Telefonaktiebolaget L M Ericsson - ADR

Telefonaktiebolaget L M Ericsson - ADR

ERIC

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Market Cap$40.78B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Telefonaktiebolaget L M Ericsson - ADRTelefonaktiebolaget L M Ericsson - ADR15.42.5%24%0.20.8

Earnings Call Q1 2026

April 17, 2026 - AI Summary

Strong Q1 Performance with Currency Headwinds: Ericsson's Q1 2026 results showed an organic growth of 6% year-on-year, despite reported sales falling 10% due to a strong Swedish krona impacting financials. The gross margin remained healthy at 48.1% for the group and 50.4% in the networks segment, showcasing resilience in a challenging currency environment.
Diverse Geographic Presence Mitigates Risks: The company highlighted improved geographic mix reducing reliance on North American revenue, although sales in North America decreased by mid-single digits. Growth in strategic markets like India and Japan was noted, indicating that the company is less sensitive to fluctuations in any single market.
Challenges with Cost Inflation: Rising input costs, particularly in memory and semiconductor prices, pose a challenge. The company is actively working with customers and suppliers to mitigate cost pressures through negotiations and product substitution. While some inflationary pressures are expected, operational efficiency improvements are being observed.

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$15.75

Current Fair Value

28.3% upside

Undervalued by 28.3% based on the discounted cash flow analysis.

Share Statistics

Market cap$40.78 Billion
Enterprise Value$73.58 Billion
Dividend Yield$0.31 (2.50%)
Earnings per Share$8.01
Beta0.52
Outstanding Shares3,333,000,000

Return

Return on Equity24.45%ROE
Return on Assets8.63%
Return on Invested Capital25.06%

Valuation & Multiples

P/E Ratio15.44P/E Ratio
PEG-19.84PEG
Price to Sales0.18Price to Sales
Price to Book Ratio0.41Price to Book Ratio
Enterprise Value to Revenue0.32
Enterprise Value to EBIT1.9
Enterprise Value to Net Income2
Total Debt to Enterprise1.15
Debt to Equity0.83Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
April 21, 2026
EPS Estimate
$0.12
Average shareholder expectation
Revenue Estimate
$5.74 B
Average shareholder expectation

Next Earnings Call

Expected Date
July 14, 2026
EPS Estimate
$0.13
Average shareholder expectation
Revenue Estimate
$5.90 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio0.3682 19.28%
Total Calls1,837,500 1.96%
Total Puts676,500 105.81%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %9.45% 0.19%
Total Invested$3.55B 14.38%
Investors Holding385 26.00%

ESG Score

No data

About Telefonaktiebolaget L M Ericsson

CEO: E. Borje Ekholm

Relevant Senate Committees

Finance

This powerful committee controls taxation, trade, and entitlement spending. Changes in corporate tax policy, international trade agreements, and tariffs directly impact Ericsson's profitability, global supply chain costs, and competitive position as a multinational corporation.

Appropriations

This committee allocates federal discretionary spending. Its subcommittees determine the precise funding for government programs, including those related to telecom infrastructure, cybersecurity, and IT services that Ericsson could supply, thereby directly impacting potential federal contract revenue.

Select Committee on Intelligence

As a critical provider of telecommunications infrastructure and software, Ericsson's products are vital for national security. Members receiving classified briefings on global threats, cybersecurity, and supply chain vulnerabilities for critical technologies could possess highly material non-public information directly impacting Ericsson.

Commerce, Science, and Transportation

This committee has vast jurisdiction over interstate commerce, the FCC, and FTC. It directly impacts 'Big Tech' and the telecommunications sector through privacy laws, net neutrality regulations, and oversight of communications infrastructure, which are core to Ericsson's business.

Foreign Relations

Ericsson is a global telecommunications company. This committee's influence on U.S. foreign policy, trade agreements, and sanctions (e.g., regarding competitors like Huawei, or market access in specific countries) directly impacts Ericsson's international sales, supply chain, and competitive landscape.