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Telefonaktiebolaget L M Ericsson ADR ERIC

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Stock XNAS Rating as of
$12.09 +0.50 (4.27%)
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As of Cboe BZX Real-Time Price Open

Company Report

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Strong Position in US Mobile Networking Allows Ericsson Time to Diversify Revenue

Martin Szumski

Ericsson operates globally but primarily competes in Western-aligned markets where government restrictions have excluded Chinese competitors. Per Omdia, Ericsson’s global market share excluding China was 36% in 2024, leading Nokia and Huawei. By maintaining leading market share, Ericsson gains operating leverage on the massive research and development required to develop new technology and contribute to each successive generation of wireless standards.

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Price vs Fair Value

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ERIC is trading at a 600% premium.
Price
$11.60
Fair Value
$64.80
Uncertainty
Medium
1-Star Price
$93.12
5-Star Price
$3.97
Economic Moat
Nljfn
Capital Allocation
Rkdymrht

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.

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News

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Trading Information

Previous Close Price
$11.60
Day Range
$11.74–12.09
52-Week Range
$7.16–13.77
Bid/Ask
$12.09 / $12.10
Shares Outstanding
3.32B
Market Cap
$40.00B
Volume/Avg
8M / 10M

Key Statistics

Price/Earnings (Normalized)
12.08
Price/Sales
1.62
Dividend Yield (Trailing)
2.64%
Dividend Yield (Forward)
2.64%
Total Yield
2.70%

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 Core
Total Number of Employees
88,826
Website
https://www.ericsson.com

Competitors

Valuation

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Metric
ERIC
CSCO
NOK
Price/Earnings (Normalized)
 12.0829.4438.51
Price/Book Value
 3.709.713.19
Price/Sales
 1.627.903.34
Price/Cash Flow
 13.7827.8628.04
Price/Earnings
ERIC
CSCO
NOK

Financial Strength

Metric
ERIC
CSCO
NOK
Quick Ratio
 0.930.661.32
Current Ratio
 1.120.921.57
Interest Coverage
 13.5210.01—
Quick Ratio
ERIC
CSCO
NOK

Profitability

Metric
ERIC
CSCO
NOK
Return on Assets (Normalized)
 9.04%13.34%2.07%
Return on Equity (Normalized)
 25.99%34.57%3.77%
Return on Invested Capital (Normalized)
 18.32%21.97%2.23%
Return on Assets
ERIC
CSCO
NOK

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