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Telefonaktiebolaget LM Ericsson (ERIC) Stock Analysis

This is a peer-relative look at Telefonaktiebolaget LM Ericsson (ERIC): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Technology Hardware & Equipment peers, so every number reads in context rather than in isolation.

Company Profile

Telefonaktiebolaget LM Ericsson (ERIC) trades as an ADR rather than ordinary local shares — read it with FX exposure, depositary-program fees, and dividend-withholding-tax differences in mind.

Company profile fields for Telefonaktiebolaget LM Ericsson (ERIC)
Profile ItemERIC
NameTelefonaktiebolaget LM Ericsson Sponsored ADR
Country/RegionSweden
GICS SectorInformation Technology
GICS Industry GroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
GICS Sub-IndustryCommunications Equipment
Market Capitalization33.25 billion USD
CurrencyUSD
ExchangeNasdaq
Listing DateAugust 24, 1981
Security TypeADR

Price Performance

Cumulative Growth

ERIC
GSPC
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Telefonaktiebolaget LM Ericsson (ERIC) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Telefonaktiebolaget LM Ericsson (ERIC) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Telefonaktiebolaget LM Ericsson (ERIC) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Telefonaktiebolaget LM Ericsson (ERIC) metric values compared with Technology Hardware & Equipment industry-group medians
MetricCurrent stock: ERICIndustry group median
Total Return (1Y)11.58%19.81%
Total Return (3Y, Annualized)36.47%26.50%
Total Return (5Y, Annualized)2.71%9.52%

Risk Profile

Drawdown History

ERIC
GSPC
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Telefonaktiebolaget LM Ericsson (ERIC) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Telefonaktiebolaget LM Ericsson (ERIC) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Telefonaktiebolaget LM Ericsson (ERIC) metric values compared with Technology Hardware & Equipment industry-group medians
MetricCurrent stock: ERICIndustry group median
Volatility (1Y, Annualized)36.32%55.75%
Beta (5Y)0.961.39
Max Drawdown (5Y)-62.81%-58.83%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. ERIC is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Telefonaktiebolaget LM Ericsson (ERIC) metric values compared with Technology Hardware & Equipment industry-group medians
MetricCurrent stock: ERICIndustry group median
Sharpe Ratio (1Y)0.200.28
Sortino Ratio (1Y)0.290.40

Profitability

ROE (TTM)

Telefonaktiebolaget LM Ericsson (ERIC) posts ROE of 18.09%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

ERIC

Technology Hardware & Equipment industry group

18.09%

Group distribution
Max
42.47%
Q3
19.13%
ERIC
18.09%
Median
11.00%
Q1
1.63%
Min
-20.62%
Largest peers
AAPL
142.26%
SNDK
141.17%
APH
40.08%
ANET
33.52%
CSCO
27.32%
ERIC
18.09%
DELL
--
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Where Telefonaktiebolaget LM Ericsson (ERIC) stands on ROE within its Technology Hardware & Equipment peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Telefonaktiebolaget LM Ericsson (ERIC) keeps 8.36% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.

ERIC

Technology Hardware & Equipment industry group

8.36%

Group distribution
Max
27.60%
Q3
11.66%
ERIC
8.36%
Median
4.08%
Q1
0.00%
Min
-11.02%
Largest peers
SNDK
67.04%
ANET
39.97%
AAPL
27.60%
CSCO
20.95%
APH
17.95%
ERIC
8.36%
DELL
7.53%
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Where Telefonaktiebolaget LM Ericsson (ERIC) stands on net margin within its Technology Hardware & Equipment peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Telefonaktiebolaget LM Ericsson (ERIC) turns 0.00% of revenue into operating profit, in the lower peer quartile for operating margin. Operating costs are taking a larger share of sales than they do at most peers.

ERIC

Technology Hardware & Equipment industry group

0.00%

Group distribution
Max
36.27%
Q3
18.36%
Median
8.84%
Q1
1.46%
ERIC
0.00%
Min
-21.39%
Largest peers
SNDK
79.59%
ANET
44.90%
AAPL
31.13%
APH
29.68%
CSCO
27.72%
DELL
12.02%
ERIC
0.00%
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Where Telefonaktiebolaget LM Ericsson (ERIC) stands on operating margin within its Technology Hardware & Equipment peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Telefonaktiebolaget LM Ericsson (ERIC) metric values compared with Technology Hardware & Equipment industry-group medians
MetricCurrent stock: ERICIndustry group median
ROE (TTM)18.09%11.00%
ROA (TTM)7.07%4.78%
Net Margin (TTM)8.36%4.08%
Operating Margin (TTM)0.00%8.84%
Gross Margin (TTM)48.01%39.87%

Growth

Revenue Growth

Telefonaktiebolaget LM Ericsson (ERIC) grew revenue -4.52%, in the lower peer quartile. The top line is expanding more slowly than at most peers, which can reflect softer demand, lost share, or weaker pricing.

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Telefonaktiebolaget LM Ericsson (ERIC): Revenue Growth across different time periods, set against Technology Hardware & Equipment industry-group medians.

EPS Growth

Telefonaktiebolaget LM Ericsson (ERIC) grew earnings per share 85,000.00%, above the industry benchmark range. Profits are compounding faster than at any typical peer, though a depressed base year can inflate the percentage, so the level of earnings matters alongside the rate.

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Telefonaktiebolaget LM Ericsson (ERIC): EPS Growth across different time periods, set against Technology Hardware & Equipment industry-group medians.

Growth Metrics

Telefonaktiebolaget LM Ericsson (ERIC) metric values compared with Technology Hardware & Equipment industry-group medians
MetricCurrent stock: ERICIndustry group median
Revenue Growth (YoY)-4.52%10.87%
Revenue Growth (3Y CAGR)-4.48%2.79%
EPS Growth (YoY)85,000.00%14.29%
EPS Growth (3Y CAGR)14.83%3.49%

Financial Strength

Current Ratio (MRQ)

Telefonaktiebolaget LM Ericsson (ERIC) has current ratio of 1.16, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

ERIC

Technology Hardware & Equipment industry group

1.16

Group distribution
Max
5.34
Q3
3.02
Median
1.95
Q1
1.32
ERIC
1.16
Min
0.17
Largest peers
ANET
3.29
SNDK
2.58
APH
1.94
ERIC
1.16
AAPL
1.02
DELL
0.96
CSCO
0.93
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Where Telefonaktiebolaget LM Ericsson (ERIC) stands on current ratio within its Technology Hardware & Equipment peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Telefonaktiebolaget LM Ericsson (ERIC) has debt-to-equity ratio of 0.41, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.

ERIC

Technology Hardware & Equipment industry group

0.41

Group distribution
Max
1.76
Q3
0.78
ERIC
0.41
Median
0.24
Q1
0.04
Min
0.01
Largest peers
APH
1.03
AAPL
0.84
CSCO
0.62
ERIC
0.41
SNDK
0.01
ANET
--
DELL
--
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Where Telefonaktiebolaget LM Ericsson (ERIC) stands on debt-to-equity ratio within its Technology Hardware & Equipment peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Telefonaktiebolaget LM Ericsson (ERIC) metric values compared with Technology Hardware & Equipment industry-group medians
MetricCurrent stock: ERICIndustry group median
Current Ratio (MRQ)1.161.95
Debt / Equity (MRQ)0.410.24
Net Debt / EBITDA--0.16

Dividends

Dividend Yield (TTM)

Telefonaktiebolaget LM Ericsson (ERIC) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.

ERIC

Technology Hardware & Equipment industry group

0.00%

Group distribution
Max
0.73%
Q3
0.31%
ERIC
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
CSCO
1.73%
DELL
0.73%
APH
0.70%
AAPL
0.31%
ERIC
0.00%
ANET
0.00%
SNDK
0.00%
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Where Telefonaktiebolaget LM Ericsson (ERIC) stands on dividend yield within its Technology Hardware & Equipment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Telefonaktiebolaget LM Ericsson (ERIC) has payout ratio of 51.66%, above the peer distribution for its industry. The dividend consumes more reported earnings than peers normally do, leaving unusually thin earnings cover.

ERIC

Technology Hardware & Equipment industry group

51.66%

Group distribution
ERIC
51.66%
Max
32.27%
Q3
14.48%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
ERIC
51.66%
CSCO
49.85%
APH
21.74%
DELL
13.43%
AAPL
11.80%
ANET
0.00%
SNDK
0.00%
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Where Telefonaktiebolaget LM Ericsson (ERIC) stands on payout ratio within its Technology Hardware & Equipment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Telefonaktiebolaget LM Ericsson (ERIC) metric values compared with Technology Hardware & Equipment industry-group medians
MetricCurrent stock: ERICIndustry group median
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)51.66%0.00%

Valuation

P/E Ratio (TTM)

Telefonaktiebolaget LM Ericsson (ERIC) trades at P/E ratio of 16.55, in the cheaper earnings-multiple quartile for its industry. Investors are paying less for each dollar of TTM earnings than they usually pay for comparable businesses.

ERIC

Technology Hardware & Equipment industry group

16.55

Group distribution
Max
69.48
Q3
41.02
Median
26.39
Q1
19.36
ERIC
16.55
Min
6.07
Largest peers
ANET
45.79
AAPL
38.13
APH
32.43
CSCO
28.18
DELL
19.10
ERIC
16.55
SNDK
6.67
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Where Telefonaktiebolaget LM Ericsson (ERIC) stands on P/E ratio within its Technology Hardware & Equipment peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

No usable P/S ratio is available for Telefonaktiebolaget LM Ericsson (ERIC) this period, so the revenue-based valuation read is skipped.

ERIC

Technology Hardware & Equipment industry group

--

Group distribution
Max
11.30
Q3
5.82
Median
2.56
Q1
1.05
Min
0.00
ERIC
--
Largest peers
ANET
18.15
AAPL
10.39
CSCO
5.84
APH
5.57
SNDK
4.10
DELL
1.38
ERIC
--
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Telefonaktiebolaget LM Ericsson (ERIC) doesn’t report P/S ratio this period; the box shows the Technology Hardware & Equipment group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Telefonaktiebolaget LM Ericsson (ERIC) trades at 0.33 on P/B ratio, in the lower book-value quartile for its industry. Investors are paying less for the balance-sheet equity than they pay for most peers, with returns on that equity still central to the read.

ERIC

Technology Hardware & Equipment industry group

0.33

Group distribution
Max
10.75
Q3
5.52
Median
3.17
Q1
1.79
ERIC
0.33
Min
0.33
Largest peers
AAPL
44.39
ANET
13.12
APH
10.75
CSCO
7.36
SNDK
6.63
ERIC
0.33
DELL
-147.32
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Where Telefonaktiebolaget LM Ericsson (ERIC) stands on P/B ratio within its Technology Hardware & Equipment peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Telefonaktiebolaget LM Ericsson (ERIC) metric values compared with Technology Hardware & Equipment industry-group medians
MetricCurrent stock: ERICIndustry group median
P/E Ratio (TTM)16.5526.39
P/S Ratio (TTM)--2.56
P/B Ratio (MRQ)0.333.17
Free Cash Flow Yield (TTM)86.49%2.83%