Skip to Content
Morningstar

Telefonaktiebolaget L M Ericsson ADR ERIC

Morningstar Rating
Unlock
Stock XNAS Rating as of
$5.06 +0.13 (2.64%)
View Full Chart
As of Delayed Price Post-Trading: $5.06 0.00
Unlock our analysis with Morningstar Investor
Start Free Trial

Company Report

View Archive

Ericsson Earnings: Revenue Remains Terrible but There Are Some Signs of Improvement

Matthew Dolgin

Ericsson's steep revenue declines continued during the first quarter, which we attribute to the ongoing pullback in mobile carrier spending globally rather than company-specific challenges. However, margins were generally good, cash flow was strong, and North America appears to be stabilizing. We don't believe the global market for mobile network equipment will continue shrinking, which makes Ericsson's stock much too beaten up in our view, as we are maintaining our SEK 92 fair value estimate.

Read Full Report

Price vs Fair Value

View History
ERIC is trading at a 41% discount.
Price
$4.93
Fair Value
$1.10
Uncertainty
Medium
1-Star Price
$75.86
5-Star Price
$1.72
Economic Moat
Rqz
Capital Allocation
Pnvbqdfs

Bulls Say, Bears Say

Bulls

Early success and market share gains at the onset of 5G network rollouts will build on itself and lock Ericsson in as a preferred vendor for many wireless firms throughout the 5G cycle.

Bears

The customer base remains concentrated with wireless carriers, who typically use multiple vendors and have significant buying power, limiting Ericsson’s pricing power.

Show More
Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if ERIC is a good fit for your portfolio.
Get 7 Days Free

News

View All

Trading Information

Previous Close Price
$4.93
Day Range
$4.96–5.11
52-Week Range
$4.33–6.36
Bid/Ask
$5.01 / $5.07
Market Cap
$16.86 Bil
Volume/Avg
29.6 Mil / 17.5 Mil

Key Statistics

Price/Earnings (Normalized)
12.88
Price/Sales
0.69
Dividend Yield (Trailing)
5.07%
Dividend Yield (Forward)
5.07%
Total Yield
5.07%

Company Profile

Ericsson provides telecom equipment and services that are primarily used to build and facilitate mobile networks through operations in three segments: networks, cloud and software services, and enterprises. The firm's customers have historically been primarily wireless carriers, but the firm is making a push to cater more to other enterprises as well, both as they try to take advantage of 5G capabilities and on other “as-a-service” communications platforms. The company also licenses its patents to handset manufacturers so their devices are compatible with wireless networks.
Sector
Technology
Industry
Communication Equipment
Stock Style Box
Large Core
Total Number of Employees
99,952
Website
https://www.ericsson.com

Competitors

Valuation

View More
Metric
ERIC
CSCO
Price/Earnings (Normalized)
 12.8811.59
Price/Book Value
 1.614.18
Price/Sales
 0.693.41
Price/Cash Flow
 9.9112.10
Price/Earnings
ERIC
CSCO

Financial Strength

Metric
ERIC
CSCO
Quick Ratio
 0.941.10
Current Ratio
 1.221.37
Interest Coverage
 −5.8333.76
Quick Ratio
ERIC
CSCO

Profitability

Metric
ERIC
CSCO
Return on Assets (Normalized)
 2.26%17.02%
Return on Equity (Normalized)
 6.25%38.38%
Return on Invested Capital (Normalized)
 5.18%30.59%
Return on Assets
ERIC
CSCO
See how this stock stacks up to its competitors with Morningstar Investor
Start Free Trial

Communication Equipment Industry Comparables

Screen in Investor
Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
CSCO
Cisco Systems IncCcmtwbwhgVqf$193.5 Bil
MSI
Motorola Solutions IncVxwvvlgdvvNyyf$56.7 Bil
HPE
Hewlett Packard Enterprise CoZnzygnvyvTsq$22.3 Bil
NOKBF
Nokia Oyj—Dmvx$18.5 Bil
NOK
Nokia Oyj ADRTrrzpbxkbBphp$18.5 Bil
ZTCOF
ZTE Corp Class H—Vbhd$17.7 Bil
ERIXF
Telefonaktiebolaget L M Ericsson Class BBLXblw$16.7 Bil
ZBRA
Zebra Technologies Corp Class AKgqjrdcnVllycn$14.2 Bil
SATS
EchoStar Corp Class APbscjSyvts$3.8 Bil

Sponsor Center