
ROIC 16.85%
ROA(3y)-1.18%
ROA(5y)2.06%
ROE(3y)-4.3%
ROE(5y)5.63%
ROIC(3y)9.43%
ROIC(5y)10.87%
ERCB.DE Yearly ROA, ROE, ROICERCB.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 -20 -30

1.3 Margins

ERCB has a better Profit Margin (10.26%) than 82.76% of its industry peers.
ERCB's Profit Margin has declined in the last couple of years.
ERCB has a better Operating Margin (16.13%) than 82.76% of its industry peers.
In the last couple of years the Operating Margin of ERCB has grown nicely.
With a Gross Margin value of 47.62%, ERCB perfoms like the industry average, outperforming 55.17% of the companies in the same industry.
In the last couple of years the Gross Margin of ERCB has grown nicely.
Industry RankSector Rank
OM 16.13%
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%
ERCB.DE Yearly Profit, Operating, Gross MarginsERCB.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40

4

2. Health

2.1 Basic Checks

ERCB has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
ERCB has about the same amout of shares outstanding than it did 1 year ago.
ERCB has more shares outstanding than it did 5 years ago.
ERCB has a better debt/assets ratio than last year.
ERCB.DE Yearly Shares OutstandingERCB.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B
ERCB.DE Yearly Total Debt VS Total AssetsERCB.DE 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 ERCB is 1.45, which is an excellent value as it means it would take ERCB, only 1.45 years of fcf income to pay off all of its debts.
ERCB has a Debt to FCF ratio of 1.45. This is in the better half of the industry: ERCB outperforms 79.31% of its industry peers.
ERCB has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.35, ERCB is in line with its industry, outperforming 58.62% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.35
Debt/FCF 1.45
Altman-Z N/A
ROIC/WACC2.7
WACC6.23%
ERCB.DE Yearly LT Debt VS Equity VS FCFERCB.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B

2.3 Liquidity

A Current Ratio of 1.17 indicates that ERCB should not have too much problems paying its short term obligations.
ERCB has a Current ratio of 1.17. This is in the lower half of the industry: ERCB underperforms 75.86% of its industry peers.
A Quick Ratio of 0.94 indicates that ERCB may have some problems paying its short term obligations.
ERCB has a worse Quick ratio (0.94) than 65.52% of its industry peers.
Industry RankSector Rank
Current Ratio 1.17
Quick Ratio 0.94
ERCB.DE Yearly Current Assets VS Current LiabilitesERCB.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B

4

3. Growth

3.1 Past

ERCB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 395.75%, which is quite impressive.
Measured over the past years, ERCB shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -17.01% on average per year.
ERCB shows a decrease in Revenue. In the last year, the revenue decreased by -2.65%.
Measured over the past years, ERCB 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
ERCB is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.77% yearly.
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

The EPS growth rate is accelerating: in the next years the growth will be better 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.
ERCB.DE Yearly Revenue VS EstimatesERCB.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 50B 100B 150B 200B 250B
ERCB.DE Yearly EPS VS EstimatesERCB.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 2 -2 4 6

8

4. Valuation

4.1 Price/Earnings Ratio

ERCB is valuated correctly with a Price/Earnings ratio of 13.60.
Based on the Price/Earnings ratio, ERCB is valued cheaper than 96.55% of the companies in the same industry.
ERCB is valuated rather cheaply when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.54, ERCB is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ERCB indicates a somewhat cheap valuation: ERCB is cheaper than 79.31% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.92. ERCB is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 13.6
Fwd PE 14.54
ERCB.DE Price Earnings VS Forward Price EarningsERCB.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ERCB is valued cheaply inside the industry as 89.66% of the companies are valued more expensively.
ERCB's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ERCB is cheaper than 72.41% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.77
EV/EBITDA 5.87
ERCB.DE Per share dataERCB.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

ERCB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of ERCB may justify a higher PE ratio.
ERCB's earnings are expected to grow with 55.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y89.39%
EPS Next 3Y55.91%

7

5. Dividend

5.1 Amount

ERCB has a Yearly Dividend Yield of 3.18%.
Compared to an average industry Dividend Yield of 5.20, ERCB pays a better dividend. On top of this ERCB pays more dividend than 89.66% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, ERCB pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.18%

5.2 History

The dividend of ERCB is nicely growing with an annual growth rate of 22.02%!
Dividend Growth(5Y)22.02%
Div Incr Years1
Div Non Decr Years6
ERCB.DE Yearly Dividends per shareERCB.DE Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

5.3 Sustainability

37.84% of the earnings are spent on dividend by ERCB. This is a low number and sustainable payout ratio.
The dividend of ERCB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.84%
EPS Next 2Y89.39%
EPS Next 3Y55.91%
ERCB.DE Yearly Income VS Free CF VS DividendERCB.DE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20B -20B 40B
ERCB.DE Dividend Payout.ERCB.DE Dividend Payout, showing the Payout Ratio.ERCB.DE Dividend Payout.PayoutRetained Earnings

ERICSSON LM-B SHS

FRA:ERCB (10/24/2025, 7:00:00 PM)

8.158

-0.07 (-0.87%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)10-14 2025-10-14/bmo
Earnings (Next)01-22 2026-01-22/amc
Inst Owners54.97%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap27.19B
Revenue(TTM)240.31B
Net Income(TTM)24.64B
Analysts56.43
Price Target7.12 (-12.72%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.18%
Yearly Dividend0.25
Dividend Growth(5Y)22.02%
DP37.84%
Div Incr Years1
Div Non Decr Years6
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)-0.95%
PT rev (3m)6.77%
EPS NQ rev (1m)-6.48%
EPS NQ rev (3m)-32.07%
EPS NY rev (1m)-1.05%
EPS NY rev (3m)1.18%
Revenue NQ rev (1m)-1.18%
Revenue NQ rev (3m)-11.66%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-3.89%
Valuation
Industry RankSector Rank
PE 13.6
Fwd PE 14.54
P/S 1.24
P/FCF 9.77
P/OCF 8.74
P/B 2.89
P/tB 6.62
EV/EBITDA 5.87
EPS(TTM)0.6
EY7.35%
EPS(NY)0.56
Fwd EY6.88%
FCF(TTM)0.84
FCFY10.24%
OCF(TTM)0.93
OCFY11.44%
SpS6.6
BVpS2.82
TBVpS1.23
PEG (NY)0.05
PEG (5Y)N/A
Graham Number6.17
Profitability
Industry RankSector Rank
ROA 8.72%
ROE 24.01%
ROCE 23.94%
ROIC 16.85%
ROICexc 24.6%
ROICexgc 51.38%
OM 16.13%
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)9.43%
ROIC(5y)10.87%
ROICexc(3y)13.21%
ROICexc(5y)15.92%
ROICexgc(3y)41.96%
ROICexgc(5y)38.68%
ROCE(3y)13.4%
ROCE(5y)15.43%
ROICexgc growth 3Y9.12%
ROICexgc growth 5Y7.91%
ROICexc growth 3Y-8.84%
ROICexc growth 5Y4.9%
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 RankSector Rank
Debt/Equity 0.35
Debt/FCF 1.45
Debt/EBITDA 0.73
Cap/Depr 36.83%
Cap/Sales 1.48%
Interest Coverage 16.56
Cash Conversion 70.13%
Profit Quality 123.37%
Current Ratio 1.17
Quick Ratio 0.94
Altman-Z N/A
F-Score6
WACC6.23%
ROIC/WACC2.7
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 1Y92.37%
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 / ERCB.DE FAQ

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

ChartMill assigns a fundamental rating of 6 / 10 to ERCB.DE.


What is the valuation status of ERICSSON LM-B SHS (ERCB.DE) stock?

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


How profitable is ERICSSON LM-B SHS (ERCB.DE) stock?

ERICSSON LM-B SHS (ERCB.DE) has a profitability rating of 8 / 10.


Can you provide the financial health for ERCB stock?

The financial health rating of ERICSSON LM-B SHS (ERCB.DE) is 4 / 10.


What is the expected EPS growth for ERICSSON LM-B SHS (ERCB.DE) stock?

The Earnings per Share (EPS) of ERICSSON LM-B SHS (ERCB.DE) is expected to grow by 271.88% in the next year.