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Ericsson (ERIC)

POSITIVE
TechnologyCommunication EquipmentSweden

Price

$12.28

Market Cap

$40.78B

Fundamental

71

Technical

75

Composite

72

AI Analysis

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Overview

Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions to communications service providers, enterprises, and the public sector in the Americas, Europe, the Middle East, Africa, Northeast Asia, Southeast Asia, Oceania, and India. It operates through Networks; Cloud Software and Services; Enterprise; and Other segments. The Networks segment offers hardware, software, and service offerings for intelligent, reliable and flexible 5G networks. This segment also provides energy-efficient RAN with an AI-native software architecture deployable on Ericsson silicon and third-party CPUs/GPUs; transport networks; and active/ passive antennas, as well as deployment and lifecycle management services. The Cloud Software and Services segment provides core networks, network management, business and operations support systems, and network operations delivered as managed services, including secure data and voice connectivity, service monetization and orchestration tools, and network management services. The Enterprise segment offers intelligent networking and advanced communications software solutions comprising global communications platform, wireless wide area networks (WWAN), and private 5G networks. The Other segment includes RedBee Media that prepares and distributes live and on-demand video services for broadcasters, sports leagues, and communications service providers. The company has a strategic collaboration with T-Mobile US, Inc for the development of AI-native Scheduler with Link Adaptation software. The company was formerly known as Allmanna Telefon AB LM Ericsson and changed its name to Telefonaktiebolaget LM Ericsson (publ) in January 1926. Telefonaktiebolaget LM Ericsson (publ) was founded in 1876 and is headquartered in Stockholm, Sweden.

Balance Sheet & Liquidity

Revenue

$236.68B

Net Income

$28.43B

Free Cash Flow

$29.49B

Total Equity

$94.20B

Total Liabilities

-

Current Ratio

1.12

Interest Coverage

-

Debt/EBITDA

-

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Fair Value Estimation

Undervalued

Fair Value

$72.52

Current Price

$12.28

Margin of Safety

+83.1%

Fair Value Range

$47.14 - $97.90

Estimation Methods

Analyst Target:$10.45
DCF:$277.98
PE-based:$13.78
Graham Growth:$19.94
EPV:$100.85
Analyst Consensus:Hold (5B / 13H / 10S)
Last Earnings Surprise:+20.34%

Valuation Metrics

P/E Ratio

15.54

ROE

27.0%

P/B Ratio

0.40

P/FCF

1.27

Gross Margin

48.0%

ROIC

-

Value Creation (Economic Moat)

ROIC

-

WACC

8.0%

ROIC − WACC

-

Fundamental Analysis Criteria

Passed (11)

  • Price CAGR 7.74%
  • Gross Margin 48.0%
  • P/FCF 1.27
  • P/B Ratio 0.40
  • Positive Free Cash Flow
  • Current Ratio
  • DCF valuation (Undervalued)
  • ROE 25.1%
  • Earnings Surprise avg 37.1%
  • PEG Ratio 1.48
  • Net Margin Trend 12.0% vs 0.0%

Failed (3)

  • Revenue Growth 5Y 0.4%
  • Analyst Consensus 18% Buy
  • Piotroski F-Score 0/9

Unavailable (13)

  • EPS data insufficient
  • ROIC NaN%
  • Dividend Payout NaN%
  • Debt/Equity ratio
  • Operating Margin NaN%
  • CapEx intensity
  • Interest Coverage
  • Debt/EBITDA
  • Return on Tangible Assets
  • Low reliance on intangibles
  • Price below Graham Number
  • Earnings Quality (OCF/Net Income)
  • Share Dilution (missing shares data)

Price Chart

Technical Indicators

RSI (14)

47.21

SMA 50

$12.21

SMA 200

$10.41

MACD

-0.18

Volatility

2.2%

Momentum (12m)

44.5%

RSI 47.2, SMA trend bullish, momentum 44.5%.

Piotroski F-Score

0/9

Serious financial concerns

score
criteria

Earnings Quality

-

Low quality: investigate accounting

Share Dilution

-

Buying back shares. Shareholder friendly

Governance

Executive Team

NameTitleAge
Mr. E. Borje Ekholm MBA, MScPresident, Head of Segment Enterprise & Director62
Mr. Per NarvingerExecutive VP & Head of Business Area Networks51
Mr. Johan JardevallChief Executive Officer-
Mr. Lars Sandstrom M.Sc.Senior VP, Head of Group Function Finance & CFO53
Mr. Chris HoughtonSenior VP, COO and Head of Group Function & Group Support59
Ms. Eva-Britt AlleniusChief Accounting Officer-
Mr. Erik EkuddenSenior VP, CTO & Head of Group Function Technology57
Daniel MorrisHead of Investor Relations-
Mr. Scott DresserSr. VP, Chief Legal Officer, Secretary and Head of Group Function Legal Affairs & Compliance58
Ms. Rebecca RohrChief Compliance Officer-

Latest News

Recent headlines for ERIC, sourced from Markets Gazette.

  • 3/3/2026NEGATIVE
    AI: Missori (Ericsson), Italia al palo su 5G Standalone, serve supporto pubblico

    Ericsson CEO, Missori, voiced concerns over Italy's lag in 5G Standalone adoption, emphasizing the need for increased public support. Speaking at the Mobile Congress in Barcelona, Missori highlighted the critical interconnection between networks, artificial intelligence, and 5G, a crucial area for future growth. Italy's slowdown could hinder infrastructure investments and technological innovation within the country, potentially impacting Ericsson's business prospects in a key market. The call for state intervention suggests significant hurdles that could delay the deployment of vital digitalization technologies.

via Markets Gazette

Disclaimer

This platform is for educational purposes only. It does not provide financial, investment, or trading advice. All scores, valuations, and signals are based on automated analysis of publicly available data that may be incomplete or inaccurate. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

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