First Time Loading...

Telefonaktiebolaget LM Ericsson
NASDAQ:ERIC

Watchlist Manager
Telefonaktiebolaget LM Ericsson Logo
Telefonaktiebolaget LM Ericsson
NASDAQ:ERIC
Watchlist
Price: 5.51 USD Market Closed
Updated: Mar 29, 2024

Intrinsic Value

Telefonaktiebolaget LM Ericsson engages in the provision of telecommunications equipment and related services to mobile and fixed network operators. [ Read More ]

The intrinsic value of one ERIC stock under the Base Case scenario is 9.57 USD. Compared to the current market price of 5.51 USD, Telefonaktiebolaget LM Ericsson is Undervalued by 42%.

Key Points:
ERIC Intrinsic Value
Base Case
9.57 USD
Undervaluation 42%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation Backtest
Telefonaktiebolaget LM Ericsson

Backtest ERIC Intrinsic Value
Dive into the past to invest in the future

Run backtest to discover the historical profit from buying and selling ERIC stocks based on their intrinsic value.

Analyze the historical link between intrinsic value and market price to make more informed investment decisions.

Run Backtest
Settings
Valuation Methods
Buy/Sell Thresholds
Buy When:
%
Sell When:
%
B
S
Run Backtest
How does it work?

Fundamental Analysis

Ericsson Reports Solid EBITA Amid Market Headwinds
2023-Q4 Earnings Call

Ericsson Reports Solid EBITA Amid Market Headwinds

Ericsson faced a demanding mobile networks market in 2023, with severe headwinds, especially a near 50% revenue drop in North America. Yet, they finished with a robust quarter, achieving an EBITA of SEK 21.4 billion for the year. Sales shrunk by 10%, driven by a 15% fall in networks. The company foresaw market conditions worsening further and remained devoted to managing what's within control while upholding investments for future growth. They partially realized their SEK 12 billion cost savings target—expected to fully manifest in 2024—and maintained a gross margin of 39.6% and an EBITA margin of 8.1%. Despite the bumpy road ahead, Ericsson's leaders showed their commitment to the long-term financial targets, expecting critical contracts like AT&T to ramp up in the second half of 2024, and proposed a dividend of SEK 2.70 per share.

Financials

Balance Sheet Decomposition
Telefonaktiebolaget LM Ericsson

Current Assets 155B
Cash & Short-Term Investments 44.8B
Receivables 74.1B
Other Current Assets 36.1B
Non-Current Assets 142B
Long-Term Investments 19.5B
PP&E 18.5B
Intangibles 80.3B
Other Non-Current Assets 23.7B
Current Liabilities 129.4B
Accounts Payable 27.8B
Other Current Liabilities 101.6B
Non-Current Liabilities 69B
Long-Term Debt 34.4B
Other Non-Current Liabilities 34.5B
Efficiency

Earnings Waterfall
Telefonaktiebolaget LM Ericsson

Revenue
263.4B SEK
Cost of Revenue
-158.9B SEK
Gross Profit
104.4B SEK
Operating Expenses
-86.4B SEK
Operating Income
18B SEK
Other Expenses
-44.4B SEK
Net Income
-26.4B SEK

Free Cash Flow Analysis
Telefonaktiebolaget LM Ericsson

Last Value
3-Years Average
FCF Margin
Conversion Rate
History
Components
Chart
Table
What is Free Cash Flow?
Fundamental Scores

ERIC Profitability Score
Profitability Due Diligence

Telefonaktiebolaget LM Ericsson's profitability score is 50/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Positive Free Cash Flow
Positive 3-Year Average ROE
Positive 3-Years Revenue Growth
50/100
Profitability
Score

Telefonaktiebolaget LM Ericsson's profitability score is 50/100. The higher the profitability score, the more profitable the company is.

ERIC Solvency Score
Solvency Due Diligence

Telefonaktiebolaget LM Ericsson's solvency score is 51/100. The higher the solvency score, the more solvent the company is.

Low D/E
Negative Net Debt
Long-Term Solvency
Short-Term Solvency
51/100
Solvency
Score

Telefonaktiebolaget LM Ericsson's solvency score is 51/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

ERIC Price Targets Summary
Telefonaktiebolaget LM Ericsson

Wall Street analysts forecast ERIC stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for ERIC is 6.29 USD with a low forecast of 4.14 USD and a high forecast of 10.04 USD.

Lowest
Price Target
4.14 USD
25% Downside
Average
Price Target
6.29 USD
14% Upside
Highest
Price Target
10.04 USD
82% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Shareholder Return

ERIC B Price
Telefonaktiebolaget LM Ericsson

1M 1M
+3%
6M 6M
+8%
1Y 1Y
+2%
3Y 3Y
-47%
5Y 5Y
-26%
10Y 10Y
-14%
Annual Price Range
57.64
52w Low
48.865
52w High
64.22
Price Metrics
Average Annual Return -3.49%
Standard Deviation of Annual Returns 23.5%
Max Drawdown -57%
Shares Statistics
Market Capitalization 191.9B SEK
Shares Outstanding 3 329 990 694
Percentage of Shares Shorted
N/A

ERIC B Return Decomposition
Main factors of price return

What is price return decomposition?

ERIC News

Other Videos

Last Important Events
Telefonaktiebolaget LM Ericsson

Significant happenings or occurrences that are of interest to investors. These could be company-specific developments or market-wide shifts.

All
Positive
Negative

Sentiment Analysis
Telefonaktiebolaget LM Ericsson

Today
Last 7 Days 7D
Last 30 Days 30D
Last 90 Days 90D

Company Profile

Telefonaktiebolaget LM Ericsson Logo
Telefonaktiebolaget LM Ericsson

Country

Sweden

Industry

Communications

Market Cap

191.9B USD

Dividend Yield

4.56%

Description

Telefonaktiebolaget LM Ericsson engages in the provision of telecommunications equipment and related services to mobile and fixed network operators. The company is headquartered in Stockholm, Stockholm and currently employs 101,067 full-time employees. The company went IPO on 2008-01-01. The firm's segments include Networks, IT & Cloud and Media. The Networks segment consists of two business units: Network Products and Network Services. The overall focus is on evolving and managing access networks, including the development of hardware and software for radio access and transport networks. The IT & Cloud business includes two business units: IT & Cloud Products and IT & Cloud Services. The focus in IT & Cloud is to help telecom operators and selected enterprises through the digital transformations ahead. The company develops and delivers software-based solutions for television and media and combines a product portfolio that spans the television value chain, with systems integration and managed services. The portfolio includes compression, content publishing through set-top box or pure over-the-top, content delivery and analytics.

Contact

STOCKHOLM
Stockholm
Torshamnsgatan 21
+46107190000.0
https://www.ericsson.com/

IPO

2008-01-01

Employees

101 067

Officers

President, CEO & Director
Mr. E. Borje Ekholm MBA, MSc
Executive VP, Head of Business Area Network & Head of Segment Networks
Mr. Fredrik Jejdling
Senior VP, CFO and Head of Group Function Finance & Common Functions
Mr. Carl Mellander
Chief Accounting Officer
Ms. Eva-Britt Allenius
Senior VP, CTO & Head of Group Function Technology
Mr. Erik Ekudden
VP & Head of Investor Relations
Mr. Peter Nyquist
Show More
Senior VP, Chief Legal Officer, Head of Group Function Legal Affairs and Secretary
Mr. Scott Dresser
Chief Compliance Officer
Mr. Jan Sprafke
Head of Corporate Communications
Peter Olofsson
SVP, Chief Marketing & Communications Officer and Head of Group Function Mktg. & Corporate Relations
Ms. Stella Medlicott
Show Less

See Also

Discover More
What is the Intrinsic Value of one ERIC stock?

The intrinsic value of one ERIC stock under the Base Case scenario is 9.57 USD.

Is ERIC stock undervalued or overvalued?

Compared to the current market price of 5.51 USD, Telefonaktiebolaget LM Ericsson is Undervalued by 42%.