ERIC:NSD-Telefonaktiebolaget LM Ericsson (publ) (USD)

COMMON STOCK | Communication Equipment | NSD

Last Closing Price

USD 12.53

Change

0.00 (0.00)%

Market Cap

USD 42.60B

Volume

4.73M

Average Target Price

USD 14.50 (+15.72%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

Telefonaktiebolaget LM Ericsson (publ) provides information and communications technology solutions for service providers. It operates through four segments: Networks, Digital Services, Managed Services, and Emerging Business and Other. The Networks segment provides hardware, software, and related services for radio access and transport, as well as related services, such as design, tuning, network rollout, and customer support. The Digital Services segment offers products and services for operators in the areas of business support systems, operations support systems, cloud core, cloud communication, network functions virtualization, and cloud infrastructure, as well as consulting, learning, and testing services. The Managed Services segment provides networks and IT managed, network design and optimization, and application development and maintenance services to operators. The Emerging Business and Other segment consists of emerging businesses; iconectiv that offers software-based interconnection solutions; and Red Bee Media, which consists of technology enabled services to manage the play-out platform for broadcasters and content owners. It operates in North America, Europe and Latin America, the Middle East and Africa, South East Asia, Oceania, India, North East Asia, and internationally. The company was founded in 1876 and is headquartered in Stockholm, Sweden. Address: Torshamnsgatan 21, Stockholm, Sweden, 164 83

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2021-02-28 )

Largest Industry Peers for Communication Equipment

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
CSCO Cisco Systems, Inc

N/A

USD189.43B 18.77 11.61
ZBRA Zebra Technologies Corporation

N/A

USD26.70B 53.42 35.60
LITE Lumentum Holdings Inc

N/A

USD6.81B 36.95 12.86
ACIA Acacia Communications, Inc

N/A

USD4.90B 71.91 64.16
VIAV Viavi Solutions Inc

N/A

USD3.70B 126.45 15.65
VSAT Viasat, Inc

N/A

USD3.50B 5,397.00 12.71
COMM CommScope Holding Company, Inc

N/A

USD2.93B 22.51 17.46
SATS EchoStar Corporation

N/A

USD2.13B 10.90 3.36
INFN Infinera Corporation

N/A

USD1.98B 51.60 N/A
PI Impinj, Inc

N/A

USD1.50B 273.30 N/A

ETFs Containing ERIC

Symbol Name Weight Mer Price(Change) Market Cap
GXF Global X FTSE Nordic Regi.. 0.00 % 0.56 %

N/A

USD0.03B
FIVG Defiance 5G Next Gen Conn.. 0.00 % 0.30 %

N/A

USD0.89B

Market Performance

  Market Performance vs.
Industry/Classification (Communication Equipment)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain 4.85% 20% F 43% F
Dividend Return N/A N/A N/A N/A N/A
Total Return 4.85% 20% F 43% F
Trailing 12 Months  
Capital Gain 55.85% 55% F 67% D+
Dividend Return 1.06% 33% F 18% F
Total Return 56.90% 53% F 67% D+
Trailing 5 Years  
Capital Gain 34.15% 43% F 44% F
Dividend Return 8.10% 30% F 24% F
Total Return 42.25% 40% F 43% F
Average Annual (5 Year Horizon)  
Capital Gain 13.14% 63% D 66% D
Dividend Return 1.53% 23% F 43% F
Total Return 14.67% 63% D 67% D+
Risk Return Profile  
Volatility (Standard Deviation) 23.00% 92% A- 63% D
Risk Adjusted Return 63.77% 86% B 80% B-
Market Capitalization 42.60B 98% A+ 98% A+
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 87%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Communication Equipment)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 23.93 70% C- 42% F
Price/Book Ratio 3.98 44% F 44% F
Price / Cash Flow Ratio 1.47 57% F 53% F
EV/EBITDA 1.12 97% A+ 92% A-
Management Effectiveness  
Return on Equity 21.10% 92% A- 91% A-
Return on Invested Capital 15.52% 88% B+ 88% B+
Return on Assets 6.71% 86% B 89% B+
Debt to Equity Ratio 25.63% 68% D+ 60% D-
Technical Ratios  
Short Ratio 0.43 70% C- 76% C
Short Percent N/A N/A N/A N/A N/A
Beta 0.12 100% A+ 93% A
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Low volatility

The stock’s annual returns have been stable and consistent compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters then its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Underpriced on free cash flow basis

The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

What to not like:
Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.