Obermatt

Ericsson

STO:ERIC B · SE0000108656
Communications EquipmentX-Large

360

58
EV / EBIT75
Price / Owner Earnings59
Owner Earnings Yield92
Dividend Yield81
Price/Sales43
EV / Gross Profit72
Price/Book34
Return on Capital87
Cash Return on Capital90
Return on Equity88
EBIT Margin87
Gross Profitability75
Cash Conversion44
Accruals37
Owner Earnings Margin74
Sales growth8
Profit Growth96
Long-Term EPS Growth4
Owner Earnings Growth71
Reinvestment60
Price momentum69
Debt load55
Refinancing17
Debt Payback100
Liquidity86
Analyst ratings5
Opinion Changes35
Price Target Upside12
Market mood32
Value Creation16/20strong value creator
  • Creates more value than its capital costs
  • Owner earnings growing
  • Owner earnings per share growing
  • Reinvests at strong returns
  • Solid earnings base

What this means

Ericsson generates returns well above its cost of capital, the foundation of durable shareholder value.

Profile

CountrySweden
IndustryCommunications Equipment
SizeX-Large
TypePublic Company
ExchangeOM
Founded1918
Employees90,102
ISINSE0000108656
Last UpdateApr 2, 2026
Themes
Cloud ManagementVoIPStreaming MediaEnterprise Voip and TelephonyNetwork BackboneCloud Infrastructure5GOptical InfrastructureInformation TechnologyInternetMobileTelecommunications

Description

Telefonaktiebolaget LM Ericsson (publ) provides mobile connectivity solutions to communications service providers, enterprises, and the public sector. The company’s portfolio spans the following segments: Networks, Cloud Software and Services, and E…

Analysis

Hidden champion

Telefonaktiebolaget LM Ericsson (publ) is what we call a hidden champion: a strong business that the market is not pricing as one. One caution: reported profits have recently run ahead of actual cash, which we track closely.

The price is attractive. You pay 13.7× its owner earnings: the cash an owner could take out each year, which is in the historically attractive zone. At today's price, the market is assuming roughly 1% yearly growth; analysts expect -4%. The gap between price and consensus is worth watching: demanding expectations.

The trajectory is tepid and the balance sheet is adequate. The company scores 16/20 on our value-creation score: strong value creator. Analyst sentiment is cautious.

What to watch: Reported profits have run ahead of actual cash for several periods. As always: this describes the company's numbers; it is not a recommendation.

360° rank · history

1007550250
38
2023202420252026

All-time high

83

Nov 2024

All-time low

11

Aug 2023

Average rank

55

across all years

Detailed & Historical Ranks

Deep dive into 15 detailed ranks and 3 years of history.

Current202520242023
Price/Sales
43
53
70
73
Price/Earnings
58
76
83
83
Price/Book
34
33
47
60
Dividend Yield
81
87
89
94
Value (overall)
58
84
76
94

Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.

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Make Sense of the Ranks

Every rank runs 1–100 against true peers. Higher is always better.

360° View
1 · Watch OutGood· 100
Value
1 · ExpensiveGood Value· 100
Quality
1 · Weak FundamentalsHigh Quality· 100
Growth
1 · Tough TimesHigh Growth· 100
Safety
1 · High LeverageWell-Financed· 100
Sentiment
1 · SkepticismPositive· 100
Learn More →