9.5 USD
-0.15 (-1.55%)
Taking everything into account, ERIC scores 6 out of 10 in our fundamental rating. ERIC was compared to 48 industry peers in the Communications Equipment industry. ERIC scores excellent on profitability, but there are some minor concerns on its financial health. ERIC scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally ERIC also has an excellent dividend rating.
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.
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.
ERIC has a Return On Equity of 24.01%. This is amongst the best in the industry. ERIC outperforms 89.58% of its industry peers.
ERIC has a Return On Invested Capital of 15.20%. This is amongst the best in the industry. ERIC outperforms 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 12.15%.
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.
With a decent Gross Margin value of 47.62%, ERIC is doing good in the industry, outperforming 62.50% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ERIC is creating value.
ERIC has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for ERIC has been increased compared to 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.
With a decent Debt to FCF ratio value of 1.45, ERIC is doing good in the industry, outperforming 72.92% of the companies in the same industry.
A Debt/Equity ratio of 0.35 indicates that ERIC is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.35, ERIC is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
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/WACC1.85
WACC8.22%
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's Quick ratio of 0.94 is on the low side compared to the rest of the industry. ERIC is outperformed by 77.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 541.12% over the past year.
Measured over the past years, ERIC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -17.01% on average per year.
The Revenue has decreased by -2.65% in the past year.
The Revenue has been growing slightly by 1.76% on average over the past years.
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
ERIC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.35% yearly.
Based on estimates for the next years, ERIC will show a decrease in Revenue. The Revenue will decrease by -0.85% on average per year.
EPS Next Y352.29%
EPS Next 2Y97.18%
EPS Next 3Y58.79%
EPS Next 5Y30.35%
Revenue Next Year-5.09%
Revenue Next 2Y-2.77%
Revenue Next 3Y-1.19%
Revenue Next 5Y-0.85%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.33, the valuation of ERIC can be described as very reasonable.
ERIC's Price/Earnings ratio is rather cheap when compared to the industry. ERIC is cheaper than 95.83% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.51, ERIC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 13.14, the valuation of ERIC can be described as correct.
81.25% of the companies in the same industry are more expensive than ERIC, based on the Price/Forward Earnings ratio.
ERIC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.33 | ||
| Fwd PE | 13.14 |
4.2 Price Multiples
93.75% of the companies in the same industry are more expensive than ERIC, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ERIC indicates a rather cheap valuation: ERIC is cheaper than 89.58% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.59 | ||
| EV/EBITDA | 6.88 |
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.
A more expensive valuation may be justified as ERIC's earnings are expected to grow with 58.79% in the coming years.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y97.18%
EPS Next 3Y58.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.18%, ERIC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.77, ERIC pays a better dividend. On top of this ERIC pays more dividend than 89.58% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, ERIC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
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.
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.
The dividend of ERIC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.84%
EPS Next 2Y97.18%
EPS Next 3Y58.79%
NASDAQ:ERIC (1/2/2026, 2:30:08 PM)
9.5
-0.15 (-1.55%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners54.97%
Inst Owner Change-18.64%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap31.67B
Revenue(TTM)240.31B
Net Income(TTM)24.64B
Analysts56.55
Price Target9.37 (-1.37%)
Short Float %1.19%
Short Ratio2.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
Yearly Dividend0.3
Dividend Growth(5Y)22.02%
DP37.84%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
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)2.99%
PT rev (3m)9.79%
EPS NQ rev (1m)-2.91%
EPS NQ rev (3m)10.73%
EPS NY rev (1m)0.9%
EPS NY rev (3m)21.59%
Revenue NQ rev (1m)-1.17%
Revenue NQ rev (3m)-1.64%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-1.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.33 | ||
| Fwd PE | 13.14 | ||
| P/S | 1.21 | ||
| P/FCF | 9.59 | ||
| P/OCF | 8.59 | ||
| P/B | 2.84 | ||
| P/tB | 6.5 | ||
| EV/EBITDA | 6.88 |
EPS(TTM)0.92
EY9.68%
EPS(NY)0.72
Fwd EY7.61%
FCF(TTM)0.99
FCFY10.42%
OCF(TTM)1.11
OCFY11.64%
SpS7.83
BVpS3.34
TBVpS1.46
PEG (NY)0.03
PEG (5Y)N/A
Graham Number8.32
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
WACC8.22%
ROIC/WACC1.85
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 Y352.29%
EPS Next 2Y97.18%
EPS Next 3Y58.79%
EPS Next 5Y30.35%
Revenue 1Y (TTM)-2.65%
Revenue growth 3Y2.19%
Revenue growth 5Y1.76%
Sales Q2Q%-8.99%
Revenue Next Year-5.09%
Revenue Next 2Y-2.77%
Revenue Next 3Y-1.19%
Revenue Next 5Y-0.85%
EBIT growth 1Y54.66%
EBIT growth 3Y-10.75%
EBIT growth 5Y16.26%
EBIT Next Year112.01%
EBIT Next 3Y21.84%
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.
What is the valuation status of ERICSSON (LM) TEL-SP ADR (ERIC) stock?
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.
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 grow by 352.29% in the next year.
Can you provide the dividend sustainability for ERIC stock?
The dividend rating of ERICSSON (LM) TEL-SP ADR (ERIC) is 8 / 10 and the dividend payout ratio is 37.84%.