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Telefonaktiebolaget L M Ericsson ADR Class B ERIC Stock Quote

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Last close prices updated as of Feb 03, 2023, 7:54 PM EST | USD | BATS BZX Real-Time Price
  • Last Close 5.91
  • Sector Technology
  • Industry Communication Equipment
  • Investment Style Large Value
  • Day Range 5.88  –  5.99
  • Year Range 5.16  –  12.78
  • Market Cap 19.6803 Bil
  • Volume / Avg 17.7 Mil /  9.6 Mil
  • Price / Sales 0.75
  • Price / Book 1.52
  • Forward Div Yield 4.46%
  • Trailing Div Yield 4.17%

Morningstar‘s Stock Analysis ERIC

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Ericsson Sees Its Expected 2023 Weakness as Temporary, but Firm’s Long-Term Enthusiasm Seems Extreme

Matthew Dolgin Equity Analyst

Analyst Note

| Matthew Dolgin |

Meager sales growth and margin pressure plagued Ericsson’s fourth quarter, and management cited several items it expects to weigh on 2023 results. The firm maintains that these challenges are transitory and that performance will pick up substantially by 2024. While 2023 may prove worse than a typical year, we’re unconvinced that Ericsson’s future growth will look any different from the recent past. Nothing in the quarter changes our low-growth long-term outlook. That said, we believe the company will remain a key player as 5G networks are built out across the globe, so the stock looks overly punished relative to our unchanged SEK 100 fair value estimate.

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Key Statistics ERIC

Company Profile ERIC

Business Description

Ericsson provides telecom equipment and services that are primarily used to build and facilitate mobile networks. Its 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. Ericsson's three major operating segments are networks, cloud and software services, and enterprise.

Torshamnsgatan 21, Kista
Stockholm, SE-164 83, SWE
Industry Communication Equipment
Employees 105,529

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FAQs for Telefonaktiebolaget L M Ericsson ADR Class B Stock

Yes. ERIC has a forward dividend yield of 4.46%. See ERIC’s full dividends and stock split history on the Dividend tab.
Dividend yield allows investors, particularly those interested in dividend-paying stocks, to compare the relationship between a stock’s price and how it rewards stockholders through dividends. The formula for calculating dividend yield is to divide the annual dividend paid per share by the stock price.

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ERIC’s market cap is 19.68 Bil.
Market capitalization is calculated by taking a company’s share price and multiplying it by the total number of shares. It’s often used to measure a company’s size. In the Morningstar Style Box, large-cap names account for the largest 70% of U.S. stocks, mid-cap names account for the largest 70–90%, and small-cap names are the remaining 10% of companies.

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ERIC’s stock style is Large Value.
Style is an investment factor that has a meaningful impact on investment risk and returns. Style is calculated by combining value and growth scores, which are first individually calculated.

High-growth stocks tend to represent the technology, healthcare, and communications sectors. They rarely distribute dividends to shareholders, opting for reinvestment in their businesses. More value-oriented stocks tend to represent financial services, utilities, and energy stocks. These are established companies that reliably pay dividends.

Learn more about style.

ERIC’s price/sales is 0.75.
Price/sales represents the amount an investor is willing to pay for a dollar generated from a particular company’s sales or revenues.

ERIC’s price/forward earnings is 9.77.
Forward P/E gives some indication of how cheap or expensive a stock is compared with consensus earnings estimates. The lower the Forward P/E, the cheaper the stock.

ERIC’s price/book is 1.52.
Price/book ratio can tell investors approximately how much they’re paying for a company’s assets, based on historical, rather than current, valuations. Historical valuations generally do not reflect a company’s current market value. Value investors frequently look for companies that have low price/book ratios.

See ERIC’s valuation ratios compared to the Market Index.

ERIC’s beta can be found in Trading Information at the top of this page.
A stock’s beta measures how closely tied its price movements have been to the performance of the overall market.

Compare ERIC’s historical performance against its industry peers and the overall market.