Telefonaktiebolaget LM Ericsson (ERIC B) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

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

Telefonaktiebolaget LM Ericsson

Doro AB

Waystream Group AB

Irisity AB

INVISIO AB

Net Insight AB

GomSpace Group AB

Gapwaves AB

Maven Wireless Sweden AB

AAC Clyde Space AB

Why is Telefonaktiebolaget LM Ericsson ?

With ROE of 27.81%, it has a fair valuation with a 3.44 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 36.38%, its profits have risen by 66.9% ; the PEG ratio of the company is 0.2

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

36.38%

35.39

32.42%

OMX Stockholm 30

30.13%

1.89

15.95%

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)

16.03

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.14

Sales to Capital Employed (avg)

1.83

Tax Ratio

56.31%

Dividend Payout Ratio

35.18%

Pledged Shares

Institutional Holding

0.46%

ROCE (avg)

33.33%

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

3.44

EV to EBIT

10.84

EV to EBITDA

8.83

EV to Capital Employed

4.06

EV to Sales

1.50

PEG Ratio

0.19

Dividend Yield

2.33%

ROCE (Latest)

37.43%

ROE (Latest)

27.81%

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

9What is working for the Company

ROCE(HY)

Highest at 26.71%

INVENTORY TURNOVER RATIO(HY)

Highest at 4.5 times

RAW MATERIAL COST(Y)

Fallen by 0.84% (YoY

NET PROFIT(9M)

Higher at SEK 24,434.89 MM

DEBT-EQUITY RATIO (HY)

Lowest at -23.23 %

-6What is not working for the Company

NET SALES(Q)

Lowest at SEK 49,332 MM

OPERATING PROFIT(Q)

Lowest at SEK 6,838 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 13.86 %

PRE-TAX PROFIT(Q)

Lowest at SEK 5,117 MM

NET PROFIT(Q)

Lowest at SEK 3,644.87 MM

EPS(Q)

Lowest at SEK 0.27

Here's what is working for Telefonaktiebolaget LM Ericsson

Inventory Turnover Ratio

Highest at 4.5 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debt-Equity Ratio

Lowest at -23.23 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by 0.84% (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

Net Sales

Lowest at SEK 49,332 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (SEK MM)

Operating Profit

Lowest at SEK 6,838 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (SEK MM)

Operating Profit Margin

Lowest at 13.86 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at SEK 5,117 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SEK MM)

Net Profit

Lowest at SEK 3,644.87 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SEK MM)

EPS

Lowest at SEK 0.27

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (SEK)