9.57 USD
+0.07 (+0.74%)
9.57 USD
0 (0%)
Overall ERIC gets a fundamental rating of 6 out of 10. We evaluated ERIC 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on ERIC. Finally ERIC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ERIC was profitable.
In the past year ERIC had a positive cash flow from operations.
ERIC had positive earnings in 4 of the past 5 years.
In the past 5 years ERIC always reported a positive cash flow from operatings.
1.2 Ratios
ERIC has a Return On Assets of 8.72%. This is amongst the best in the industry. ERIC outperforms 85.42% of its industry peers.
Looking at the Return On Equity, with a value of 24.01%, ERIC belongs to the top of the industry, outperforming 89.58% of the companies in the same industry.
The Return On Invested Capital of ERIC (15.20%) is better than 89.58% of its industry peers.
ERIC had an Average Return On Invested Capital over the past 3 years of 10.59%. This is in line with the industry average of 12.31%.
The 3 year average ROIC (10.59%) for ERIC is below the current ROIC(15.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.72% | ||
| ROE | 24.01% | ||
| ROIC | 15.2% |
ROA(3y)-1.18%
ROA(5y)2.06%
ROE(3y)-4.3%
ROE(5y)5.63%
ROIC(3y)10.59%
ROIC(5y)12.19%
1.3 Margins
ERIC has a better Profit Margin (10.26%) than 81.25% of its industry peers.
In the last couple of years the Profit Margin of ERIC has declined.
ERIC has a Operating Margin of 12.97%. This is amongst the best in the industry. ERIC outperforms 81.25% 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 47.62%, ERIC is in the better half of the industry, outperforming 64.58% of the companies in the same industry.
In the last couple of years the Gross Margin of ERIC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.97% | ||
| 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%
2. Health
2.1 Basic Checks
ERIC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for ERIC remains at a similar level compared to 1 year ago.
ERIC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ERIC has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of ERIC is 1.45, which is an excellent value as it means it would take ERIC, only 1.45 years of fcf income to pay off all of its debts.
ERIC has a better Debt to FCF ratio (1.45) than 72.92% of its industry peers.
ERIC has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
ERIC has a worse Debt to Equity ratio (0.35) than 68.75% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 1.45 | ||
| Altman-Z | N/A |
ROIC/WACC1.91
WACC7.98%
2.3 Liquidity
A Current Ratio of 1.17 indicates that ERIC should not have too much problems paying its short term obligations.
ERIC's Current ratio of 1.17 is on the low side compared to the rest of the industry. ERIC is outperformed by 85.42% of its industry peers.
ERIC has a Quick Ratio of 1.17. This is a bad value and indicates that ERIC is not financially healthy enough and could expect problems in meeting its short term obligations.
ERIC has a worse Quick ratio (0.94) than 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
ERIC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 541.12%, which is quite impressive.
The earnings per share for ERIC have been decreasing by -17.01% on average. This is quite bad
The Revenue has decreased by -2.65% in the past year.
ERIC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.76% yearly.
EPS 1Y (TTM)541.12%
EPS 3Y-38.27%
EPS 5Y-17.01%
EPS Q2Q%113.66%
Revenue 1Y (TTM)-2.65%
Revenue growth 3Y2.19%
Revenue growth 5Y1.76%
Sales Q2Q%-8.99%
3.2 Future
The Earnings Per Share is expected to grow by 30.35% on average over the next years. This is a very strong growth
The Revenue is expected to decrease by -0.85% on average over the next years.
EPS Next Y353.22%
EPS Next 2Y97.02%
EPS Next 3Y58.69%
EPS Next 5Y30.35%
Revenue Next Year-5.08%
Revenue Next 2Y-2.74%
Revenue Next 3Y-1.17%
Revenue Next 5Y-0.85%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.63 indicates a reasonable valuation of ERIC.
Based on the Price/Earnings ratio, ERIC is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.34. ERIC is valued rather cheaply when compared to this.
ERIC is valuated correctly with a Price/Forward Earnings ratio of 13.55.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ERIC indicates a rather cheap valuation: ERIC is cheaper than 85.42% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.56, ERIC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.63 | ||
| Fwd PE | 13.55 |
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 93.75% 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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.87 | ||
| EV/EBITDA | 6.92 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ERIC has an outstanding profitability rating, which may justify a higher PE ratio.
ERIC's earnings are expected to grow with 58.69% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y97.02%
EPS Next 3Y58.69%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.15%, 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 3.36. ERIC pays more dividend than 89.58% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, ERIC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
5.2 History
The dividend of ERIC is nicely growing with an annual growth rate of 22.02%!
ERIC has been paying a dividend for at least 10 years, so it has a reliable track record.
As ERIC did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)22.02%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
ERIC pays out 37.84% of its income as dividend. This is a sustainable payout ratio.
ERIC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.84%
EPS Next 2Y97.02%
EPS Next 3Y58.69%
9.57
+0.07 (+0.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners54.97%
Inst Owner Change-18.49%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap31.90B
Revenue(TTM)240.31B
Net Income(TTM)24.64B
Analysts56.55
Price Target9.21 (-3.76%)
Short Float %1.01%
Short Ratio1.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.15% |
Yearly Dividend0.29
Dividend Growth(5Y)22.02%
DP37.84%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)49.11%
Min EPS beat(2)20.62%
Max EPS beat(2)77.6%
EPS beat(4)3
Avg EPS beat(4)34.33%
Min EPS beat(4)-10.72%
Max EPS beat(4)77.6%
EPS beat(8)6
Avg EPS beat(8)-29.88%
EPS beat(12)9
Avg EPS beat(12)-11.71%
EPS beat(16)10
Avg EPS beat(16)-8.77%
Revenue beat(2)0
Avg Revenue beat(2)-3.63%
Min Revenue beat(2)-6.39%
Max Revenue beat(2)-0.88%
Revenue beat(4)0
Avg Revenue beat(4)-2.46%
Min Revenue beat(4)-6.39%
Max Revenue beat(4)-0.45%
Revenue beat(8)1
Avg Revenue beat(8)-2.31%
Revenue beat(12)3
Avg Revenue beat(12)-1.5%
Revenue beat(16)7
Avg Revenue beat(16)-0.68%
PT rev (1m)-0.48%
PT rev (3m)10.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)14.05%
EPS NY rev (1m)1.11%
EPS NY rev (3m)20.56%
Revenue NQ rev (1m)-1.04%
Revenue NQ rev (3m)-1.51%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-1.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.63 | ||
| Fwd PE | 13.55 | ||
| P/S | 1.25 | ||
| P/FCF | 9.87 | ||
| P/OCF | 8.84 | ||
| P/B | 2.92 | ||
| P/tB | 6.69 | ||
| EV/EBITDA | 6.92 |
EPS(TTM)0.9
EY9.4%
EPS(NY)0.71
Fwd EY7.38%
FCF(TTM)0.97
FCFY10.13%
OCF(TTM)1.08
OCFY11.31%
SpS7.66
BVpS3.27
TBVpS1.43
PEG (NY)0.03
PEG (5Y)N/A
Graham Number8.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.72% | ||
| ROE | 24.01% | ||
| ROCE | 19.24% | ||
| ROIC | 15.2% | ||
| ROICexc | 22.2% | ||
| ROICexgc | 46.36% | ||
| OM | 12.97% | ||
| 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)10.59%
ROIC(5y)12.19%
ROICexc(3y)14.83%
ROICexc(5y)17.86%
ROICexgc(3y)47.09%
ROICexgc(5y)43.4%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 1.45 | ||
| Debt/EBITDA | 0.87 | ||
| Cap/Depr | 36.83% | ||
| Cap/Sales | 1.48% | ||
| Interest Coverage | 13.31 | ||
| Cash Conversion | 83.18% | ||
| Profit Quality | 123.37% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | N/A |
F-Score6
WACC7.98%
ROIC/WACC1.91
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)541.12%
EPS 3Y-38.27%
EPS 5Y-17.01%
EPS Q2Q%113.66%
EPS Next Y353.22%
EPS Next 2Y97.02%
EPS Next 3Y58.69%
EPS Next 5Y30.35%
Revenue 1Y (TTM)-2.65%
Revenue growth 3Y2.19%
Revenue growth 5Y1.76%
Sales Q2Q%-8.99%
Revenue Next Year-5.08%
Revenue Next 2Y-2.74%
Revenue Next 3Y-1.17%
Revenue Next 5Y-0.85%
EBIT growth 1Y54.66%
EBIT growth 3Y-10.75%
EBIT growth 5Y16.26%
EBIT Next Year111.11%
EBIT Next 3Y21.86%
EBIT Next 5Y15.14%
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) TEL-SP ADR / ERIC FAQ
What is the fundamental rating for ERIC stock?
ChartMill assigns a fundamental rating of 6 / 10 to ERIC.
Can you provide the valuation status for ERICSSON (LM) TEL-SP ADR?
ChartMill assigns a valuation rating of 9 / 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.
Can you provide the PE and PB ratios for ERIC stock?
The Price/Earnings (PE) ratio for ERICSSON (LM) TEL-SP ADR (ERIC) is 10.63 and the Price/Book (PB) ratio is 2.92.
Can you provide the financial health for ERIC stock?
The financial health rating of ERICSSON (LM) TEL-SP ADR (ERIC) is 4 / 10.