Telefonaktiebolaget LM Ericsson
NASDAQ:ERIC
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%.
Valuation Backtest
Telefonaktiebolaget LM Ericsson
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.
Fundamental Analysis
Ericsson Reports Solid EBITA Amid Market Headwinds
2023-Q4 Earnings Call
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.
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 |
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
What is Free Cash Flow?
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.
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.
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
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.
Shareholder Return
ERIC B Price
Telefonaktiebolaget LM Ericsson
Average Annual Return | -3.49% |
Standard Deviation of Annual Returns | 23.5% |
Max Drawdown | -57% |
Market Capitalization | 191.9B SEK |
Shares Outstanding | 3 329 990 694 |
Percentage of Shares Shorted |
N/A
|
ERIC News
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.
Sentiment Analysis
Telefonaktiebolaget LM Ericsson
Company Profile
Country
Industry
Market Cap
Dividend Yield
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
IPO
Employees
Officers
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%.