ERIC:NGS-Ericsson (USD)

EQUITY | Communication Equipment | Nasdaq Global Select

Last Closing

USD 5.51

Change

+0.08 (+1.47)%

Market Cap

USD 17.25B

Volume

0.01B

Analyst Target

USD 12.36
Analyst Rating

Verdict

ducovest Verdict

Verdict

About

LM Ericsson Telephone Co is a provider of communications technology and services. Its offerings include services, software and infrastructure in information and communications technology for telecom operators and other industries.

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2024-03-27 )

Largest Industry Peers for Communication Equipment

Symbol Name Price(Change) Market Cap
CSCO Cisco Systems Inc

-0.24 (-0.50%)

USD 201.57B
ZBRA Zebra Technologies Corporation

+4.68 (+1.60%)

USD 14.97B
SATS EchoStar Corporation

-0.02 (-0.12%)

USD 3.76B
PI Impinj Inc

-4.64 (-2.98%)

USD 3.46B
LITE Lumentum Holdings Inc

+1.41 (+3.36%)

USD 3.44B
CRDO Credo Technology Group Holding..

+0.39 (+2.15%)

USD 2.76B
VIAV Viavi Solutions Inc

+0.04 (+0.50%)

USD 2.16B
VSAT ViaSat Inc

+0.68 (+4.44%)

USD 2.15B
ASTSW AST SpaceMobile Inc

+0.03 (+8.57%)

USD 1.76B
EXTR Extreme Networks Inc

+0.27 (+2.38%)

USD 1.50B

ETFs Containing ERIC

XMET:AU BetaShares Energy Transit.. 4.69 % 0.00 %

+0.15 (+0.78%)

N/A
IDGT iShares Trust - iShares U.. 4.64 % 0.00 %

+0.53 (+0.78%)

USD 0.05B
D6AT:XETRA Global X Disruptive Mater.. 4.21 % 0.00 %

+0.40 (+0.78%)

USD 2.18M
EUR.A:CA 3.84 % 1.77 %

N/A

N/A
GMTL:AU Global X Green Metal Mine.. 3.51 % 0.00 %

+0.16 (+0.78%)

N/A
FWDI 0.00 % 1.25 %

N/A

N/A
FOUR:CA Horizons Industry 4.0 Ind.. 0.00 % 0.74 %

N/A

CAD 5.70M
FSEU:LSE iShares Edge MSCI Europe .. 0.00 % 0.00 %

+11.10 (+0.78%)

USD 0.20B
IFSD:LSE iShares Edge MSCI Europe .. 0.00 % 0.00 %

+0.12 (+0.78%)

USD 0.20B
OMXS:LSE iShares OMX Stockholm Cap.. 0.00 % 0.00 %

+8.50 (+0.78%)

USD 1.31B
XDN0:LSE db x-trackers MSCI Nordic.. 0.00 % 0.00 %

+70.75 (+0.78%)

USD 1.04B
EXV6:F iShares STOXX Europe 600 .. 0.00 % 0.00 %

N/A

USD 0.43B
EXV6:XETRA iShares STOXX Europe 600 .. 0.00 % 0.00 %

+0.89 (+0.78%)

USD 0.37B

Market Performance

  Market Performance vs. Industry/Classification (Communication Equipment) Market Performance vs. Exchange (Nasdaq Global Select)
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -12.54% 47% F 28% F
Dividend Return N/A N/A N/A N/A N/A
Total Return -12.54% 47% F 27% F
Trailing 12 Months  
Capital Gain -1.08% 72% C 47% F
Dividend Return 4.61% 83% B 70% C-
Total Return 3.53% 74% C 50% F
Trailing 5 Years  
Capital Gain -39.98% 45% F 30% F
Dividend Return 9.03% 33% F 36% F
Total Return -30.95% 48% F 31% F
Average Annual (5 Year Horizon)  
Capital Gain -6.03% 42% F 32% F
Dividend Return -3.94% 47% F 34% F
Total Return 2.09% 33% F 51% F
Risk Return Profile  
Volatility (Standard Deviation) 34.09% 79% B- 54% F
Risk Adjusted Return -11.55% 44% F 35% F
Market Capitalization 17.25B 98% N/A 96% N/A

Key Financial Ratios

  Ratio vs. Industry/Classification (Communication Equipment) Ratio vs. Market (Nasdaq Global Select)
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 13.80 68% 60%
Price/Book Ratio 1.94 47% 49%
Price / Cash Flow Ratio 2.54 38% 42%
Price/Free Cash Flow Ratio -2.12 67% 67%
Management Effectiveness  
Return on Equity -22.63% 38% 44%
Return on Invested Capital 9.67% 83% 78%
Return on Assets 3.63% 83% 81%
Debt to Equity Ratio 29.61% 50% 51%

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:
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.

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.

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.

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.

Positive cash flow

The company had positive total 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.

Highly 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.

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.

Overpriced compared to book value

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

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.

Below median total returns

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

Negative free cash flow

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

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.