Ericsson Stock Analysis (NASDAQ:ERIC)
Ericsson Analysis Video
View Ericsson stock analysis video. This is our ERIC analyst opinion covering the buy and sell arguments for ERIC stock.
Telefonaktiebolaget LM Ericsson Stock Rating (1.7/5)
Our Ericsson stock opinion is based on fundamentals of the company. This Ericsson stock analysis is based on latest Q2 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.
Should you buy ERIC stock?
- When compared with the Wireless Equipment industry average PS ratio of 2.8, the price-to-sales ratio of 0.9 for ERIC stock is attractive.
Should you sell ERIC stock?
- Ericsson revenue saw a decline of -15.9% YoY in 2017 Q1.
- Revenue declined at a CAGR of -5.9% over the last 5 years.
- Over the last twelve months, Ericsson posted an average operating loss margin of -4.2%.
- Ericsson posted an average Net loss of -4.9% in the last twelve months.
- PE ratio is meaningless for ERIC stock as the company has losses.
- Ericsson's negative ROIC of -5.8% indicates operational inefficiency.
- Ericsson has a negative return on equity of -7.7%. This indicates that the firm is inefficient at generating profits.
- The company has a negative free cash flow margin of -7.2%.