ERIC:NSD-Telefonaktiebolaget LM Ericsson (publ)

COMMON STOCK | Communication Equipment | NSD

Last Closing Price

USD 8.07

Change

-0.04 (-0.49)%

Market Cap

USD 1.03B

Volume

5.33M

Average Target Price

USD 10.08 (+24.94%)
Average Analyst Rating

Verdict

STA Verdict

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 mobile radio access networks, transport solutions, and site solutions, as well as related services, such as network rollout, network tuning, and customer support. The Digital Services segment offers products and services for service providers 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 vendor agnostic services, including networks and IT managed, application development and modernization, and network design and optimization services to manage service providers networks. The Emerging Business and Other segment consists of emerging businesses; iconectiv that offers software-based interconnection solutions; media 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 Europe and Latin America, the Middle East and Africa, North America, North East Asia, South East Asia, Oceania, and India. The company was founded in 1876 and is headquartered in Stockholm, Sweden.

Market Stats

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2019-08-23 )

Largest Industry Peers for Communication Equipment

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CMTL Comtech Telecommunications Cor..

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HLIT Harmonic Inc

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CASA Casa Systems, Inc

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VSAT Viasat, Inc

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ETFs Containing ERIC

Symbol Name Weight Mer Price(Change) Market Cap
FIVG Defiance 5G Next Gen Conn.. 4.27 % 0.00 %

-0.78 (-3.26%)

USD 0.09B
FWDI 0.00 % 1.25 %

N/A

N/A
EUR:CA First Trust AlphaDEX Euro.. 0.00 % 0.66 %

N/A

CAD 0.01B
EUR.A:CA 0.00 % 1.77 %

N/A

N/A

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 -9.02% 31% F 30% F
Dividend Return 1.23% 17% F 41% F
Total Return -7.79% 29% F 31% F
Trailing 12 Months  
Capital Gain -1.82% 67% D+ 68% D+
Dividend Return 1.33% 17% F 29% F
Total Return -0.50% 67% D+ 68% D+
Trailing 5 Years  
Capital Gain -35.44% 35% F 30% F
Dividend Return 7.40% 8% F 29% F
Total Return -28.04% 37% F 30% F
Average Annual (5 Year Horizon)  
Capital Gain -2.59% 28% F 30% F
Dividend Return 2.24% 46% F 59% F
Total Return -0.36% 38% F 33% F
Risk Return Profile  
Volatility (Standard Deviation) 28.12% 70% C- 48% F
Risk Adjusted Return -1.28% 38% F 33% F
Market Capitalization 1.03B 93% A 86% B
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%

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 89.70 25% F 13% F
Price/Book Ratio 2.49 36% F 41% F
Price / Cash Flow Ratio 25.40 22% F 13% F
EV/EBITDA 0.00 71% C- 60% D-
Management Effectiveness  
Return on Equity 0.56% 52% F 47% F
Return on Invested Capital 4.06% 60% D- 50% F
Return on Assets 3.70% 76% C 74% C
Debt to Equity Ratio 35.49% 50% F 51% F
Technical Ratios  
Short Ratio 1.92 63% D 72% C-
Short Percent 50.00% 4% F 10% F
Beta 0.26 96% A 82% B-
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

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 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.

What to not like:
Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Below median total returns

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

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

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

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Higly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Low Earnings Growth

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

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.