Telefonaktiebolaget LM Ericsson (publ) ERIC-B.ST
Composite 65/100; the shares have moved about 34% annualised. Names that move more contribute more risk for the same amount invested, and our composite reflects how strong the evidence for this one is right now.
Momentum ranks 38/100 — a moderate mark against it.
Income ranks 78/100 — a strong point in its favour. Valuation ranks 75/100 — a moderate point in its favour. Quality ranks 70/100 — a moderate point in its favour.
Momentum ranks 38/100 — a moderate mark against it.
What the company does Ericsson provides mobile connectivity solutions across Networks, Cloud Software and Services, and Enterprise segments, including 5G RAN, core networks, and enterprise communications platforms.
Key financials ROE 26.1%, ROA 7.0%, ROCE 25.0%; gross/operating/net margins 48.1%/12.5%/10.8%; revenue growth -6.1%, EPS growth -10.9%. Debt/Equity 0.38, interest coverage 15.18, current ratio 1.12.
Stock health Sideravia Overall 63.2 (Strong quality, attractively valued); Quality 72.8, Valuation 73.9, Income 82.6. 12-month momentum 39.39%, RSI(14) 39.90, -25.08% from 52-week high.
Price vs fair value The stock trades at a PREMIUM of 25.00% versus our fair-value estimate and a discount of 0.63% versus the analyst 12-month target. - Fair-value premium reflects strong quality metrics but elevated valuation multiples (Valuation percentile 73.9/100, P/E 12.75, EV/EBITDA 6.59). - Recent selloff tied to broader sector concerns, not fundamentals (Why Ericsson’s Worst Day in Three Years Wasn’t About This Quarter’s Numbers (Insider Monkey)). - Partnership expansion with Nvidia may support long-term growth (ChipAgents raises $60 million, expands Nvidia partnership (Quartz)).
Looking forward Forward P/E 20.00 suggests valuation expansion is already priced in; dividend yield 3.2% supports income appeal. Growth remains challenged (revenue -6.1%, EPS -10.9%), but ROE and margins remain robust.
This is not investment advice. Sideravia provides automated, data-driven analysis for information and education only. Nothing on this page is a personal recommendation or an invitation to buy or sell any security, and it does not consider your objectives or financial situation. Assessments are generated by rules applied uniformly to every covered stock — how our scores work.
Data as of 2026-09-05, compiled from third-party sources; errors and delays are possible and figures are not warranted. Investing puts your capital at risk; past performance does not predict future results. We publish our full track record, including the calls that lost, and our conflicts of interest.