Summary: ERICSSON

  • From a short-term investment perspective, the company presents a deteriorated fundamental situation
  • The company has a good ESG score relative to its sector, according to Refinitiv.

Highlights: ERICSSON

  • The company's profit outlook over the next few years is a strong asset.
  • The company is in a robust financial situation considering its net cash and margin position.
  • Given the positive cash flows generated by its business, the company's valuation level is an asset.
  • Over the past four months, analysts' average price target has been revised upwards significantly.
  • Historically, the company has been releasing figures that are above expectations.

Weaknesses: ERICSSON

  • According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
  • The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 119.52 times its estimated earnings per share for the ongoing year.
  • The company appears highly valued given the size of its balance sheet.
  • For the past year, analysts have significantly revised downwards their profit estimates.
  • For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.
  • The three month average target prices set by analysts do not offer high potential in comparison with the current prices.
  • The average consensus view of analysts covering the stock has deteriorated over the past four months.
  • Over the past twelve months, analysts' consensus has been significantly revised downwards.
  • Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
  • The price targets of various analysts who make up the consensus differ significantly. This reflects different assessments and/or a difficulty in valuing the company.

Ratings Chart: ERICSSON

surperformance-ratings-chart ERICSSON
Source: Surperformance

ESG chart: ERICSSON

esg-ratings-chart ERICSSON
Source: Refinitiv

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Composite Fundamentals Composite Valuation Composite Momentum Capi. ($)
27.89B
239B
136B
81.88B
61.76B
41.97B
38.91B
23.42B
- 20.84B
19.98B
Average 69.16B
Weighted average by Cap.
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Investor Rating
Trading Rating
ESG Refinitiv
B-

Financials

Sales growth
Earnings Growth
EBITDA / Sales
Profitability
Finances

Valuation

P/E ratio
EV / Sales
Price to Book
Price to Free Cash Flow
Yield

Momentum

1 year Revenue revision
4 months Revenue revision
7 days Revenue revision
1 year EPS revision
4 months EPS revision

Consensus

Analyst Opinion
Potential Price Target
4m Target Price Revision
4m Revision of opinion
12m Revision of opinion

Business Predictability

Analyst Coverage
Divergence of Estimates
Divergence of analysts' opinions
Divergence of Target Price
Earnings quality

Environment

Emissions
Innovation
Use of resources

Social

Social commitment
Human Rights
Product liability
Human Resources

Governance

CSR Strategy
Management
Shareholders

Controversy

Controversy

Technical analysis

ST Timing
MT Timing
LT Timing
RSI
Bollinger Spread
Unusual volumes