# Telefonaktiebolaget LM Ericsson (publ) (ERIC-B.ST)

Canonical: https://gigainvestors.com/s/ERIC-B.ST

Analysis as of: 2026-10-16T07:34:11.498Z. Financial observations: FY1996–FY2026.

Listing currency: SEK. Reporting currency: SEK.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: SEK 103.70 per share; close as of 2026-10-15.

Estimated value: low SEK 73.60 per share, central SEK 81.65 per share, high SEK 92.37 per share. Buy at or below the central value SEK 81.65 per share. Valuation as of 2026-10-16T07:34:11.498Z; scenarios are not confidence intervals.

Expected annual return: 8.2% at the stated quote. About 8.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; SE 10-year bond 3.1% + 4 points).

## Checklist

### understandable: fail

- 6 revenue declines in the last 10 years

- more than 5 revenue declines in ten years

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 6

- Years with a net loss: 3

- Operating margin variation: 1.85×

Chart: Operating margin; fiscal year observations.

- FY2017: -0.19×

- FY2018: 0.01×

- FY2019: 0.05×

- FY2020: 0.12×

- FY2021: 0.14×

- FY2022: 0.10×

- FY2023: 0.00×

- FY2024: 0.03×

- FY2025: 0.14×

- LTM to Jun 2026: 0.14×

### moat: fail

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 16.1%

- ROIC, second-lowest year: 0.1%

- Typical minus recent gross margin: -4.1 pp

- Typical gross margin (annual median): 40.0%

- Recent gross margin (lower of latest and 3-year median): 44.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.3%

- ROIC including acquisitions, ten-year median: 3.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 5.6%

- FY2017: -48.4%

- FY2018: 2.2%

- FY2019: 14.6%

- FY2020: 44.3%

- FY2021: 55.8%

- FY2022: 46.3%

- FY2023: 0.1%

- FY2024: 17.6%

- FY2025: 53.0%

### economics: pass

- Owner earnings / net income, 5-yr: 1.36×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: SEK 59B

- Net income, five-year total: SEK 43B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -2.0 pp

- Working capital / revenue, change between three-year averages: -15.5 pp

- Working capital / revenue, final three-year average: 25.4%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.03×

- FY2022: 1.11×

- FY2023: 0.88×

- FY2024: 245.05×

- FY2025: 1.17×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 2.2% vs 17.6%

- Per-share earnings: 0.52 to 0.01 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.3%

- Ordinary dilution, 5-year annual growth: 0.1%

- Market cap gain: SEK 126B

- Cumulative retained earnings: SEK -33B

- Diluted shares, 10-year annual growth: 0.3%

- Diluted shares, 5-year annual growth: 0.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -42.7%

- Per-share value change: SEK -0.51

- Per-share value, starting three-year median: SEK 0.52

- Per-share value, ending three-year median: SEK 0.01

- Buybacks concentrated in cheaper years (correlation): 0.50

- Average buyback yield: 0.0%

- Buyback history: 3 years

- Debt-funded buybacks: No

- Acquisition spending: SEK 81B

- Cumulative net income, 10 years: SEK 23B

- ROIC, first three-year median: 2.2%

- ROIC, last three-year median: 17.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: SEK 0.52

- FY2017: SEK -10.60

- FY2018: SEK -1.97

- FY2019: SEK 0.67

- FY2020: SEK 5.25

- FY2021: SEK 6.81

- FY2022: SEK 5.62

- FY2023: SEK -7.94

- FY2024: SEK 0.01

- FY2025: SEK 8.51

### accounting: pass

- Sloan accruals: -1.6%

- Receivables to sales index (DSRI): 0.98×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.16×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.51×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.3%

- FY2017: -17.2%

- FY2018: -5.9%

- FY2019: -5.3%

- FY2020: -4.2%

- FY2021: -5.4%

- FY2022: -3.5%

- FY2023: -10.8%

- FY2024: -15.8%

- FY2025: -1.6%

## Holders

## Price story

Price needs cash profits to grow 4.5% a year for ten years · sales -3.9%

Story as of 2026-10-16T09:59:59.496Z; price observation 2026-10-15.

Price needs cash profits to grow 4.5% a year for ten years

- 2026-02-05: Ericsson (OM:ERIC B) Valuation Check After Higher 2025 Earnings And Proposed Dividend Increase ([finance.yahoo.com](https://finance.yahoo.com/news/ericsson-om-eric-b-valuation-011304905.html))

### Sales · FY2025–2026

sales -3.9%; source https://filings.xbrl.org/549300W9JLPW15XIFM52/2024-12-31/ESEF/SE/0/549300W9JLPW15XIFM52-2024-12-31-0-sv/reports/549300W9JLPW15XIFM52-2024-12-31-0-sv.xhtml; observed 2025-05-08.

- FY2017: SEK 201B 

- FY2018: SEK 211B 

- FY2019: SEK 227B 

- FY2020: SEK 232B 

- FY2021: SEK 232B 

- FY2022: SEK 272B 

- FY2023: SEK 263B 

- FY2024: SEK 248B 

- FY2025: SEK 237B 

- FY2026: SEK 228B 

### Gross margin · FY2025

gross margin 48.1%; source https://filings.xbrl.org/549300W9JLPW15XIFM52/2024-12-31/ESEF/SE/0/549300W9JLPW15XIFM52-2024-12-31-0-sv/reports/549300W9JLPW15XIFM52-2024-12-31-0-sv.xhtml; observed 2025-05-08.

- FY2016: 29.8% 

- FY2017: 22.1% 

- FY2018: 32.3% 

- FY2019: 37.3% 

- FY2020: 40.3% 

- FY2021: 43.4% 

- FY2022: 41.7% 

- FY2023: 39.6% 

- FY2024: 44.1% 

- FY2025: 48.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in communication equipment; annual sales are SEK 236.7 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2025: revenue 236681000000; grossProfit 113945000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ERIC-B.ST: Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions to communications service providers, enterprises, and the public sector in the Americas, Europe, the Middle East, Africa, Northeast Asia, Southeast Asia, Oceania, and India. It operates through Networks; Cloud Software and Services; Enterprise; and Other segments. The Networks segment offers hardware, software, and service offerings for intelligent, reliable and flexible 5G networks. This segment also provides energy-efficient RAN with an AI-native software architecture deployable on Ericsson silicon and third-party CPUs/GPUs; transport networks; and active/ passive antennas, as well as deployment and lifecycle management services. The Cloud Software and Services segment provides core networks, network management, business and operations support systems, and network operations delivered as managed services, including secure data and voice connectivity, service monetization and orchestration tools, and network management services. The Enterprise segment offers intelligent networking and advanced communications software solutions comprising global communications platform, wireless wide area networks (WWAN), and private 5G networks. The Other segment includes RedBee Media that prepares and distributes live and on-demand video services for broadcasters, sports leagues, and communications service providers. The company has a strategic collaboration with T-Mobile US, Inc for the development of AI-native Scheduler with Link Adaptation software. The company was formerly known as Allmanna Telefon AB LM Ericsson and changed its name to Telefonaktiebolaget LM Ericsson (publ) in January 1926. Telefonaktiebolaget LM Ericsson (publ) was founded in 1876 and is headquartered in Stockholm, Sweden.

### Why customers stay

Margins ranged from 39.6% to 48.1% during 2023–25; it earns 16.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2023: grossProfit / revenue = 39.6%.

- Source: https://filings.xbrl.org/549300W9JLPW15XIFM52/2024-12-31/ESEF/SE/0/549300W9JLPW15XIFM52-2024-12-31-0-sv/reports/549300W9JLPW15XIFM52-2024-12-31-0-sv.xhtml (filed 2025-05-08); FY2024: grossProfit / revenue = 44.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2025: grossProfit / revenue = 48.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); 10-year return on capital observations [[2016,0.05622176450394782],[2017,-0.48444726810673444],[2018,0.021777866560127847],[2019,0.14579078112061827],[2020,0.44348700836666094],[2021,0.5582736353749032],[2022,0.46336161536648857],[2023,0.0011432085812998571],[2024,0.1764164490861619],[2025,0.5298551289877388]]; median 0.16110361510339008. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2019: growth capex 0; upkeep 6663000000; owner earnings 663600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2020: growth capex 0; upkeep 5310000000; owner earnings 17385000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2021: growth capex 0; upkeep 4625000000; owner earnings 23323400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2022: growth capex 0; upkeep 6197000000; owner earnings 20808200000. Growth capex / owner earnings = 0.

- Source: https://filings.xbrl.org/549300W9JLPW15XIFM52/2024-12-31/ESEF/SE/0/549300W9JLPW15XIFM52-2024-12-31-0-sv/reports/549300W9JLPW15XIFM52-2024-12-31-0-sv.xhtml (filed 2025-05-08); FY2024: growth capex 0; upkeep 3640000000; owner earnings 4901000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2025: growth capex 0; upkeep 2630000000; owner earnings 33194800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); Dividend observations: [[2016,12263000000],[2017,3424000000],[2018,3425000000],[2019,4450000000],[2020,5996000000],[2021,6889000000],[2022,8415000000],[2023,8991000000],[2024,9233000000],[2025,9545000000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ERIC-B.ST SharesStats.PercentInsiders = 0.098 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 4.5% yearly over ten years; actual growth was 9.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); Ten-year compound average after fade. Initial solved rate 0.0512410843083716. Price 103.7; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 4.047715558282647 → FY2025 9.932615200478756. Closing-price date 2026-10-15.

## Monthly share-price history (SEK per share)

- 2016-10: SEK 43.72 per share

- 2016-11: SEK 47.49 per share

- 2016-12: SEK 53.50 per share

- 2017-01: SEK 51.65 per share

- 2017-02: SEK 58.75 per share

- 2017-03: SEK 59.80 per share

- 2017-04: SEK 57.10 per share

- 2017-05: SEK 63.40 per share

- 2017-06: SEK 60.25 per share

- 2017-07: SEK 52.45 per share

- 2017-08: SEK 46.57 per share

- 2017-09: SEK 46.77 per share

- 2017-10: SEK 52.70 per share

- 2017-11: SEK 52.65 per share

- 2017-12: SEK 53.85 per share

- 2018-01: SEK 50.60 per share

- 2018-02: SEK 55.76 per share

- 2018-03: SEK 52.92 per share

- 2018-04: SEK 67.20 per share

- 2018-05: SEK 63.96 per share

- 2018-06: SEK 69.26 per share

- 2018-07: SEK 68.88 per share

- 2018-08: SEK 77.14 per share

- 2018-09: SEK 78.88 per share

- 2018-10: SEK 79.78 per share

- 2018-11: SEK 75.92 per share

- 2018-12: SEK 77.92 per share

- 2019-01: SEK 80.36 per share

- 2019-02: SEK 84.54 per share

- 2019-03: SEK 85.42 per share

- 2019-04: SEK 94.00 per share

- 2019-05: SEK 91.48 per share

- 2019-06: SEK 88.10 per share

- 2019-07: SEK 85.10 per share

- 2019-08: SEK 76.46 per share

- 2019-09: SEK 78.66 per share

- 2019-10: SEK 84.36 per share

- 2019-11: SEK 86.30 per share

- 2019-12: SEK 81.56 per share

- 2020-01: SEK 75.76 per share

- 2020-02: SEK 76.68 per share

- 2020-03: SEK 81.06 per share

- 2020-04: SEK 85.10 per share

- 2020-05: SEK 85.64 per share

- 2020-06: SEK 86.16 per share

- 2020-07: SEK 100.80 per share

- 2020-08: SEK 100.25 per share

- 2020-09: SEK 98.28 per share

- 2020-10: SEK 99.28 per share

- 2020-11: SEK 104.85 per share

- 2020-12: SEK 97.64 per share

- 2021-01: SEK 105.65 per share

- 2021-02: SEK 105.40 per share

- 2021-03: SEK 115.55 per share

- 2021-04: SEK 115.94 per share

- 2021-05: SEK 109.96 per share

- 2021-06: SEK 107.56 per share

- 2021-07: SEK 98.87 per share

- 2021-08: SEK 102.30 per share

- 2021-09: SEK 99.10 per share

- 2021-10: SEK 94.00 per share

- 2021-11: SEK 91.16 per share

- 2021-12: SEK 99.79 per share

- 2022-01: SEK 114.80 per share

- 2022-02: SEK 87.90 per share

- 2022-03: SEK 86.30 per share

- 2022-04: SEK 79.35 per share

- 2022-05: SEK 79.19 per share

- 2022-06: SEK 76.27 per share

- 2022-07: SEK 76.87 per share

- 2022-08: SEK 79.98 per share

- 2022-09: SEK 65.49 per share

- 2022-10: SEK 61.40 per share

- 2022-11: SEK 65.12 per share

- 2022-12: SEK 60.90 per share

- 2023-01: SEK 60.38 per share

- 2023-02: SEK 58.10 per share

- 2023-03: SEK 60.60 per share

- 2023-04: SEK 56.37 per share

- 2023-05: SEK 56.12 per share

- 2023-06: SEK 58.41 per share

- 2023-07: SEK 52.89 per share

- 2023-08: SEK 56.33 per share

- 2023-09: SEK 53.33 per share

- 2023-10: SEK 50.01 per share

- 2023-11: SEK 51.96 per share

- 2023-12: SEK 63.11 per share

- 2024-01: SEK 57.73 per share

- 2024-02: SEK 56.23 per share

- 2024-03: SEK 57.64 per share

- 2024-04: SEK 56.22 per share

- 2024-05: SEK 64.58 per share

- 2024-06: SEK 65.80 per share

- 2024-07: SEK 73.26 per share

- 2024-08: SEK 76.52 per share

- 2024-09: SEK 76.72 per share

- 2024-10: SEK 88.98 per share

- 2024-11: SEK 88.68 per share

- 2024-12: SEK 89.88 per share

- 2025-01: SEK 83.86 per share

- 2025-02: SEK 88.16 per share

- 2025-03: SEK 77.68 per share

- 2025-04: SEK 81.38 per share

- 2025-05: SEK 81.48 per share

- 2025-06: SEK 80.94 per share

- 2025-07: SEK 71.34 per share

- 2025-08: SEK 75.30 per share

- 2025-09: SEK 77.84 per share

- 2025-10: SEK 95.80 per share

- 2025-11: SEK 91.08 per share

- 2025-12: SEK 90.60 per share

- 2026-01: SEK 96.66 per share

- 2026-02: SEK 104.55 per share

- 2026-03: SEK 106.30 per share

- 2026-04: SEK 108.35 per share

- 2026-05: SEK 120.10 per share

- 2026-06: SEK 108.15 per share

- 2026-07: SEK 93.82 per share

- 2026-08: SEK 96.72 per share

- 2026-09: SEK 92.04 per share

- 2026-10: SEK 103.70 per share

## Annual estimated value (SEK per share)

- FY2016: low SEK 53.06 per share, central SEK 58.46 per share, high SEK 65.66 per share

- FY2017: low SEK 46.91 per share, central SEK 51.78 per share, high SEK 58.25 per share

- FY2021: low SEK 20.93 per share, central SEK 21.23 per share, high SEK 21.64 per share

- FY2022: low SEK 79.09 per share, central SEK 88.27 per share, high SEK 100.50 per share

- FY2023: low SEK 76.53 per share, central SEK 85.44 per share, high SEK 97.31 per share

- FY2024: low SEK 77.56 per share, central SEK 85.94 per share, high SEK 97.10 per share

- FY2025: low SEK 74.85 per share, central SEK 83.03 per share, high SEK 93.91 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:40:03.048Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original ESEF filing](https://filings.xbrl.org/549300W9JLPW15XIFM52/2024-12-31/ESEF/SE/0/549300W9JLPW15XIFM52-2024-12-31-0-sv/reports/549300W9JLPW15XIFM52-2024-12-31-0-sv.xhtml); period 2024-12-31, filed 2025-05-08.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.