-0.47%
-6.56%
-4.54%
15.94%
47.13%
-26.01%
12.12%
AI Spotlight on ERIC
Company Description
Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides communication infrastructure, services, and software solutions to the telecom and other sectors.It operates through four segments: Networks, Digital Services, Managed Services, and Emerging Business and Other.The Networks segment offers radio access network solutions for various network spectrum bands, including integrated high-performing hardware and software.
This segment also provides integrated antenna and transport solutions; and a range of service portfolio covering network deployment and support.The Digital Services segment offers software-based solutions for business support systems, operational support systems, communication services, core networks, and cloud infrastructure.The Managed Services segment provides networks and IT managed, network design and optimization, and application development and maintenance services to telecom operators.
The Emerging Business and Other segment includes emerging businesses comprising Internet of Things; iconectiv; Cradlepoint that offers wireless edge WAN 4G and 5G enterprise solutions; and Red Bee Media, MediaKind, and other new businesses.It operates in North America, Europe and Latin America, the Middle East and Africa, South East Asia, Oceania, India, North East Asia, and internationally.Telefonaktiebolaget LM Ericsson (publ) was founded in 1876 and is headquartered in Stockholm, Sweden.
Market Data
| Last Price | 84.94 |
| Change Percentage | -0.47% |
| Open | 85.38 |
| Previous Close | 85.34 |
| Market Cap ( Millions) | 279471 |
| Volume | 1534080 |
| Year High | 97.68 |
| Year Low | 53.02 |
| M A 50 | 90.69 |
| M A 200 | 77.02 |
Financial Ratios
| FCF Yield | 14.18% |
| Dividend Yield | 3.18% |
| ROE | -1.44% |
| Debt / Equity | 50.24% |
| Net Debt / EBIDTA | 13.84% |
| Price To Book | 3.27 |
| Price Earnings Ratio | -207.4 |
| Price To FCF | 7.05 |
| Price To sales | 1.13 |
| EV / EBITDA | 6.38 |
News
- Jan -30 - Telefonaktiebolaget LM Ericsson (ERIC): Cognitive Labs Drive Innovation in AI for Mobile Connectivity and Beyond
- Jan -28 - Ericsson touts ‘broad-based production’ as tariff deterrent
- Jan -25 - Telefonaktiebolaget L M Ericsson (ERIC) Q4 2024 Earnings Call Highlights: Strong North American ...
- Jan -24 - Telefonaktiebolaget Lm Ericsson (publ) (ERIC) Q4 2024 Earnings Call Transcript
- Jan -24 - Ericsson Stock Sinks on Warning US Tariffs Would Significantly Hurt Business
- Jan -24 - Ericsson Q4 Earnings: Sales Climb 1%, North America Shines, Dividend Raise, Guidance And More
- Jan -24 - Ericsson: Q4 Earnings Snapshot
- Jan -24 - Ericsson's Q4 revenue, core profit rises on US demand recovery
- Jan -23 - Ericsson ready to take advantage of Trump's tech policies, CTO says in Davos
- Jan -21 - Vonage Achieves SOC 2 Type II Compliance for Network APIs, Reinforcing its Commitment to Data Security and Customer Trust
- Jan -18 - Why you should avoid Ericsson stock in 2025, Bernstein
- Jan -17 - High Growth Tech Stocks To Watch For Potential Portfolio Strengthening
- Jan -16 - Uncovering Telefonaktiebolaget LM Ericsson And 2 Stocks That May Be Valued Below Their Estimated Worth
- Jan -14 - Will ERIC Stock Gain From the Expansion of Enterprise 5G Portfolio?
- Jan -09 - Invitation to media and analyst briefing for Ericsson Q4 2024 report
- Jan -08 - Historic API venture announces CEO
- Dec -26 - Will ERIC Stock Benefit From the Renewed Collaboration With Beyon?
- Dec -26 - Here’s Why Ericsson (ERIC) Surged in Q3
- Dec -19 - High Growth Tech Stocks to Watch in December 2024
- Dec -18 - Will a Favorable Trade Tribunal Patent Verdict Aid ERIC Stock?
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Networks
Expected Growth : 3.5 %
What the company do ?
Ericsson is a Swedish multinational networking and telecommunications equipment and services company, providing network infrastructure, software, and services to telecom operators.
Why we expect these perspectives ?
Ericsson's 3.5% growth in Networks is driven by increasing demand for 5G deployments, expansion in emerging markets, and growing need for network infrastructure upgrades. Additionally, the company's focus on R&D investments in 5G and IoT technologies, as well as its strategic partnerships and acquisitions, contribute to its growth momentum.
Segment n°2 -> Cloud Software and Services
Expected Growth : 4.0 %
What the company do ?
Ericsson Cloud Software and Services provide scalable, secure, and efficient solutions for telecom operators, enabling them to manage and optimize their networks, IT, and business operations.
Why we expect these perspectives ?
Ericsson's Cloud Software and Services segment growth is driven by increasing demand for 5G network infrastructure, digital transformation, and IoT adoption. Operators' need for cost-efficient and scalable solutions, coupled with Ericsson's strong R&D investments and strategic partnerships, contribute to the 4.0% growth rate.
Segment n°3 -> Enterprise
Expected Growth : 2.5 %
What the company do ?
Ericsson is a Swedish multinational networking and telecommunications equipment and services company, providing 5G and IoT solutions to industries and governments.
Why we expect these perspectives ?
Ericsson's 2.5% growth is driven by increasing demand for 5G network infrastructure, expansion in emerging markets, and growing need for digital transformation in industries. Additionally, the company's focus on cost savings, R&D investments, and strategic partnerships contribute to its growth momentum.
Segment n°4 -> Other Operations
Expected Growth : 2.0 %
What the company do ?
Other Operations from Telefonaktiebolaget LM Ericsson (publ) refers to the company's non-core businesses, including its media and broadcast services, and its emerging business units.
Why we expect these perspectives ?
Ericsson's Other Operations segment growth is driven by increasing demand for its emerging business and technology incubations, such as IoT, 5G, and automation. Additionally, the company's investments in digital services, including managed services and network design, are contributing to growth. Furthermore, Ericsson's focus on innovation and R&D is enabling the development of new products and services, driving revenue expansion.
Telefonaktiebolaget Lm Ericsson (Publ) Products
| Product Range | What is it ? |
|---|---|
| 5G RAN | Ericsson's 5G Radio Access Network (RAN) provides a scalable and flexible solution for 5G networks, enabling high-speed data transmission and low latency. |
| Core Network | Ericsson's Core Network provides a scalable and flexible solution for 4G and 5G networks, enabling high-speed data transmission and low latency. |
| IP Routing and Switching | Ericsson's IP Routing and Switching provides a scalable and flexible solution for IP networks, enabling high-speed data transmission and low latency. |
| Network Management | Ericsson's Network Management provides a comprehensive solution for managing and optimizing network performance, enabling operators to improve network efficiency and reduce costs. |
| OSS and BSS | Ericsson's OSS (Operations Support Systems) and BSS (Business Support Systems) provide a comprehensive solution for managing and optimizing network operations and business processes. |
| Managed Services | Ericsson's Managed Services provide a comprehensive solution for managing and optimizing network operations, enabling operators to improve network efficiency and reduce costs. |
| Digital Services | Ericsson's Digital Services provide a comprehensive solution for digital transformation, enabling operators to improve customer experience and reduce costs. |
| IoT | Ericsson's IoT solutions provide a comprehensive solution for IoT applications, enabling operators to improve efficiency and reduce costs. |
Telefonaktiebolaget LM Ericsson (publ)'s Porter Forces
Threat Of Substitutes
The threat of substitutes for Ericsson is moderate, as there are alternative solutions available for its products and services. However, the company's strong brand reputation and customer loyalty mitigate this threat to some extent.
Bargaining Power Of Customers
The bargaining power of customers is relatively low, as Ericsson's products and services are often customized to meet specific customer needs, making it difficult for customers to switch to alternative suppliers.
Bargaining Power Of Suppliers
The bargaining power of suppliers is moderate, as Ericsson relies on a diverse range of suppliers for its components and materials. However, the company's large scale of operations and strong relationships with suppliers help to mitigate this threat.
Threat Of New Entrants
The threat of new entrants is relatively low, as the telecommunications equipment industry has high barriers to entry, including significant capital requirements and the need for specialized expertise.
Intensity Of Rivalry
The intensity of rivalry in the telecommunications equipment industry is high, with several established players competing for market share. Ericsson faces intense competition from companies such as Huawei, Nokia, and ZTE.
Strength
Capital Structure
| Value | |
|---|---|
| Debt Weight | 33.23% |
| Debt Cost | 5.70% |
| Equity Weight | 66.77% |
| Equity Cost | 5.74% |
| WACC | 5.73% |
| Leverage | 49.77% |
Telefonaktiebolaget LM Ericsson (publ) : Quality Control
Telefonaktiebolaget LM Ericsson (publ) passed 3 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| HPE | Hewlett Packard Enterprise Company provides solutions that allow customers to capture, analyze, and act upon data seamlessly in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. … |
| EVS.BR | EVS Broadcast Equipment SA provides live video technology for broadcast and media productions worldwide. The company offers live replay and story telling products, including live replay and highlights systems, cloud-based … |
| GRMN | Garmin Ltd. designs, develops, manufactures, markets, and distributes a range of wireless devices in the Americas, the Asia Pacific, Australian Continent, Europe, the Middle East, and Africa. Its Fitness segment … |
| CSCO | Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, … |
| NOKIA.HE | Nokia Oyj provides mobile, fixed, and cloud network solutions worldwide. The company operates through four segments: Mobile Networks, Network Infrastructure, Cloud and Network Services, and Nokia Technologies. It offers products … |
Peers Metrics
DCF BETA
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Scoring Insights
Peers Group Analysis
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Ericsson
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EVS Broadcast Equipment
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HPE
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Cisco
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