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Telefonaktiebolaget LM Ericsson (publ) (ERIC) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Telefonaktiebolaget LM Ericsson (publ)

ERICMarket cap $31BPrice $9.4

Country🇸🇪Sweden

SectorTechnology

IndustryCommunications Equipment

Builds the cellular network infrastructure that connects 3 billion phones worldwide. Powers 5G networks for major carriers across six continents, making your mobile calls and data possible.

In Bastion Portfolios?

52W Return0%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)-0%3

Revenue Forecast

Rev CAGR (1y)-12%1

Rev CAGR (3y)-0%1

Rev CAGR (5y)-0%1

Earnings Forecast

EPS Growth Y+1-24%2

EPS Growth Y+2+2%4

EPS Growth Y+3+6%6

Quality

Margins

EBIT Margin14%6

Net Income Margin11%6

Free Cash Flow Margin14%7

Debt

Net Debt/EBITDA-0.410

Efficiency

ROE26%9

ROA9%8

Earnings Stability33

GEAR+AVERAGE52

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)175

P/E Ratio (Forward 3y)126

P/BV3.05

EV Multiples

EV/EBITDA Fwd79

EV/EBIT Fwd99

Yield

Free Cash Flow Yield10.1%9

Dividend Yield2.6%6

Momentum

Short term

1 month return-5%5

3 month return-12%3

YTD return-0%5

Mid term

Price vs 52wHigh69%3

1 year return+14%6

Long term

3 year return+113%8

5 year return-7%3

Risk Shield

Price Risk

Beta0.48

Volatility39%5

Free Cash Flow

Free Cash Flow Margin14%7

Free Cash Flow Yield10.1%9

Quality

ROCE20%9

Earnings Stability33

Net Debt/EBITDA-0.410

02Growth

Is it actually growing, and how fast?

ERICTelefonaktiebolaget LM Ericsson (publ)

Revenue FY25$25.5B

GROWTH RATING↗

VERY WEAK3 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-0%3

Revenue, next 1Y-12%1

Revenue, next 3Y, CAGR-0%1

Revenue, next 5Y, CAGR-0%1

EARNINGS FORECAST▾SCORE

EPS growth, FY26E-24%2

EPS growth, FY27E+2%4

EPS growth, FY28E+6%6

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

Earnings are set to grow in step with sales (EPS about 2%/yr vs revenue -0.1%/yr). One year dips: EPS falls 24% next year.

WEAKNESSES

Growth is the weak spot here, trailing 97% of companies worldwide.

Revenue held flat over the last 3 years, behind 70% of companies worldwide.3/10

Revenue is set to hold flat over the next 3 years, behind most of the market.1/10

Revenue held flat over the last 3 years and is set to keep shrinking around 0.1%/yr.

Over five years revenue is set to hold flat, behind 90% of companies worldwide.1/10

BOTTOM LINE

Stalled Business

Growth is a weak point here: a business that is still shrinking. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

ERICTelefonaktiebolaget LM Ericsson (publ)

Total return Current101%

Price return Current61.8%

MOMENTUM RATING↗

WEAK32 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-5%5

3-month return-12%3

YTD return-0%5

MID & LONG-TERM▾SCORE

% of 52-week high69%3

1-year return+14%6

3-year return+113%8

5-year return-7%3

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Average long-term results. Multi-year returns are middling (+113% over three years and -7.4% over five), roughly average for the market.

It's up 14% over the past year, but 31% below its 52-week high. That is right in line with the market.

Returns sit at the market level over the past month (-5%) and so far this year (+0%).

WEAKNESSES

The stock is underperforming over three months (-12%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the stock is underperforming over three months.

04Value

Are you paying a fair price for it?

Stop guessing on Ericsson. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

ERICTelefonaktiebolaget LM Ericsson (publ)

Revenue FY25$25.5B

GROWTH RATING↗

VERY WEAK3 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-0%3

Revenue, next 1Y-12%1

Revenue, next 3Y, CAGR-0%1

Revenue, next 5Y, CAGR-0%1

EARNINGS FORECAST▾SCORE

EPS growth, FY26E-24%2

EPS growth, FY27E+2%4

EPS growth, FY28E+6%6

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

Earnings are set to grow in step with sales (EPS about 2%/yr vs revenue -0.1%/yr). One year dips: EPS falls 24% next year.

WEAKNESSES

Growth is the weak spot here, trailing 97% of companies worldwide.

Revenue held flat over the last 3 years, behind 70% of companies worldwide.3/10

Revenue is set to hold flat over the next 3 years, behind most of the market.1/10

Revenue held flat over the last 3 years and is set to keep shrinking around 0.1%/yr.

Over five years revenue is set to hold flat, behind 90% of companies worldwide.1/10

BOTTOM LINE

Stalled Business

Growth is a weak point here: a business that is still shrinking. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

ERICTelefonaktiebolaget LM Ericsson (publ)

Total return Current101%

Price return Current61.8%

MOMENTUM RATING↗

WEAK32 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-5%5

3-month return-12%3

YTD return-0%5

MID & LONG-TERM▾SCORE

% of 52-week high69%3

1-year return+14%6

3-year return+113%8

5-year return-7%3

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Average long-term results. Multi-year returns are middling (+113% over three years and -7.4% over five), roughly average for the market.

It's up 14% over the past year, but 31% below its 52-week high. That is right in line with the market.

Returns sit at the market level over the past month (-5%) and so far this year (+0%).

WEAKNESSES

The stock is underperforming over three months (-12%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on Ericsson. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community