Ericsson Stock Analysis (NASDAQ:ERIC)

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$6.49 $0.02 (0.31%) ERIC stock closing price Apr 28, 2017 (Closing)
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Ericsson
Updated on : Apr 28, 2017
previous close
ERIC 6.5 (0%)
NASDAQ 6047.6 (0%)
Closing Price On: Apr 28, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Wireless Equipment
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q1
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-5.9%
Operating Profit
Operating Margin:
-4.2%
Sector Average:
5.3%
5 Quarter Net Profit
Net Margins
2017-Q1
%
LTM Margin
Debt/Equity Ratio
Debt:
4.19B
Debt/Equity Ratio:
 0.29
Compared to the industry
Cash Flow
Operating cash flow:
-$172.8M
Net Income:
-$1.22B
Dividend Yield
ERIC dividend yield:
5.7%
PROS      CONS
High Dividend Yield
PS Valuation
Long Term Growth
Operating Margins
Net Margins
High Debt Burden
ROIC
ROE
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PE: N/A
ERIC PS :
0.8
Industry PS :
2.7
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
-5.8%
Return on Equity:
-7.7%
Free Cash Flow Margin:
-7.2%
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Ericsson Analysis Video

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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 (2.2/5)

Our Ericsson stock opinion is based on fundamentals of the company. This Ericsson stock analysis is based on latest Q1 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 2.7, the price-to-sales ratio of 0.8 for ERIC stock is attractive.
  • The company has a healthy dividend yield of 5.7%.

Should you sell ERIC stock?

  • The company saw an average annual sales decline of -5.9% in sales over the last 5 years.
  • Over the last twelve months, Ericsson posted an average operating loss margin of -4.2%.
  • Ericsson registered an average TTM Net loss of -4.9%.
  • With a debt/equity ratio of  0.29, Ericsson is highly leveraged in comparison to Computer and Technology peers.
  • 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 ROE (Return On Equity) of -7.7%, indicating the company is not profitable.
  • The company has negative Free Cash Flows (FCF), with a negative FCF margin of -7.2%.

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