Telefonaktiebolaget LM Ericsson

Market Cap: Large Cap
Industry: Telecom - Equipment & Accessories
ISIN: SE0000108656

SEK

96.70

-0.48 (-0.49%)

Aug 07

OME

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Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ependion AB

INVISIO AB

Doro AB

Telefonaktiebolaget LM Ericsson

Irisity AB

Waystream Group AB

GomSpace Group AB

Maven Wireless Sweden AB

Net Insight AB

Gapwaves AB

AAC Clyde Space AB

Why is Telefonaktiebolaget LM Ericsson ?

Flat results in Jun 26

INTEREST(Q) At SEK 680 MM has Grown at 14.48%
DIVIDEND PER SHARE(HY) Lowest at SEK 3.6

With ROE of 28.98%, it has a expensive valuation with a 3.95 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 33.82%, its profits have risen by 39.5% ; the PEG ratio of the company is 0.4

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Telefonaktiebolaget LM Ericsson for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Telefonaktiebolaget LM Ericsson

33.82%

28.90

35.02%

OMX Stockholm 30

27.7%

1.79

15.50%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.37%

EBIT Growth (5y)

2.61%

EBIT to Interest (avg)

8.65

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.14

Sales to Capital Employed (avg)

1.81

Tax Ratio

24.66%

Dividend Payout Ratio

35.18%

Pledged Shares

Institutional Holding

0.11%

ROCE (avg)

32.43%

ROE (avg)

18.77%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.95

EV to EBIT

11.78

EV to EBITDA

9.73

EV to Capital Employed

5.16

EV to Sales

1.62

PEG Ratio

0.35

Dividend Yield

2.23%

ROCE (Latest)

43.84%

ROE (Latest)

28.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.7% (YoY

-3What is not working for the Company

INTEREST(Q)

At SEK 680 MM has Grown at 14.48%

DIVIDEND PER SHARE(HY)

Lowest at SEK 3.6

Here's what is working for Telefonaktiebolaget LM Ericsson

Raw Material Cost

Fallen by -0.7% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Telefonaktiebolaget LM Ericsson

Interest

At SEK 680 MM has Grown at 14.48%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SEK MM)

Dividend per share

Lowest at SEK 3.6

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (SEK)