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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 8/10

vs
industry
vs
history
Cash to Debt 3.03
ERIC's Cash to Debt is ranked higher than
73% of the 711 Companies
in the Global Communication Equipment industry.

( Industry Median: 2.35 vs. ERIC: 3.03 )
ERIC' s 10-Year Cash to Debt Range
Min: 0.52   Max: No Debt
Current: 3.03

Equity to Asset 0.52
ERIC's Equity to Asset is ranked higher than
61% of the 691 Companies
in the Global Communication Equipment industry.

( Industry Median: 0.57 vs. ERIC: 0.52 )
ERIC' s 10-Year Equity to Asset Range
Min: 0.27   Max: 0.56
Current: 0.52

0.27
0.56
Interest Coverage 8.53
ERIC's Interest Coverage is ranked higher than
53% of the 450 Companies
in the Global Communication Equipment industry.

( Industry Median: 138.56 vs. ERIC: 8.53 )
ERIC' s 10-Year Interest Coverage Range
Min: 3.82   Max: 25.27
Current: 8.53

3.82
25.27
F-Score: 7
Z-Score: 2.98
M-Score: -2.64
WACC vs ROIC
7.66%
12.90%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 7.37
ERIC's Operating margin (%) is ranked higher than
83% of the 704 Companies
in the Global Communication Equipment industry.

( Industry Median: 3.46 vs. ERIC: 7.37 )
ERIC' s 10-Year Operating margin (%) Range
Min: -14.61   Max: 21.93
Current: 7.37

-14.61
21.93
Net-margin (%) 5.07
ERIC's Net-margin (%) is ranked higher than
77% of the 704 Companies
in the Global Communication Equipment industry.

( Industry Median: 3.32 vs. ERIC: 5.07 )
ERIC' s 10-Year Net-margin (%) Range
Min: -13.04   Max: 16.02
Current: 5.07

-13.04
16.02
ROE (%) 8.20
ERIC's ROE (%) is ranked higher than
78% of the 698 Companies
in the Global Communication Equipment industry.

( Industry Median: 5.05 vs. ERIC: 8.20 )
ERIC' s 10-Year ROE (%) Range
Min: -26.77   Max: 27.08
Current: 8.2

-26.77
27.08
ROA (%) 4.22
ERIC's ROA (%) is ranked higher than
76% of the 712 Companies
in the Global Communication Equipment industry.

( Industry Median: 2.90 vs. ERIC: 4.22 )
ERIC' s 10-Year ROA (%) Range
Min: -8.47   Max: 12.36
Current: 4.22

-8.47
12.36
ROC (Joel Greenblatt) (%) 42.10
ERIC's ROC (Joel Greenblatt) (%) is ranked higher than
90% of the 711 Companies
in the Global Communication Equipment industry.

( Industry Median: 9.45 vs. ERIC: 42.10 )
ERIC' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -40.09   Max: 377.36
Current: 42.1

-40.09
377.36
Revenue Growth (3Y)(%) 3.50
ERIC's Revenue Growth (3Y)(%) is ranked higher than
71% of the 580 Companies
in the Global Communication Equipment industry.

( Industry Median: 3.20 vs. ERIC: 3.50 )
ERIC' s 10-Year Revenue Growth (3Y)(%) Range
Min: -40.2   Max: 20
Current: 3.5

-40.2
20
EBITDA Growth (3Y)(%) -11.50
ERIC's EBITDA Growth (3Y)(%) is ranked higher than
66% of the 415 Companies
in the Global Communication Equipment industry.

( Industry Median: -2.40 vs. ERIC: -11.50 )
ERIC' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -76.6   Max: 219.6
Current: -11.5

-76.6
219.6
EPS Growth (3Y)(%) 2.20
ERIC's EPS Growth (3Y)(%) is ranked higher than
78% of the 376 Companies
in the Global Communication Equipment industry.

( Industry Median: -3.80 vs. ERIC: 2.20 )
ERIC' s 10-Year EPS Growth (3Y)(%) Range
Min: -48.3   Max: 32.7
Current: 2.2

-48.3
32.7
» ERIC's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2014

ERIC Guru Trades in Q1 2014

NWQ Managers 730,375 sh (+18.72%)
John Buckingham 481,178 sh (+3.26%)
Charles Brandes 7,379,377 sh (+1.68%)
Dodge & Cox 2,001,374 sh (+0.84%)
Mario Gabelli 87,000 sh (unchged)
Manning & Napier Advisors, Inc 358,926 sh (-1.78%)
Ken Fisher 418,987 sh (-2.21%)
PRIMECAP Management 18,959,214 sh (-25.56%)
Jim Simons 2,753,701 sh (-37.28%)
Steven Cohen 15,024 sh (-38.18%)
» More
Q2 2014

ERIC Guru Trades in Q2 2014

HOTCHKIS & WILEY 14,026,203 sh (New)
PRIMECAP Management 21,010,814 sh (+10.82%)
Manning & Napier Advisors, Inc 388,275 sh (+8.18%)
Charles Brandes 7,772,102 sh (+5.32%)
John Buckingham 492,626 sh (+2.38%)
Ken Fisher 428,636 sh (+2.3%)
Dodge & Cox 2,042,574 sh (+2.06%)
NWQ Managers 733,850 sh (+0.48%)
Mario Gabelli 87,000 sh (unchged)
Jim Simons 1,217,700 sh (-55.78%)
» More
Q3 2014

ERIC Guru Trades in Q3 2014

Joel Greenblatt 11,589 sh (New)
David Dreman 3,111 sh (New)
PRIMECAP Management 32,117,814 sh (+52.86%)
Manning & Napier Advisors, Inc 470,842 sh (+21.27%)
HOTCHKIS & WILEY 16,782,838 sh (+19.65%)
Charles Brandes 8,052,282 sh (+3.6%)
Dodge & Cox 2,098,184 sh (+2.72%)
John Buckingham 498,117 sh (+1.11%)
Mario Gabelli 87,000 sh (unchged)
Jim Simons 1,202,100 sh (-1.28%)
Ken Fisher 403,609 sh (-5.84%)
NWQ Managers 558,600 sh (-23.88%)
» More
Q4 2014

ERIC Guru Trades in Q4 2014

PRIMECAP Management 49,407,726 sh (+53.83%)
HOTCHKIS & WILEY 25,212,987 sh (+50.23%)
Manning & Napier Advisors, Inc 492,028 sh (+4.5%)
John Buckingham 505,076 sh (+1.4%)
Dodge & Cox 2,122,034 sh (+1.14%)
Joel Greenblatt 11,592 sh (+0.03%)
David Dreman Sold Out
Ken Fisher 401,456 sh (-0.53%)
Charles Brandes 7,492,945 sh (-6.95%)
NWQ Managers 518,600 sh (-7.16%)
Jim Simons 794,400 sh (-33.92%)
Mario Gabelli 40,000 sh (-54.02%)
» More
» Details

Insider Trades

Latest Guru Trades with ERIC

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
HOTCHKIS & WILEY 2014-12-31 Add 50.23%0.37%$11.41 - $12.69 $ 12.827%25212987
PRIMECAP Management 2014-12-31 Add 53.83%0.21%$11.41 - $12.69 $ 12.827%49407726
David Dreman 2014-12-31 Sold Out $11.41 - $12.69 $ 12.826%0
Mario Gabelli 2014-12-31 Reduce -54.02%$11.41 - $12.69 $ 12.827%40000
PRIMECAP Management 2014-09-30 Add 52.86%0.15%$11.54 - $13.24 $ 12.823%32117814
HOTCHKIS & WILEY 2014-09-30 Add 19.65%0.13%$11.54 - $13.24 $ 12.823%16782838
NWQ Managers 2014-09-30 Reduce -23.88%0.02%$11.54 - $13.24 $ 12.823%558600
David Dreman 2014-09-30 New Buy$11.54 - $13.24 $ 12.823%3111
Joel Greenblatt 2014-09-30 New Buy$11.54 - $13.24 $ 12.823%11589
HOTCHKIS & WILEY 2014-06-30 New Buy0.6%$11.88 - $13.59 $ 12.823%14026203
PRIMECAP Management 2014-03-31 Reduce -25.56%0.09%$11.54 - $13.16 $ 12.823%18959214
Premium More recent guru trades are included for Premium Members only!!
Premium More recent guru trades are included for USA Subscribe Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Ratios

vs
industry
vs
history
P/E(ttm) 23.90
ERIC's P/E(ttm) is ranked higher than
80% of the 767 Companies
in the Global Communication Equipment industry.

( Industry Median: 68.20 vs. ERIC: 23.90 )
ERIC' s 10-Year P/E(ttm) Range
Min: 9.13   Max: 92.59
Current: 23.9

9.13
92.59
Forward P/E 14.35
ERIC's Forward P/E is ranked higher than
91% of the 767 Companies
in the Global Communication Equipment industry.

( Industry Median: 0.00 vs. ERIC: 14.35 )
N/A
PE(NRI) 23.70
ERIC's PE(NRI) is ranked higher than
80% of the 767 Companies
in the Global Communication Equipment industry.

( Industry Median: 71.10 vs. ERIC: 23.70 )
ERIC' s 10-Year PE(NRI) Range
Min: 9.13   Max: 92.31
Current: 23.7

9.13
92.31
P/B 2.30
ERIC's P/B is ranked higher than
66% of the 767 Companies
in the Global Communication Equipment industry.

( Industry Median: 2.35 vs. ERIC: 2.30 )
ERIC' s 10-Year P/B Range
Min: 1.05   Max: 6.22
Current: 2.3

1.05
6.22
P/S 1.50
ERIC's P/S is ranked higher than
68% of the 767 Companies
in the Global Communication Equipment industry.

( Industry Median: 1.59 vs. ERIC: 1.50 )
ERIC' s 10-Year P/S Range
Min: 0.72   Max: 3.3
Current: 1.5

0.72
3.3
PFCF 16.30
ERIC's PFCF is ranked higher than
87% of the 767 Companies
in the Global Communication Equipment industry.

( Industry Median: 246.00 vs. ERIC: 16.30 )
ERIC' s 10-Year PFCF Range
Min: 6.26   Max: 208.75
Current: 16.3

6.26
208.75
POCF 13.25
ERIC's POCF is ranked higher than
81% of the 767 Companies
in the Global Communication Equipment industry.

( Industry Median: 24.93 vs. ERIC: 13.25 )
ERIC' s 10-Year POCF Range
Min: 4.85   Max: 55.53
Current: 13.25

4.85
55.53
EV-to-EBIT 13.77
ERIC's EV-to-EBIT is ranked higher than
84% of the 767 Companies
in the Global Communication Equipment industry.

( Industry Median: 72.45 vs. ERIC: 13.77 )
ERIC' s 10-Year EV-to-EBIT Range
Min: -98.7   Max: 64
Current: 13.77

-98.7
64
Shiller P/E 33.20
ERIC's Shiller P/E is ranked higher than
85% of the 767 Companies
in the Global Communication Equipment industry.

( Industry Median: 0.00 vs. ERIC: 33.20 )
ERIC' s 10-Year Shiller P/E Range
Min: 10.77   Max: 182.44
Current: 33.2

10.77
182.44
Current Ratio 2.06
ERIC's Current Ratio is ranked higher than
66% of the 703 Companies
in the Global Communication Equipment industry.

( Industry Median: 2.11 vs. ERIC: 2.06 )
ERIC' s 10-Year Current Ratio Range
Min: 1.54   Max: 2.9
Current: 2.06

1.54
2.9
Quick Ratio 1.74
ERIC's Quick Ratio is ranked higher than
70% of the 703 Companies
in the Global Communication Equipment industry.

( Industry Median: 1.71 vs. ERIC: 1.74 )
ERIC' s 10-Year Quick Ratio Range
Min: 1.14   Max: 2.54
Current: 1.74

1.14
2.54
Days Inventory 65.87
ERIC's Days Inventory is ranked higher than
74% of the 767 Companies
in the Global Communication Equipment industry.

( Industry Median: 74.00 vs. ERIC: 65.87 )
ERIC' s 10-Year Days Inventory Range
Min: 56.49   Max: 101.03
Current: 65.87

56.49
101.03
Days Sales Outstanding 124.71
ERIC's Days Sales Outstanding is ranked higher than
56% of the 767 Companies
in the Global Communication Equipment industry.

( Industry Median: 79.70 vs. ERIC: 124.71 )
ERIC' s 10-Year Days Sales Outstanding Range
Min: 90.29   Max: 132.58
Current: 124.71

90.29
132.58

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 3.60
ERIC's Dividend Yield is ranked higher than
89% of the 378 Companies
in the Global Communication Equipment industry.

( Industry Median: 1.78 vs. ERIC: 3.60 )
ERIC' s 10-Year Dividend Yield Range
Min: 1.58   Max: 5.68
Current: 3.6

1.58
5.68
Dividend Payout 0.71
ERIC's Dividend Payout is ranked higher than
82% of the 767 Companies
in the Global Communication Equipment industry.

( Industry Median: 0.00 vs. ERIC: 0.71 )
ERIC' s 10-Year Dividend Payout Range
Min: 1.24   Max: 7.35
Current: 0.71

1.24
7.35
Dividend growth (3y) 11.20
ERIC's Dividend growth (3y) is ranked higher than
85% of the 196 Companies
in the Global Communication Equipment industry.

( Industry Median: 8.00 vs. ERIC: 11.20 )
ERIC' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 11.2
Current: 11.2

0
11.2
Yield on cost (5-Year) 4.46
ERIC's Yield on cost (5-Year) is ranked higher than
91% of the 385 Companies
in the Global Communication Equipment industry.

( Industry Median: 2.01 vs. ERIC: 4.46 )
ERIC' s 10-Year Yield on cost (5-Year) Range
Min: 1.96   Max: 7.04
Current: 4.46

1.96
7.04
Share Buyback Rate -0.30
ERIC's Share Buyback Rate is ranked higher than
79% of the 486 Companies
in the Global Communication Equipment industry.

( Industry Median: -0.90 vs. ERIC: -0.30 )
ERIC' s 10-Year Share Buyback Rate Range
Min: 0.3   Max: -26
Current: -0.3

Valuation & Return

vs
industry
vs
history
Price/Net Current Asset Value 5.86
ERIC's Price/Net Current Asset Value is ranked higher than
72% of the 767 Companies
in the Global Communication Equipment industry.

( Industry Median: 0.00 vs. ERIC: 5.86 )
ERIC' s 10-Year Price/Net Current Asset Value Range
Min: 3.29   Max: 46.21
Current: 5.86

3.29
46.21
Price/Tangible Book 3.65
ERIC's Price/Tangible Book is ranked higher than
65% of the 767 Companies
in the Global Communication Equipment industry.

( Industry Median: 3.78 vs. ERIC: 3.65 )
ERIC' s 10-Year Price/Tangible Book Range
Min: 0.94   Max: 16.73
Current: 3.65

0.94
16.73
Price/DCF (Projected) 1.31
ERIC's Price/DCF (Projected) is ranked higher than
85% of the 767 Companies
in the Global Communication Equipment industry.

( Industry Median: 20.72 vs. ERIC: 1.31 )
ERIC' s 10-Year Price/DCF (Projected) Range
Min: 0.36   Max: 13.84
Current: 1.31

0.36
13.84
Price/Median PS Value 1.22
ERIC's Price/Median PS Value is ranked higher than
66% of the 767 Companies
in the Global Communication Equipment industry.

( Industry Median: 1.22 vs. ERIC: 1.22 )
ERIC' s 10-Year Price/Median PS Value Range
Min: 0.18   Max: 3.77
Current: 1.22

0.18
3.77
Price/Peter Lynch Fair Value 2.27
ERIC's Price/Peter Lynch Fair Value is ranked higher than
93% of the 767 Companies
in the Global Communication Equipment industry.

( Industry Median: 0.00 vs. ERIC: 2.27 )
ERIC' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.05   Max: 8.74
Current: 2.27

0.05
8.74
Price/Graham Number 1.97
ERIC's Price/Graham Number is ranked higher than
78% of the 767 Companies
in the Global Communication Equipment industry.

( Industry Median: 4.59 vs. ERIC: 1.97 )
ERIC' s 10-Year Price/Graham Number Range
Min: 1.01   Max: 7.15
Current: 1.97

1.01
7.15
Earnings Yield (Greenblatt) 7.30
ERIC's Earnings Yield (Greenblatt) is ranked higher than
82% of the 692 Companies
in the Global Communication Equipment industry.

( Industry Median: 2.40 vs. ERIC: 7.30 )
ERIC' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1.6   Max: 29.1
Current: 7.3

1.6
29.1
Forward Rate of Return (Yacktman) 3.43
ERIC's Forward Rate of Return (Yacktman) is ranked higher than
69% of the 340 Companies
in the Global Communication Equipment industry.

( Industry Median: 8.61 vs. ERIC: 3.43 )
ERIC' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -9.6   Max: 26.7
Current: 3.43

-9.6
26.7

Business Description

Industry: Communication Equipment » Communication Equipment
Compare:PTFRY, QCOM, CSCO, NOK, JNPR » details
Traded in other countries:ERIXF.USA, 0O86.UK, ERIBR.Finland, 0O87.UK, ERIC B.Sweden, ERIC A.Sweden, ERCG.Germany, ERCB.Germany, ERCA.Germany, ERIAF.USA, ERIC N.Mexico, ERICB.Switzerland,
LM Ericsson Telephone Company was incorporated on August 18, 1918. It is a provider of communications networks, telecom services and support solutions. Its segments include Networks, Global Services, Support Solutions and ST-Ericsson. The Networks segment delivers products and solutions for mobile access, IP and transport networks and core networks. It offers Radio access solutions, Switching and IMS solutions and Operations Support Systems. The Global Services segment delivers managed services, product-related services and consulting and systems integration services. Managed services offer solutions for designing, building, operating and managing the day-to-day operations of the customer's network or solution, maintenance, network sharing solutions as well as shared solutions such as hosting of platforms and applications. Product-related services offers Services to expand, upgrade, restructure networks, network-rollout services, customer support and network optimization services. Consulting and Systems Integration offers technology and operational consulting, integration of multi-vendor equipment, design and integration of new solutions and transforming programs. The Support Solutions segment provides enablers and applications for operators. It offers Operations Support Systems, Business Support Systems, TV solutions and M-Commerce solutions. The ST-Ericsson segment is a joint venture, it offers modems and ModAps (integrated modem and application processor platforms) for device manufacturers. The Company is subject to certain environmental, health and safety laws and regulations that affect its operations, facilities and products in each of the jurisdictions in which it operates.
» More Articles for ERIC

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