Telefonaktiebolaget L M Ericsson ADR ERIC

Morningstar Rating
$10.15 −0.01 (0.10%)
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Company Report

Price vs Fair Value

ERIC is trading at a LOCK|Hm#SK^x premium.
Price
$10.15
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Ericsson retains a dominant position in the US, which is the most profitable market for wireless networking equipment providers.

Bears

Carriers continue to try to commoditize portions of Ericsson’s product offerings. The latest attempt, ORAN, threatens to disaggregate software and hardware, making it easier for carriers to play vendors off each other.

News

Trading Information

Previous Close Price
$10.16
Day Range
$10.0910.28
52-Week Range
$7.4713.77
Bid/Ask
$10.00 / $10.14
Shares Outstanding
3.28B
Market Cap
$33.29B
Volume/Avg
5M / 12M

Key Statistics

Price/Earnings (Normalized)
10.43
Price/Sales
1.39
Dividend Yield (Trailing)
3.08%
Dividend Yield (Forward)
3.08%
Total Yield
3.08%

Company Profile

Ericsson is a networking equipment and software provider, primarily selling mobile networking equipment and services to wireless service providers. Ericsson operates in three segments: networks, cloud software and services, and enterprise. While large wireless carriers are its largest customers, Ericsson has expanded its offerings for large enterprises. These products and services include private 5G networking, contact centers as a service, and application performance interfaces. Ericsson aims to combine its 5G network expertise with cloud-native, as-a-service platforms offering a more comprehensive hardware and software package. Ericsson also monetizes its research and development investments by licensing patents to handset manufacturers.
Sector
Technology
Industry
Communication Equipment
Stock Style Box
Large Value
Total Number of Employees
86,536

Competitors

Valuation

Metric
ERIC
CSCO
NOK
Price/Earnings (Normalized)
10.4329.7023.59
Price/Book Value
3.139.792.16
Price/Sales
1.397.972.24
Price/Cash Flow
11.8828.1118.00
Price/Earnings
ERIC
CSCO
NOK

Financial Strength

Metric
ERIC
CSCO
NOK
Quick Ratio
0.890.661.22
Current Ratio
1.120.921.51
Interest Coverage
14.5210.01
Quick Ratio
ERIC
CSCO
NOK

Profitability

Metric
ERIC
CSCO
NOK
Return on Assets (Normalized)
9.02%13.34%5.24%
Return on Equity (Normalized)
25.16%34.57%9.41%
Return on Invested Capital (Normalized)
17.74%21.97%6.78%
Return on Assets
ERIC
CSCO
NOK

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