Telefonaktiebolaget LM Ericsson Class B (SE:ERIC.B)
:ERIC.B
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Telefonaktiebolaget LM Ericsson Class B
(ERIC.B)
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Rating:75Outperform
Price Target:
kr122.00
▲(15.42% Upside)
Action:ReiteratedDate:04/21/26
The score is driven primarily by improved financial performance (stronger margins/ROE and robust free cash flow with easing leverage), supported by a constructive long-term price trend and a reasonable valuation (low P/E). The main risk tempering the score is the continued revenue contraction and prior volatility across the cycle.
Positive Factors
Improved Profitability & Returns
Margins and ROE have meaningfully rebounded, reflecting structurally stronger profitability and operational leverage. Sustained higher margins improve cash flow generation, fund R&D and software/service investments, and provide buffer versus cyclical hardware revenues over the coming 2–6 months.
Negative Factors
Multi-year Revenue Decline
Persistent top-line contraction signals structural demand or share loss in core network equipment markets. Even with better margins, declining revenue limits absolute profit growth, scale benefits, and long-term market positioning if trends continue over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Profitability & Returns
Margins and ROE have meaningfully rebounded, reflecting structurally stronger profitability and operational leverage. Sustained higher margins improve cash flow generation, fund R&D and software/service investments, and provide buffer versus cyclical hardware revenues over the coming 2–6 months.
Read all positive factors
Telefonaktiebolaget LM Ericsson Class B (ERIC.B) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr361.23B
Dividend Yield3.18%
Average Volume (3M)7.07M
Price to Earnings (P/E)99.7
Beta (1Y)0.63
Revenue Growth-7.45%
EPS Growth1465.25%
CountrySE
Employees92,866
SectorGeneral
Sector StrengthN/A
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.27
Shares Outstanding3,109,595,700
10 Day Avg. Volume10,617,979
30 Day Avg. Volume7,068,121
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)2.76
Price to Sales (P/S)1.28
P/FCF Ratio9.96
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
kr99.50Price Target Upside-5.87% Downside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)5.73
Revenue Forecast (FY)kr227.17B
Telefonaktiebolaget LM Ericsson Class B Business Overview & Revenue Model
Company Description
Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides communication infrastructure, services, and software solutions to the telecom and other sectors. It operates through four segments: Networks, Digital Services, Manage...
How the Company Makes Money
Ericsson primarily makes money by selling telecommunications network equipment, software, and services to mobile network operators and other communications service providers. A major revenue stream comes from its Networks business, where it suppli...
Telefonaktiebolaget LM Ericsson Class B Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 230.99B | 236.68B | 247.88B | 263.35B | 271.55B | 232.31B |
| Gross Profit | 110.98B | 113.94B | 109.36B | 104.40B | 113.30B | 100.75B |
| EBITDA | 47.11B | 48.75B | 16.16B | -9.96B | 35.10B | 38.37B |
| Net Income | 25.17B | 28.43B | 20.00M | -26.45B | 18.72B | 22.69B |
Balance Sheet | ||||||
| Total Assets | 290.39B | 279.22B | 292.37B | 310.14B | 349.54B | 305.61B |
| Cash, Cash Equivalents and Short-Term Investments | 63.09B | 56.64B | 60.76B | 44.77B | 47.09B | 66.98B |
| Total Debt | 39.29B | 46.04B | 45.54B | 54.33B | 42.23B | 41.13B |
| Total Liabilities | 187.26B | 168.96B | 199.39B | 212.73B | 216.23B | 198.51B |
| Stockholders Equity | 102.44B | 109.53B | 94.28B | 98.67B | 134.81B | 108.78B |
Cash Flow | ||||||
| Free Cash Flow | 33.29B | 30.32B | 42.62B | 1.71B | 24.67B | 34.44B |
| Operating Cash Flow | 35.82B | 32.95B | 46.26B | 7.18B | 30.86B | 39.06B |
| Investing Cash Flow | -11.29B | -11.44B | -15.95B | -8.71B | -34.40B | -19.88B |
| Financing Cash Flow | -15.82B | -14.22B | -23.86B | 1.01B | -15.93B | -9.31B |
Telefonaktiebolaget LM Ericsson Class B Technical Analysis
Neutral
105.70
Price Trends
103.91
Positive
96.72
Positive
87.26
Positive
Market Momentum
1.53
Positive
46.97
Neutral
40.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ERIC.B, the sentiment is Neutral. The current price of 105.7 is below the 20-day moving average (MA) of 107.65, above the 50-day MA of 103.91, and above the 200-day MA of 87.26, indicating a neutral trend. The MACD of 1.53 indicates Positive momentum. The RSI at 46.97 is Neutral, neither overbought nor oversold. The STOCH value of 40.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:ERIC.B.
Telefonaktiebolaget LM Ericsson Class B Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | kr361.23B | 99.75 | 26.04% | 3.18% | -7.45% | 1465.25% | |
75 Outperform | kr12.28B | 55.69 | 21.88% | 0.87% | -3.86% | -29.56% | |
74 Outperform | kr4.08B | 20.62 | 9.68% | 1.11% | 3.60% | 1.26% | |
72 Outperform | kr27.04B | 32.56 | 12.76% | ― | 9.75% | 50.49% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | kr1.11B | -176.87 | -1.21% | ― | -14.28% | -110.68% | |
50 Neutral | kr7.82B | -21.15 | 3.38% | ― | 3.05% | -102.13% |
* General Sector Average
SE:ERIC.B
Telefonaktiebolaget LM Ericsson Class B
108.35
30.02
38.32%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.