Telefonaktiebolaget LM Ericsson (publ) (ERIC) Stock

About Telefonaktiebolaget LM Ericsson (publ)

Telefonaktiebolaget LM Ericsson (publ), along with its various subsidiaries, operates as a global supplier of communication infrastructure, software, and service solutions, primarily serving the telecommunications industry and other diverse sectors. The company's business is organized into four distinct segments: Networks, Digital Services, Managed Services, and Emerging Business and Other. The Networks division focuses on delivering cutting-edge radio access network (RAN) solutions for a wide array of network spectrums, encompassing robust integrated hardware and software, complete antenna and transport systems, and a full spectrum of services for network setup and ongoing maintenance. Digital Services provides advanced software-driven solutions for critical functions like business support systems (BSS), operational support systems (OSS), communication platforms, core network architecture, and cloud infrastructure. The Managed Services segment offers telecom operators an extensive range of provisions, including comprehensive network and IT management, network design and optimization, and application development and maintenance. Finally, the Emerging Business and Other segment encompasses innovative ventures such as Internet of Things (IoT) technologies, iconectiv, Cradlepoint (known for its wireless edge WAN 4G and 5G enterprise solutions), Red Bee Media, MediaKind, and other developing enterprises. Established in 1876 and based in Stockholm, Sweden, Ericsson maintains a substantial worldwide footprint, with operations spanning North America, Europe and Latin America, the Middle East and Africa, Southeast Asia, Oceania, India, Northeast Asia, and numerous other international markets.

Telefonaktiebolaget LM Ericsson (publ) is headquartered in SE.

Telefonaktiebolaget LM Ericsson (publ) (ERIC) stock trades at $11.35 with a market capitalization of $37.50B. The stock is valued at a price-to-earnings (P/E) ratio of 14.58, price-to-book of 3.59, price-to-sales of 1.58. Over the past 52 weeks the stock has ranged between $7.16 and $13.77, and currently trades 17.6% below its 52-week high. It pays a dividend yielding 2.82%.

On profitability, Telefonaktiebolaget LM Ericsson (publ) generates a return on equity (ROE) of 25.11% — well above the market average, a sign of a high-quality business, return on capital employed of 20.47%, an operating margin of 13.77%, a net profit margin of 10.90%.

In its most recent fiscal year, Telefonaktiebolaget LM Ericsson (publ) reported annual revenue of $222.5B, net profit of $26.7B, revenue has compounded at 1.5% a year over the last five years, profit at 11.4% a year. Profit growing faster than revenue points to expanding margins.

The balance sheet shows a debt-to-equity ratio of 0.38 — a conservative balance sheet with little leverage risk, a current ratio of 1.12, total assets of $279.2B, $43.9B in cash and equivalents.

ERIC has an average daily trading volume of 10,818,817 shares, a beta of 0.52 (less volatile than the overall market).

Official website: www.ericsson.com