ERICSSON (LM) TEL-SP ADR (ERIC) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:ERIC • US2948216088

10.94 USD
-0.11 (-1%)
At close: Feb 5, 2026
10.69 USD
-0.25 (-2.29%)
After Hours: 2/5/2026, 8:22:20 PM
Fundamental Rating

6

ERIC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. While ERIC has a great profitability rating, there are some minor concerns on its financial health. ERIC is cheap, but on the other hand it scores bad on growth. ERIC also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • ERIC had positive earnings in the past year.
  • In the past year ERIC had a positive cash flow from operations.
  • Of the past 5 years ERIC 4 years were profitable.
  • In the past 5 years ERIC always reported a positive cash flow from operatings.
ERIC Yearly Net Income VS EBIT VS OCF VS FCFERIC 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

  • ERIC's Return On Assets of 10.18% is amongst the best of the industry. ERIC outperforms 85.42% of its industry peers.
  • The Return On Equity of ERIC (25.95%) is better than 89.58% of its industry peers.
  • ERIC has a Return On Invested Capital of 15.64%. This is amongst the best in the industry. ERIC outperforms 89.58% of its industry peers.
Industry RankSector Rank
ROA 10.18%
ROE 25.95%
ROIC 15.64%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ERIC Yearly ROA, ROE, ROICERIC 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

  • ERIC has a Profit Margin of 12.01%. This is amongst the best in the industry. ERIC outperforms 83.33% of its industry peers.
  • In the last couple of years the Profit Margin of ERIC has grown nicely.
  • The Operating Margin of ERIC (14.08%) is better than 83.33% of its industry peers.
  • In the last couple of years the Operating Margin of ERIC has grown nicely.
  • Looking at the Gross Margin, with a value of 48.14%, ERIC is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
  • ERIC's Gross Margin has improved in the last couple of years.
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%
ERIC Yearly Profit, Operating, Gross MarginsERIC 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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4

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ERIC is still creating some value.
  • ERIC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
ERIC Yearly Shares OutstandingERIC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B
ERIC Yearly Total Debt VS Total AssetsERIC 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 ERIC is 1.38, which is an excellent value as it means it would take ERIC, only 1.38 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of ERIC (1.38) is better than 72.92% of its industry peers.
  • ERIC has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
  • ERIC has a worse Debt to Equity ratio (0.32) than 66.67% of its industry peers.
  • Even though the debt/equity ratio score it not favorable for ERIC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.38
Altman-Z N/A
ROIC/WACC1.71
WACC9.15%
ERIC Yearly LT Debt VS Equity VS FCFERIC 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

  • A Current Ratio of 1.29 indicates that ERIC should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.29, ERIC is doing worse than 83.33% of the companies in the same industry.
  • ERIC has a Quick Ratio of 1.08. This is a normal value and indicates that ERIC is financially healthy and should not expect problems in meeting its short term obligations.
  • ERIC has a Quick ratio of 1.08. This is in the lower half of the industry: ERIC underperforms 75.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.29
Quick Ratio 1.08
ERIC Yearly Current Assets VS Current LiabilitesERIC 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 413.40% over the past year.
  • ERIC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.51% yearly.
  • Looking at the last year, ERIC shows a decrease in Revenue. The Revenue has decreased by -4.52% in the last year.
  • ERIC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.37% yearly.
EPS 1Y (TTM)413.4%
EPS 3Y11.79%
EPS 5Y8.51%
EPS Q2Q%15.04%
Revenue 1Y (TTM)-4.52%
Revenue growth 3Y-4.48%
Revenue growth 5Y0.37%
Sales Q2Q%-8.73%

3.2 Future

  • The Earnings Per Share is expected to decrease by -10.81% on average over the next years. This is quite bad
  • ERIC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.79% yearly.
EPS Next Y-23.51%
EPS Next 2Y-10.55%
EPS Next 3Y-9.63%
EPS Next 5Y-10.81%
Revenue Next Year-0.39%
Revenue Next 2Y0.82%
Revenue Next 3Y0.13%
Revenue Next 5Y-0.79%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less 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.
ERIC Yearly Revenue VS EstimatesERIC 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
ERIC Yearly EPS VS EstimatesERIC 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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Find the best growth stocksShow best growing peers

7

4. Valuation

4.1 Price/Earnings Ratio

  • ERIC is valuated reasonably with a Price/Earnings ratio of 11.28.
  • Based on the Price/Earnings ratio, ERIC is valued cheaply inside the industry as 91.67% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 27.67. ERIC is valued rather cheaply when compared to this.
  • With a Price/Forward Earnings ratio of 14.71, ERIC is valued correctly.
  • 81.25% of the companies in the same industry are more expensive than ERIC, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 27.20. ERIC is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 11.28
Fwd PE 14.71
ERIC Price Earnings VS Forward Price EarningsERIC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ERIC indicates a rather cheap valuation: ERIC is cheaper than 91.67% of the companies listed in the same industry.
  • Based on the Price/Free Cash Flow ratio, ERIC is valued cheaper than 89.58% of the companies in the same industry.
Industry RankSector Rank
P/FCF 11.27
EV/EBITDA 7.04
ERIC Per share dataERIC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

  • The excellent profitability rating of ERIC may justify a higher PE ratio.
  • A cheap valuation may be justified as ERIC's earnings are expected to decrease with -9.63% in the coming years.
PEG (NY)N/A
PEG (5Y)1.33
EPS Next 2Y-10.55%
EPS Next 3Y-9.63%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 3.12%, ERIC has a reasonable but not impressive dividend return.
  • ERIC's Dividend Yield is rather good when compared to the industry average which is at 0.78. ERIC pays more dividend than 89.58% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, ERIC pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.12%

5.2 History

  • On average, the dividend of ERIC grows each year by 22.02%, which is quite nice.
  • ERIC has paid a dividend for at least 10 years, which is a reliable track record.
  • ERIC has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)22.02%
Div Incr Years5
Div Non Decr Years5
ERIC Yearly Dividends per shareERIC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.1 0.2 0.3 0.4

5.3 Sustainability

  • ERIC pays out 33.58% of its income as dividend. This is a sustainable payout ratio.
DP33.58%
EPS Next 2Y-10.55%
EPS Next 3Y-9.63%
ERIC Yearly Income VS Free CF VS DividendERIC 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
ERIC Dividend Payout.ERIC Dividend Payout, showing the Payout Ratio.ERIC Dividend Payout.PayoutRetained Earnings

More info and screens

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ERICSSON (LM) TEL-SP ADR

NASDAQ:ERIC (2/5/2026, 8:22:20 PM)

After market: 10.69 -0.25 (-2.29%)

10.94

-0.11 (-1%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)01-23
Earnings (Next)04-17
Inst Owners56.85%
Inst Owner Change-0.79%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap36.47B
Revenue(TTM)236.68B
Net Income(TTM)28.43B
Analysts56.43
Price Target9.66 (-11.7%)
Short Float %1.58%
Short Ratio4.64
Dividend
Industry RankSector Rank
Dividend Yield 3.12%
Yearly Dividend0.31
Dividend Growth(5Y)22.02%
DP33.58%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)59.63%
Min EPS beat(2)41.65%
Max EPS beat(2)77.6%
EPS beat(4)4
Avg EPS beat(4)47.42%
Min EPS beat(4)20.62%
Max EPS beat(4)77.6%
EPS beat(8)6
Avg EPS beat(8)-28.67%
EPS beat(12)10
Avg EPS beat(12)-7.61%
EPS beat(16)10
Avg EPS beat(16)-9.24%
Revenue beat(2)0
Avg Revenue beat(2)-1.04%
Min Revenue beat(2)-1.21%
Max Revenue beat(2)-0.88%
Revenue beat(4)0
Avg Revenue beat(4)-2.64%
Min Revenue beat(4)-6.39%
Max Revenue beat(4)-0.88%
Revenue beat(8)1
Avg Revenue beat(8)-1.57%
Revenue beat(12)2
Avg Revenue beat(12)-1.69%
Revenue beat(16)6
Avg Revenue beat(16)-0.97%
PT rev (1m)3.04%
PT rev (3m)4.36%
EPS NQ rev (1m)-4.58%
EPS NQ rev (3m)-6.59%
EPS NY rev (1m)0.73%
EPS NY rev (3m)9.19%
Revenue NQ rev (1m)-1.08%
Revenue NQ rev (3m)-1.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.66%
Valuation
Industry RankSector Rank
PE 11.28
Fwd PE 14.71
P/S 1.39
P/FCF 11.27
P/OCF 9.98
P/B 3
P/tB 6.19
EV/EBITDA 7.04
EPS(TTM)0.97
EY8.87%
EPS(NY)0.74
Fwd EY6.8%
FCF(TTM)0.97
FCFY8.87%
OCF(TTM)1.1
OCFY10.02%
SpS7.87
BVpS3.64
TBVpS1.77
PEG (NY)N/A
PEG (5Y)1.33
Graham Number8.92
Profitability
Industry RankSector Rank
ROA 10.18%
ROE 25.95%
ROCE 19.8%
ROIC 15.64%
ROICexc 23.58%
ROICexgc 47.63%
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
WACC9.15%
ROIC/WACC1.71
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)413.4%
EPS 3Y11.79%
EPS 5Y8.51%
EPS Q2Q%15.04%
EPS Next Y-23.51%
EPS Next 2Y-10.55%
EPS Next 3Y-9.63%
EPS Next 5Y-10.81%
Revenue 1Y (TTM)-4.52%
Revenue growth 3Y-4.48%
Revenue growth 5Y0.37%
Sales Q2Q%-8.73%
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) TEL-SP ADR / ERIC FAQ

What is the fundamental rating for ERIC stock?

ChartMill assigns a fundamental rating of 6 / 10 to ERIC.


What is the valuation status of ERICSSON (LM) TEL-SP ADR (ERIC) stock?

ChartMill assigns a valuation rating of 7 / 10 to ERICSSON (LM) TEL-SP ADR (ERIC). This can be considered as Undervalued.


How profitable is ERICSSON (LM) TEL-SP ADR (ERIC) stock?

ERICSSON (LM) TEL-SP ADR (ERIC) has a profitability rating of 8 / 10.


What is the expected EPS growth for ERICSSON (LM) TEL-SP ADR (ERIC) stock?

The Earnings per Share (EPS) of ERICSSON (LM) TEL-SP ADR (ERIC) is expected to decline by -23.51% in the next year.


Can you provide the dividend sustainability for ERIC stock?

The dividend rating of ERICSSON (LM) TEL-SP ADR (ERIC) is 7 / 10 and the dividend payout ratio is 33.58%.