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Telefonaktiebolaget LM Ericsson Class B
(ERIC.B)
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Rating:68Neutral
Price Target:
kr107.00
▲(1.23% Upside)
Action:Reiterated
Date:07/15/26
The score is primarily supported by improved profitability and a healthier leverage profile, along with reasonable valuation (P/E ~13 and ~3% dividend yield). These positives are tempered by weak technicals (price below major moving averages and negative MACD) and fundamental momentum concerns from ongoing revenue decline and year-over-year free cash flow contraction.
Positive Factors
Margin Recovery
Sustained high gross and operating margins indicate the business retains pricing power and cost efficiency in its core RAN and software offerings. Higher margins improve cash generation and allow reinvestment into product R&D and services, supporting durable profitability if top-line stabilizes.
Negative Factors
Top-line Decline
A multi-year declining revenue trend undermines the durability of margin improvements and constrains organic growth options. Persistent top-line pressure forces reliance on cost efficiencies and share gains, making long-term earnings resilience contingent on reversing demand declines in core operator markets.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Recovery
Sustained high gross and operating margins indicate the business retains pricing power and cost efficiency in its core RAN and software offerings. Higher margins improve cash generation and allow reinvestment into product R&D and services, supporting durable profitability if top-line stabilizes.
Read all positive factors
Telefonaktiebolaget LM Ericsson Class B (ERIC.B) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr317.67B
Dividend Yield3.07%
Average Volume (3M)7.07M
Price to Earnings (P/E)12.9
Beta (1Y)0.56
Revenue Growth-7.45%
EPS Growth42.49%
CountrySE
Employees87,521
SectorGeneral
Sector StrengthN/A
IndustryCommunication Equipment
Share Statistics
EPS (TTM)7.41
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
kr102.50Price Target Upside-3.03% Downside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)5.44
Revenue Forecast (FY)kr226.14B
Telefonaktiebolaget LM Ericsson Class B Business Overview & Revenue Model
Company Description
Telefonaktiebolaget LM Ericsson (publ), often referred to as Ericsson, is a Swedish company that delivers telecommunications infrastructure, services, and software solutions worldwide to telecom operators and various other sectors. Its business op...
How the Company Makes Money
Ericsson primarily makes money by selling network infrastructure and related software and services to mobile network operators and other telecom customers. A major revenue stream comes from Networks, where Ericsson sells hardware (such as radios, ...
Telefonaktiebolaget LM Ericsson Class B Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 227.55B | 236.68B | 247.88B | 263.35B | 271.55B | 232.31B |
| Gross Profit | 109.51B | 113.94B | 109.36B | 104.40B | 113.30B | 100.75B |
| EBITDA | 46.11B | 48.75B | 16.16B | -9.96B | 35.10B | 38.37B |
| Net Income | 24.65B | 28.43B | 20.00M | -26.45B | 18.72B | 22.69B |
Balance Sheet | ||||||
| Total Assets | 287.90B | 279.22B | 292.37B | 310.14B | 349.54B | 305.61B |
| Cash, Cash Equivalents and Short-Term Investments | 54.10B | 56.64B | 60.76B | 44.77B | 47.09B | 66.98B |
| Total Debt | 39.48B | 40.26B | 45.54B | 54.33B | 42.23B | 41.13B |
| Total Liabilities | 183.13B | 168.96B | 199.39B | 212.73B | 216.23B | 198.51B |
| Stockholders Equity | 104.05B | 109.53B | 94.28B | 98.67B | 134.81B | 108.78B |
Cash Flow | ||||||
| Free Cash Flow | 31.00B | 30.32B | 42.62B | 1.71B | 24.67B | 34.44B |
| Operating Cash Flow | 33.60B | 32.95B | 46.26B | 7.18B | 30.86B | 39.06B |
| Investing Cash Flow | -4.15B | -11.44B | -15.95B | -8.71B | -34.40B | -19.88B |
| Financing Cash Flow | -21.56B | -14.22B | -23.86B | 1.01B | -15.93B | -9.31B |
Telefonaktiebolaget LM Ericsson Class B Technical Analysis
Negative
105.70
Price Trends
113.31
Negative
109.68
Negative
99.61
Negative
Market Momentum
-3.89
Positive
31.09
Neutral
1.73
Positive
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 105.7 is below the 20-day moving average (MA) of 106.11, below the 50-day MA of 113.31, and above the 200-day MA of 99.61, indicating a bearish trend. The MACD of -3.89 indicates Positive momentum. The RSI at 31.09 is Neutral, neither overbought nor oversold. The STOCH value of 1.73 is Positive, 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | kr5.04B | 32.01 | 9.68% | 1.11% | 10.48% | 22.01% | |
68 Neutral | kr317.67B | 12.86 | 26.04% | 3.18% | -7.45% | 42.49% | |
68 Neutral | kr9.96B | 44.65 | 21.88% | 0.87% | 12.36% | -2.60% | |
64 Neutral | kr24.20B | 43.74 | 12.76% | ― | 14.26% | 49.83% | |
56 Neutral | kr10.02B | -1,513.33 | 3.38% | ― | 4.60% | -89.25% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
53 Neutral | kr800.48M | 149.69 | -1.21% | ― | -14.51% | -1025.00% |
* General Sector Average
SE:ERIC.B
Telefonaktiebolaget LM Ericsson Class B
95.26
25.37
36.29%
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SE:NETI.B
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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.