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Telefonaktiebolaget L M Ericsson Class B ERIC B

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Stock XSTO Rating as of
SEK 93.18 +1.62 (1.77%)
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Ericsson Remains Dominant in Mobile Networking Despite a Delay in Return to Improved Profitability

Martin Szumski

Ericsson operates globally but primarily competes in Western-aligned markets where government restrictions have excluded Chinese competitors. Per Omdia, Ericsson’s global market share excluding China was 36% in 2024, leading Nokia and Huawei. By maintaining leading market share, Ericsson gains operating leverage on the massive research and development required to develop new technology and contribute to each successive generation of wireless standards.

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Price vs Fair Value

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ERIC B is trading at a LOCK|%HlT& premium.
Price
SEK 91.56
Fair Value
LOCK|&%
Uncertainty
LOCK|>@r@
1-Star Price
@rZ
5-Star Price
##Y
Economic Moat
LOCK|DG
Capital Allocation
LOCK|Z$DdFP

Bulls Say, Bears Say

Bulls

Ericsson retains a dominant position in the US, which is the most profitable market for wireless networking equipment providers.

Bears

Carriers continue to try to commoditize portions of Ericsson’s product offerings. The latest attempt, ORAN, threatens to disaggregate software and hardware, making it easier for carriers to play vendors off each other.

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Trading Information

Previous Close Price
SEK 91.56
Day Range
SEK 92.38–94.28
52-Week Range
SEK 77.68–128.45
Bid/Ask
SEK 93.28 / SEK 93.34
Shares Outstanding
3.26B
Market Cap
SEK 304.03B
Volume/Avg
10M / 9M

Key Statistics

Price/Earnings (Normalized)
9.48
Price/Sales
1.34
Dividend Yield (Trailing)
3.28%
Dividend Yield (Forward)
3.28%
Dividend Payment Schedule
Apr, Oct
Total Yield
3.28%

Company Profile

Ericsson is a networking equipment and software provider, primarily selling mobile networking equipment and services to wireless service providers. Ericsson operates in three segments: networks, cloud software and services, and enterprise. While large wireless carriers are its largest customers, Ericsson has expanded its offerings for large enterprises. These products and services include private 5G networking, contact centers as a service, and application performance interfaces. Ericsson aims to combine its 5G network expertise with cloud-native, as-a-service platforms offering a more comprehensive hardware and software package. Ericsson also monetizes its research and development investments by licensing patents to handset manufacturers.
Sector
Technology
Industry
Communication Equipment
Stock Style Box
Large Value
Total Number of Employees
86,536
Website
https://www.ericsson.com

Competitors

Valuation

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Metric
ERIC B
CSCO
NOK
Price/Earnings (Normalized)
 9.4825.1818.16
Price/Book Value
 2.918.532.40
Price/Sales
 1.346.852.48
Price/Cash Flow
 11.4423.4019.95
Price/Earnings
ERIC B
CSCO
NOK

Financial Strength

Metric
ERIC B
CSCO
NOK
Quick Ratio
 0.890.641.22
Current Ratio
 1.120.931.51
Interest Coverage
 14.5211.30—
Quick Ratio
ERIC B
CSCO
NOK

Profitability

Metric
ERIC B
CSCO
NOK
Return on Assets (Normalized)
 9.02%13.87%5.24%
Return on Equity (Normalized)
 25.16%35.85%9.41%
Return on Invested Capital (Normalized)
 17.74%22.89%6.78%
Return on Assets
ERIC B
CSCO
NOK

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LOCK|pb#WvyBLOCK|!?$86B
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LOCK|WdmH$J!LOCK|XZ!$74B
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—LOCK|$D$58B
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LOCK|?gh!krLOCK|cf$58B
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LOCK|Xn!?>BGLOCK|lwGK@$54B
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LOCK|Yf!!^vMLOCK|lh$30B
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