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

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SE:ERIC.B

Telefonaktiebolaget LM Ericsson Class B

(LSE:ERIC.B)

Rating:63Neutral
Price Target:
kr77.00
▲(7.69%Upside)
Telefonaktiebolaget LM Ericsson Class B's stock score is primarily influenced by its stable financial performance, showcasing strong cash flows and prudent balance sheet management. However, negative technical indicators reflect bearish market sentiment, dragging down the overall score. The stock's valuation is neutral, offering a reasonable P/E ratio and a modest dividend yield. The absence of earnings call and corporate events data limits further analysis.

Telefonaktiebolaget LM Ericsson Class B (ERIC.B) vs. iShares MSCI Sweden ETF (EWD)

Telefonaktiebolaget LM Ericsson Class B Business Overview & Revenue Model

Company DescriptionTelefonaktiebolaget 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, Managed Services, and Emerging Business and Other. The Networks segment offers radio access network solutions for various network spectrum bands, including integrated high-performing hardware and software. This segment also provides integrated antenna and transport solutions; and a range of service portfolio covering network deployment and support. The Digital Services segment offers software-based solutions for business support systems, operational support systems, communication services, core networks, and cloud infrastructure. The Managed Services segment provides networks and IT managed, network design and optimization, and application development and maintenance services to telecom operators. The Emerging Business and Other segment includes emerging businesses comprising Internet of Things; iconectiv; Cradlepoint that offers wireless edge WAN 4G and 5G enterprise solutions; and Red Bee Media, MediaKind, and other new businesses. It operates in North America, Europe and Latin America, the Middle East and Africa, South East Asia, Oceania, India, North East Asia, and internationally. Telefonaktiebolaget LM Ericsson (publ) was founded in 1876 and is headquartered in Stockholm, Sweden.
How the Company Makes MoneyEricsson generates revenue through several key streams: network infrastructure, digital services, managed services, and emerging business areas. The network infrastructure segment, which includes products for mobile networks such as radio access and transport solutions, is the largest contributor to the company’s earnings. Digital services revenue comes from offerings like BSS (Business Support Systems), OSS (Operational Support Systems), cloud and core networks, providing solutions that help telecom operators manage their networks and services. Managed services involve outsourcing network operations and optimization to Ericsson, generating revenue through long-term contracts with operators to maintain and improve their networks' performance. Additionally, Ericsson invests in emerging technologies such as 5G and IoT, which are expected to drive future growth. Strategic partnerships with telecom operators and enterprises further bolster Ericsson's revenue by expanding its global reach and customer base.

Telefonaktiebolaget LM Ericsson Class B Financial Statement Overview

Summary
Overall, Telefonaktiebolaget LM Ericsson Class B presents a stable financial picture with strong cash flow generation and a solid balance sheet. The income statement shows areas for improvement, particularly in revenue growth and net profit margins. However, the company's effective cash flow management and prudent leverage position it well within the industry, allowing for potential growth and resilience against market fluctuations.
Income Statement
70
Positive
The income statement shows a mixed performance. The TTM data reflects a gross profit margin of 46.52%, showing good profitability. However, the net profit margin is 7.04%, indicating modest profitability relative to revenue. Revenue has been declining, with a noticeable drop from the previous year, impacting overall growth trends. The EBIT margin for TTM is strong at 11.46%, yet EBITDA margin is lower at 9.51%, reflecting potential inefficiencies or increased costs.
Balance Sheet
75
Positive
The balance sheet reflects stable financial health with a debt-to-equity ratio of 0.50, indicating moderate leverage. The return on equity (ROE) is 19.95%, which is strong and suggests efficient use of equity. The equity ratio is 32.07%, demonstrating a solid capital structure. Overall, the balance sheet shows a well-managed financial position with a good balance between debt and equity.
Cash Flow
80
Positive
Cash flow analysis shows robust cash generation with a free cash flow of SEK 37.03 billion in the TTM period. The operating cash flow to net income ratio is high at 2.34, indicating strong cash conversion from profits. Free cash flow to net income ratio is also healthy at 2.14, reflecting efficient cash flow management. Despite past fluctuations, current cash flows are strong and support the company's financial stability.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue247.88B263.35B271.55B232.31B232.39B
Gross Profit109.36B104.40B113.30B100.75B93.72B
EBITDA16.16B-9.96B35.10B38.37B36.80B
Net Income20.00M-26.45B18.72B22.69B17.48B
Balance Sheet
Total Assets292.37B310.14B349.54B305.61B271.53B
Cash, Cash Equivalents and Short-Term Investments60.76B44.77B47.09B66.98B50.43B
Total Debt45.54B54.33B42.23B41.13B39.46B
Total Liabilities199.39B212.73B216.23B198.51B186.35B
Stockholders Equity94.28B98.67B134.81B108.78B86.67B
Cash Flow
Free Cash Flow42.62B1.71B24.67B34.44B23.62B
Operating Cash Flow46.26B7.18B30.86B39.06B28.93B
Investing Cash Flow-15.95B-8.71B-34.40B-19.88B-15.20B
Financing Cash Flow-23.86B1.01B-15.93B-9.31B-12.49B

Telefonaktiebolaget LM Ericsson Class B Technical Analysis

Technical Analysis Sentiment
Negative
Last Price71.50
Price Trends
50DMA
79.65
Negative
100DMA
79.66
Negative
200DMA
83.37
Negative
Market Momentum
MACD
-2.49
Positive
RSI
26.87
Positive
STOCH
25.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ERIC.B, the sentiment is Negative. The current price of 71.5 is below the 20-day moving average (MA) of 76.16, below the 50-day MA of 79.65, and below the 200-day MA of 83.37, indicating a bearish trend. The MACD of -2.49 indicates Positive momentum. The RSI at 26.87 is Positive, neither overbought nor oversold. The STOCH value of 25.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:ERIC.B.

Telefonaktiebolaget LM Ericsson Class B Peers Comparison

Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
kr240.26B13.7720.29%3.89%-1.47%
50
Neutral
C$3.13B2.46-63.57%2.58%4.49%-6.00%
kr302.80B27.839.27%0.02%
kr3.89B27.879.07%1.04%
€395.06M12.509.42%
€46.39M1,870.00-6.07%1.32%
€126.30M1,695.000.15%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:ERIC.B
Telefonaktiebolaget LM Ericsson Class B
71.50
0.63
0.88%
GB:0GRX
Hexagon AB
111.90
5.64
5.31%
GB:0GT8
Beijer Electronics Group AB
121.00
7.93
7.01%
DE:02H0
Hexatronic Group AB
1.93
-3.53
-64.65%
DE:96W
Maven Wireless Sweden AB
0.88
-0.18
-16.98%
DE:NSGB
Net Insight AB Class B
0.34
-0.21
-38.18%
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.Date of analysis: Jul 18, 2025