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 (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%.