Telefonaktiebolaget LM Ericsson Class B (ERIC.B) AI Stock Analysis

• Market Cap: kr369.89B
• Dividend Yield: 3.18%
• Average Volume (3M): 7.07M
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.66
• Revenue Growth: -2.65%
• EPS Growth: N/A
• Country: SE
• Employees: 92,866
• Sector: General
• Sector Strength: N/A
• Industry: Communication Equipment
• EPS (TTM): 2.57
• Shares Outstanding: 3,109,595,700
• 10 Day Avg. Volume: 10,617,979
• 30 Day Avg. Volume: 7,068,121
• PEG Ratio: <0.01
• Price to Book (P/B): 2.76
• Price to Sales (P/S): 1.28
• P/FCF Ratio: 9.96
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: kr91.63
• Price Target Upside: -17.41% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): 6.23
• Revenue Forecast (FY): kr231.45B

• Rating: 71 Outperform
• Price Target: kr120.00 ▲(8.16% Upside)
• Action: Upgraded Date: 01/29/26
• Date: Action: Upgraded 01/29/26

The score is driven primarily by improving financial performance (earnings rebound, acceptable leverage, and positive free cash flow), tempered by a persistent multi-year revenue decline and volatility in recent profitability/cash flow. Technicals are supportive with a clear uptrend and positive momentum, while valuation looks attractive with a modest P/E and a solid dividend yield.

Positive Factors

Market-leading 4G/5G network franchise

Ericsson's entrenched RAN, core software and services offering to global operators creates durable revenue streams from multi‑year deployments, subscriptions and managed services. This integrated product/service mix supports long‑term market participation as carriers upgrade and expand networks.

Negative Factors

Multi-year revenue decline

Three consecutive years of declining revenue indicate structural demand weakness or competitive share loss in core network markets. Persistent top‑line contraction limits operating leverage, hampers sustainable margin expansion, and increases reliance on margin or service mix improvements to sustain profits.

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...

Read more

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...

Read more

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

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	236.68B	247.88B	263.35B	271.55B	232.31B
Gross Profit	113.94B	109.36B	104.40B	113.30B	100.75B
EBITDA	48.75B	16.16B	-9.96B	35.10B	38.37B
Net Income	28.43B	20.00M	-26.45B	18.72B	22.69B
Balance Sheet
Total Assets	279.22B	292.37B	310.14B	349.54B	305.61B
Cash, Cash Equivalents and Short-Term Investments	56.64B	60.76B	44.77B	47.09B	66.98B
Total Debt	46.04B	45.54B	54.33B	42.23B	41.13B
Total Liabilities	168.96B	199.39B	212.73B	216.23B	198.51B
Stockholders Equity	109.53B	94.28B	98.67B	134.81B	108.78B
Cash Flow
Free Cash Flow	30.32B	42.62B	1.71B	24.67B	34.44B
Operating Cash Flow	32.95B	46.26B	7.18B	30.86B	39.06B
Investing Cash Flow	-11.44B	-15.95B	-8.71B	-34.40B	-19.88B
Financing Cash Flow	-14.22B	-23.86B	1.01B	-15.93B	-9.31B

Telefonaktiebolaget LM Ericsson Class B Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 110.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ERIC.B, the sentiment is Positive. The current price of 110.95 is above the 20-day moving average (MA) of 106.73, above the 50-day MA of 102.10, and above the 200-day MA of 86.14, indicating a bullish trend. The MACD of 1.98 indicates Negative momentum. The RSI at 64.94 is Neutral, neither overbought nor oversold. The STOCH value of 76.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:ERIC.B.

Telefonaktiebolaget LM Ericsson Class B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IVSO	75 Outperform	kr12.56B	55.69	21.88%	0.87%	5.69%	4.82%
ERIC.B	71 Outperform	kr369.89B	10.63	26.04%	3.18%	-2.65%	―
HMS	67 Neutral	kr22.79B	48.34	12.76%	―	13.97%	20.46%
EPEN	60 Neutral	kr3.05B	24.74	9.68%	1.11%	-1.85%	-16.44%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
HTRO	50 Neutral	kr6.99B	-338.28	3.38%	―	0.01%	-71.63%
NETI.B	47 Neutral	kr782.10M	-176.87	-1.21%	―	-15.56%	-92.87%