Telefonaktiebolaget L M Ericsson - ADR

Telefonaktiebolaget L M Ericsson - ADR

ERIC

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Market Cap$32.42B
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Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Telefonaktiebolaget L M Ericsson - ADRTelefonaktiebolaget L M Ericsson - ADR12.93.07%24%0.10.8

Earnings Call Q2 2026

July 14, 2026 - AI Summary

Q2 headline performance (resilience + margins) - Net sales SEK 52.7bn, -1% organic YoY (but +1% organic YoY excluding the Q2’25 one-off IPR settlement). - Gross margin 48% (+2pp vs last year excluding one-off IPR effects); EBITDA margin 13.1% (in line). - Demonstrated disciplined execution and healthy margin delivery despite a tough environment.
Segment dynamics (where growth came from / where it didn’t) - Networks: sales SEK 33bn, -8% YoY (-4% organic). Organic decline mainly reflects IPR one-offs last year; margin 17.7% EBITDA margin (slightly down YoY). - Cloud Software & Services: sales SEK 14.7bn, +3% YoY; +5% organic (all market areas; improved delivery efficiency). EBITDA margin 14.2% (improved; rolling 4Q adjusted EBITDA margin ~13%, “new high”). - Enterprise: reported sales -19% YoY (impacted by divestment of iconectiv + FX). Organic +3%; however profitability weakened with divestment/product mix (EBITDA SEK -0.8bn).
Cash flow / balance sheet (what matters for investors) - Cash flow before M&A: SEK 0.4bn in Q2, driven by earnings but hit by higher inventories (inventory build for planned Q3 deliveries). - Rolling 4Q cash flow to net sales ~12%, within/upper-end of target 9–12%. - Net cash down SEK 8.3bn sequentially to SEK 59.8bn, mainly due to dividend payments and share repurchases (share buybacks are an explicit capital-return driver mentioned).

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$14.94

Current Fair Value

60.5% upside

Undervalued by 60.5% based on the discounted cash flow analysis.

Share Statistics

Market cap$32.42 Billion
Enterprise Value$75.23 Billion
Dividend Yield$0.31 (3.07%)
Earnings per Share$8.01
Beta0.52
Outstanding Shares3,313,000,000

Return

Return on Equity23.56%ROE
Return on Assets8.52%
Return on Invested Capital24.98%

Valuation & Multiples

P/E Ratio12.86P/E Ratio
PEG-130.7PEG
Price to Sales0.13Price to Sales
Price to Book Ratio0.3Price to Book Ratio
Enterprise Value to Revenue0.33
Enterprise Value to EBIT1.93
Enterprise Value to Net Income3
Total Debt to Enterprise1.12
Debt to Equity0.81Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
July 21, 2026
EPS Estimate
$0.15
Average shareholder expectation
Revenue Estimate
$5.94 B
Average shareholder expectation

Next Earnings Call

Expected Date
October 13, 2026
EPS Estimate
$0.16
Average shareholder expectation
Revenue Estimate
$5.80 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio0.0000 36.82%
Total Calls- 100.00%
Total Puts- 100.00%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %0.07% 9.38%
Total Invested$23.45M 99.34%
Investors Holding65 321.00%

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.