Ericsson (ERIC)
POSITIVEPrice
$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
UndervaluedFair Value
$72.52
Current Price
$12.28
Margin of Safety
+83.1%
Fair Value Range
$47.14 - $97.90
Estimation Methods
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
Serious financial concerns
Earnings Quality
Low quality: investigate accounting
Share Dilution
Buying back shares. Shareholder friendly
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. E. Borje Ekholm MBA, MSc | President, Head of Segment Enterprise & Director | 62 |
| Mr. Per Narvinger | Executive VP & Head of Business Area Networks | 51 |
| Mr. Johan Jardevall | Chief Executive Officer | - |
| Mr. Lars Sandstrom M.Sc. | Senior VP, Head of Group Function Finance & CFO | 53 |
| Mr. Chris Houghton | Senior VP, COO and Head of Group Function & Group Support | 59 |
| Ms. Eva-Britt Allenius | Chief Accounting Officer | - |
| Mr. Erik Ekudden | Senior VP, CTO & Head of Group Function Technology | 57 |
| Daniel Morris | Head of Investor Relations | - |
| Mr. Scott Dresser | Sr. VP, Chief Legal Officer, Secretary and Head of Group Function Legal Affairs & Compliance | 58 |
| Ms. Rebecca Rohr | Chief Compliance Officer | - |
Latest News
Recent headlines for ERIC, sourced from Markets Gazette.
- 3/3/2026NEGATIVEAI: 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