ERIC
Telefonaktiebolaget LM Ericsson
$10.96
▲ 1.6%Updated Today 12:11 PM ET
ERIC at a glance — five pillars scored 0–100 from real filed financials.
Overall: Neutral · 54/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▲ Up 28.2% over the last 12 months
Market Cap
$33.72B
P/E
14.01x
Forward P/E (est.)
10.01x
ROE
25.1%
Revenue Growth
-7.4%
EPS Growth
1469.1%
Profit Margin
10.9%
FCF Yield
-30.0%
Debt / Equity
0.37x
ROIC
—
Interest Coverage
—
Current Ratio
—
Dividend Yield
2.8%
Implied Growth (rev. DCF)
—
Rating Score
54/100
Telefonaktiebolaget LM Ericsson (ERIC) is a large-cap company in the Communications industry, part of the Communication Services sector of the S&P 500, with a market value around $33.72B.
Our model rates ERIC Neutral (54/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what ERIC's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. ERIC trades near $10.96, around its 50-day average ($12.08) and 200-day average ($10.64). Price tangled in its moving averages means there is no clear trend — the stock is ranging.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 26 it is oversold — selling has been heavy and a bounce is possible.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.
Volatility — ATR. Average True Range is the typical daily move. ERIC's is $0.32 (~2.9% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month ERIC found buyers near $10.72 (support) and sellers near $13.09 (resistance); its 52-week range is $7.16–$13.77. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.6× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
Where ERIC sits versus its Communication Services sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 15 Communication Services companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How ERIC stacks up against its Communication Services peers — valuation, profitability, and growth versus the sector median.
In the Communication Services sector (43 S&P 500 companies), ERIC ranks #9 of 43 by our overall rating. It trades at roughly in line versus the sector on earnings (14x P/E vs. 15.4x median) with a higher return on equity (25.1% vs. 23.3%) and slower revenue growth (-7.4% vs. 1.6%).
P/E vs sector
14x
median 15.4x
ROE vs sector
25.1%
median 23.3%
Growth vs sector
-7.4%
median 1.6%
Sector rank
#9
of 43 by rating
Peers are the closest Communication Services companies by sub-industry and size. Sector median is across all 43 S&P 500 names in the sector. Educational, not a recommendation.
The case for ERIC:
- Strong return on equity (25.1%) shows capital is put to work well.
- A conservative balance sheet (debt/equity 0.4x) lowers risk.
- Pays a 2.8% dividend on top of any price gains.
The case against ERIC:
- Revenue growth is slow/negative (-7.4%), limiting the upside engine.
- Limited free cash flow at today's price.
Growth risk — sluggish revenue (-7.4%) leaves little margin for execution missteps.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the picture is mixed: Telefonaktiebolaget LM Ericsson is a large-cap communication services business with shrinking revenue, with modest profitability, and a sound balance sheet. It trades at 14.0x earnings, which our model scores Neutral (54/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
ERIC — frequently asked questions
Is ERIC a good stock to buy?
We don't give buy or sell advice. Our model rates Telefonaktiebolaget LM Ericsson Neutral (54/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is ERIC's rating on The Stocks School?
Telefonaktiebolaget LM Ericsson currently scores 54/100 (Neutral) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does ERIC's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Telefonaktiebolaget LM Ericsson's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for ERIC calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this ERIC analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell ERIC. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.