Switch to:

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 2.69
ERIXF's Cash to Debt is ranked higher than
58% of the 637 Companies
in the Global Communication Equipment industry.

( Industry Median: 10.14 vs. ERIXF: 2.69 )
ERIXF' s 10-Year Cash to Debt Range
Min: 0.72   Max: 4.27
Current: 2.69

0.72
4.27
Equity to Asset 0.52
ERIXF's Equity to Asset is ranked higher than
55% of the 620 Companies
in the Global Communication Equipment industry.

( Industry Median: 0.59 vs. ERIXF: 0.52 )
ERIXF' s 10-Year Equity to Asset Range
Min: 0.27   Max: 0.56
Current: 0.52

0.27
0.56
Interest Coverage 12.64
ERIXF's Interest Coverage is ranked lower than
52% of the 397 Companies
in the Global Communication Equipment industry.

( Industry Median: 109.07 vs. ERIXF: 12.64 )
ERIXF' s 10-Year Interest Coverage Range
Min: 3.82   Max: 25.27
Current: 12.64

3.82
25.27
F-Score: 8
Z-Score: 3.23
M-Score: -2.54
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 : 8/10

vs
industry
vs
history
Operating margin (%) 7.85
ERIXF's Operating margin (%) is ranked higher than
82% of the 620 Companies
in the Global Communication Equipment industry.

( Industry Median: 3.31 vs. ERIXF: 7.85 )
ERIXF' s 10-Year Operating margin (%) Range
Min: -14.61   Max: 21.93
Current: 7.85

-14.61
21.93
Net-margin (%) 5.28
ERIXF's Net-margin (%) is ranked higher than
75% of the 620 Companies
in the Global Communication Equipment industry.

( Industry Median: 3.04 vs. ERIXF: 5.28 )
ERIXF' s 10-Year Net-margin (%) Range
Min: -13.04   Max: 16.02
Current: 5.28

-13.04
16.02
ROE (%) 8.56
ERIXF's ROE (%) is ranked higher than
78% of the 611 Companies
in the Global Communication Equipment industry.

( Industry Median: 5.70 vs. ERIXF: 8.56 )
ERIXF' s 10-Year ROE (%) Range
Min: -31.01   Max: 23.93
Current: 8.56

-31.01
23.93
ROA (%) 4.46
ERIXF's ROA (%) is ranked higher than
76% of the 625 Companies
in the Global Communication Equipment industry.

( Industry Median: 3.19 vs. ERIXF: 4.46 )
ERIXF' s 10-Year ROA (%) Range
Min: -9.13   Max: 12.21
Current: 4.46

-9.13
12.21
ROC (Joel Greenblatt) (%) 45.53
ERIXF's ROC (Joel Greenblatt) (%) is ranked higher than
88% of the 620 Companies
in the Global Communication Equipment industry.

( Industry Median: 11.39 vs. ERIXF: 45.53 )
ERIXF' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -59.71   Max: 494.91
Current: 45.53

-59.71
494.91
Revenue Growth (%) 3.10
ERIXF's Revenue Growth (%) is ranked higher than
68% of the 512 Companies
in the Global Communication Equipment industry.

( Industry Median: 3.10 vs. ERIXF: 3.10 )
ERIXF' s 10-Year Revenue Growth (%) Range
Min: -72.2   Max: 157.7
Current: 3.1

-72.2
157.7
EBITDA Growth (%) 0.80
ERIXF's EBITDA Growth (%) is ranked higher than
68% of the 356 Companies
in the Global Communication Equipment industry.

( Industry Median: 2.50 vs. ERIXF: 0.80 )
ERIXF' s 10-Year EBITDA Growth (%) Range
Min: -89.1   Max: 219.6
Current: 0.8

-89.1
219.6
EPS Growth (%) 1.90
ERIXF's EPS Growth (%) is ranked higher than
70% of the 335 Companies
in the Global Communication Equipment industry.

( Industry Median: 3.10 vs. ERIXF: 1.90 )
ERIXF' s 10-Year EPS Growth (%) Range
Min: -48.3   Max: 158.1
Current: 1.9

-48.3
158.1
» ERIXF's 10-Y Financials

Financials


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

» Details

Insider Trades

Latest Guru Trades with ERIXF



No Insider Trades Found!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Ratios

vs
industry
vs
history
P/E(ttm) 22.50
ERIXF's P/E(ttm) is ranked higher than
62% of the 433 Companies
in the Global Communication Equipment industry.

( Industry Median: 22.80 vs. ERIXF: 22.50 )
ERIXF' s 10-Year P/E(ttm) Range
Min: 9.17   Max: 86.65
Current: 22.5

9.17
86.65
P/B 1.90
ERIXF's P/B is ranked higher than
59% of the 603 Companies
in the Global Communication Equipment industry.

( Industry Median: 1.96 vs. ERIXF: 1.90 )
ERIXF' s 10-Year P/B Range
Min: 1.05   Max: 6.22
Current: 1.9

1.05
6.22
P/S 1.25
ERIXF's P/S is ranked higher than
59% of the 644 Companies
in the Global Communication Equipment industry.

( Industry Median: 1.22 vs. ERIXF: 1.25 )
ERIXF' s 10-Year P/S Range
Min: 0.27   Max: 3.3
Current: 1.25

0.27
3.3
PFCF 22.90
ERIXF's PFCF is ranked higher than
63% of the 335 Companies
in the Global Communication Equipment industry.

( Industry Median: 21.60 vs. ERIXF: 22.90 )
ERIXF' s 10-Year PFCF Range
Min: 6.21   Max: 80.29
Current: 22.9

6.21
80.29
EV-to-EBIT 12.20
ERIXF's EV-to-EBIT is ranked higher than
78% of the 485 Companies
in the Global Communication Equipment industry.

( Industry Median: 19.61 vs. ERIXF: 12.20 )
ERIXF' s 10-Year EV-to-EBIT Range
Min: 3.4   Max: 63.6
Current: 12.2

3.4
63.6
PEG 5.00
ERIXF's PEG is ranked lower than
53% of the 203 Companies
in the Global Communication Equipment industry.

( Industry Median: 1.80 vs. ERIXF: 5.00 )
ERIXF' s 10-Year PEG Range
Min: 0.39   Max: 14.5
Current: 5

0.39
14.5
Shiller P/E 27.00
ERIXF's Shiller P/E is ranked higher than
60% of the 248 Companies
in the Global Communication Equipment industry.

( Industry Median: 23.91 vs. ERIXF: 27.00 )
ERIXF' s 10-Year Shiller P/E Range
Min: 10.84   Max: 28.07
Current: 27

10.84
28.07

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 3.48
ERIXF's Dividend Yield is ranked higher than
83% of the 318 Companies
in the Global Communication Equipment industry.

( Industry Median: 1.70 vs. ERIXF: 3.48 )
ERIXF' s 10-Year Dividend Yield Range
Min: 1.6   Max: 2.89
Current: 3.48

1.6
2.89
Dividend Payout 0.75
ERIXF's Dividend Payout is ranked lower than
53% of the 247 Companies
in the Global Communication Equipment industry.

( Industry Median: 0.36 vs. ERIXF: 0.75 )
ERIXF' s 10-Year Dividend Payout Range
Min: 0.41   Max: 1.62
Current: 0.75

0.41
1.62
Dividend growth (3y) 11.20
ERIXF's Dividend growth (3y) is ranked higher than
84% of the 119 Companies
in the Global Communication Equipment industry.

( Industry Median: 1.60 vs. ERIXF: 11.20 )
ERIXF' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 11.2
Current: 11.2

0
11.2
Yield on cost (5-Year) 3.96
ERIXF's Yield on cost (5-Year) is ranked higher than
84% of the 326 Companies
in the Global Communication Equipment industry.

( Industry Median: 1.73 vs. ERIXF: 3.96 )
ERIXF' s 10-Year Yield on cost (5-Year) Range
Min: 1.86   Max: 3.37
Current: 3.96

1.86
3.37
Share Buyback Rate -0.60
ERIXF's Share Buyback Rate is ranked higher than
74% of the 427 Companies
in the Global Communication Equipment industry.

( Industry Median: -0.90 vs. ERIXF: -0.60 )
ERIXF' s 10-Year Share Buyback Rate Range
Min: 53.6   Max: -171.2
Current: -0.6

Valuation & Return

vs
industry
vs
history
Price/Net Current Asset Value 10.00
ERIXF's Price/Net Current Asset Value is ranked higher than
51% of the 284 Companies
in the Global Communication Equipment industry.

( Industry Median: 8.70 vs. ERIXF: 10.00 )
ERIXF' s 10-Year Price/Net Current Asset Value Range
Min: 8.7   Max: 27.68
Current: 10

8.7
27.68
Price/Tangible Book 3.10
ERIXF's Price/Tangible Book is ranked higher than
52% of the 548 Companies
in the Global Communication Equipment industry.

( Industry Median: 2.40 vs. ERIXF: 3.10 )
ERIXF' s 10-Year Price/Tangible Book Range
Min: 0.85   Max: 5.28
Current: 3.1

0.85
5.28
Price/DCF (Projected) 1.10
ERIXF's Price/DCF (Projected) is ranked higher than
76% of the 306 Companies
in the Global Communication Equipment industry.

( Industry Median: 1.30 vs. ERIXF: 1.10 )
ERIXF' s 10-Year Price/DCF (Projected) Range
Min: 0.58   Max: 204.76
Current: 1.1

0.58
204.76
Price/Median PS Value 1.00
ERIXF's Price/Median PS Value is ranked higher than
80% of the 596 Companies
in the Global Communication Equipment industry.

( Industry Median: 1.10 vs. ERIXF: 1.00 )
ERIXF' s 10-Year Price/Median PS Value Range
Min: 0.18   Max: 2.69
Current: 1

0.18
2.69
Price/Graham Number 1.80
ERIXF's Price/Graham Number is ranked higher than
62% of the 400 Companies
in the Global Communication Equipment industry.

( Industry Median: 1.70 vs. ERIXF: 1.80 )
ERIXF' s 10-Year Price/Graham Number Range
Min: 0.45   Max: 2.31
Current: 1.8

0.45
2.31
Earnings Yield (Greenblatt) 8.20
ERIXF's Earnings Yield (Greenblatt) is ranked higher than
79% of the 534 Companies
in the Global Communication Equipment industry.

( Industry Median: 4.70 vs. ERIXF: 8.20 )
ERIXF' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1.6   Max: 29.4
Current: 8.2

1.6
29.4
Forward Rate of Return (Yacktman) 2.11
ERIXF's Forward Rate of Return (Yacktman) is ranked higher than
75% of the 421 Companies
in the Global Communication Equipment industry.

( Industry Median: 1.28 vs. ERIXF: 2.11 )
ERIXF' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -13.1   Max: 25
Current: 2.11

-13.1
25

Business Description

Industry: Communication Equipment » Communication Equipment
Compare: » details
Traded in other countries:ERIC.USA, ERIBR.Finland, ERIC B.Sweden, ERIC A.Sweden, ERCG.Germany, ERCB.Germany, ERCA.Germany
LM Ericsson Telephone Company was incorporated on August 18, 1918, as a result of a merger between AB LM Ericsson & Co. and Stockholms Allmänna Telefon AB. The Company 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. In the Networks segment, the Company competes mainly with telecommunication equipment suppliers such as Alcatel-Lucent, Cisco, Huawei, Juniper, Nokia Siemens Networks, Samsung and ZTE. The Company also competes with local and regional manufacturers and providers of telecommunications equipment. It 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.

Personalized Checklist








Within your circle of competence?
Macro economic environment favorable?
High quality business?
Enough margin of safety with stocks?
Gurus are buying?
Insiders are buying?
Management capable and shareholder friendly?
Catalyst for stock price to appreciate?
Your level of confidence with the research?

Add Notes, Comments or Ask Questions

User Comments

No comment yet

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide