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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 3.06
ERIXF's Cash to Debt is ranked higher than
62% of the 632 Companies
in the Global Communication Equipment industry.

( Industry Median: 4.25 vs. ERIXF: 3.06 )
ERIXF' s 10-Year Cash to Debt Range
Min: 0.52   Max: No Debt
Current: 3.06

Equity to Asset 0.52
ERIXF's Equity to Asset is ranked higher than
56% of the 614 Companies
in the Global Communication Equipment industry.

( Industry Median: 0.57 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 higher than
50% of the 379 Companies
in the Global Communication Equipment industry.

( Industry Median: 124.89 vs. ERIXF: 12.64 )
ERIXF' s 10-Year Interest Coverage Range
Min: 3.82   Max: 20.04
Current: 12.64

3.82
20.04
F-Score: 7
Z-Score: 2.69
M-Score: -2.73
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 (%) 7.85
ERIXF's Operating margin (%) is ranked higher than
83% of the 622 Companies
in the Global Communication Equipment industry.

( Industry Median: 3.27 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
78% of the 622 Companies
in the Global Communication Equipment industry.

( Industry Median: 2.61 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
80% of the 613 Companies
in the Global Communication Equipment industry.

( Industry Median: 5.00 vs. ERIXF: 8.56 )
ERIXF' s 10-Year ROE (%) Range
Min: -31.01   Max: 24.61
Current: 8.56

-31.01
24.61
ROA (%) 4.46
ERIXF's ROA (%) is ranked higher than
78% of the 628 Companies
in the Global Communication Equipment industry.

( Industry Median: 2.62 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
90% of the 625 Companies
in the Global Communication Equipment industry.

( Industry Median: 10.85 vs. ERIXF: 45.53 )
ERIXF' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -59.71   Max: 265.94
Current: 45.53

-59.71
265.94
Revenue Growth (%) 3.50
ERIXF's Revenue Growth (%) is ranked higher than
69% of the 526 Companies
in the Global Communication Equipment industry.

( Industry Median: 2.90 vs. ERIXF: 3.50 )
ERIXF' s 10-Year Revenue Growth (%) Range
Min: -40.2   Max: 20
Current: 3.5

-40.2
20
EBITDA Growth (%) 2.40
ERIXF's EBITDA Growth (%) is ranked higher than
70% of the 395 Companies
in the Global Communication Equipment industry.

( Industry Median: 0.90 vs. ERIXF: 2.40 )
ERIXF' s 10-Year EBITDA Growth (%) Range
Min: -76.6   Max: 239.9
Current: 2.4

-76.6
239.9
EPS Growth (%) 2.20
ERIXF's EPS Growth (%) is ranked higher than
73% of the 367 Companies
in the Global Communication Equipment industry.

( Industry Median: -1.40 vs. ERIXF: 2.20 )
ERIXF' s 10-Year EPS Growth (%) Range
Min: -48.3   Max: 32.7
Current: 2.2

-48.3
32.7
» ERIXF's 10-Y Financials

Financials


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

» Details

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Ratios

vs
industry
vs
history
P/E(ttm) 18.50
ERIXF's P/E(ttm) is ranked higher than
81% of the 680 Companies
in the Global Communication Equipment industry.

( Industry Median: 49.60 vs. ERIXF: 18.50 )
ERIXF' s 10-Year P/E(ttm) Range
Min: 9.13   Max: 92.59
Current: 18.5

9.13
92.59
P/B 1.90
ERIXF's P/B is ranked higher than
65% of the 680 Companies
in the Global Communication Equipment industry.

( Industry Median: 2.19 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 1.24
ERIXF's P/S is ranked higher than
60% of the 680 Companies
in the Global Communication Equipment industry.

( Industry Median: 1.40 vs. ERIXF: 1.24 )
ERIXF' s 10-Year P/S Range
Min: 0.71   Max: 3.3
Current: 1.24

0.71
3.3
PFCF 11.80
ERIXF's PFCF is ranked higher than
90% of the 680 Companies
in the Global Communication Equipment industry.

( Industry Median: 9999.00 vs. ERIXF: 11.80 )
ERIXF' s 10-Year PFCF Range
Min: 5.98   Max: 123.7
Current: 11.8

5.98
123.7
EV-to-EBIT 10.65
ERIXF's EV-to-EBIT is ranked higher than
89% of the 680 Companies
in the Global Communication Equipment industry.

( Industry Median: 45.16 vs. ERIXF: 10.65 )
ERIXF' s 10-Year EV-to-EBIT Range
Min: 3.4   Max: 60.3
Current: 10.65

3.4
60.3
PEG 1.00
ERIXF's PEG is ranked higher than
93% of the 680 Companies
in the Global Communication Equipment industry.

( Industry Median: 9999.00 vs. ERIXF: 1.00 )
ERIXF' s 10-Year PEG Range
Min: 0.33   Max: 33.72
Current: 1

0.33
33.72
Shiller P/E 25.90
ERIXF's Shiller P/E is ranked higher than
84% of the 680 Companies
in the Global Communication Equipment industry.

( Industry Median: 9999.00 vs. ERIXF: 25.90 )
ERIXF' s 10-Year Shiller P/E Range
Min: 10.8   Max: 178.48
Current: 25.9

10.8
178.48
Current Ratio 2.02
ERIXF's Current Ratio is ranked higher than
62% of the 490 Companies
in the Global Communication Equipment industry.

( Industry Median: 2.13 vs. ERIXF: 2.02 )
ERIXF' s 10-Year Current Ratio Range
Min: 1.54   Max: 2.99
Current: 2.02

1.54
2.99
Quick Ratio 1.72
ERIXF's Quick Ratio is ranked higher than
66% of the 490 Companies
in the Global Communication Equipment industry.

( Industry Median: 1.66 vs. ERIXF: 1.72 )
ERIXF' s 10-Year Quick Ratio Range
Min: 1.14   Max: 2.69
Current: 1.72

1.14
2.69

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 3.68
ERIXF's Dividend Yield is ranked higher than
82% of the 341 Companies
in the Global Communication Equipment industry.

( Industry Median: 1.79 vs. ERIXF: 3.68 )
ERIXF' s 10-Year Dividend Yield Range
Min: 1.6   Max: 4.02
Current: 3.68

1.6
4.02
Dividend Payout 0.70
ERIXF's Dividend Payout is ranked higher than
79% of the 680 Companies
in the Global Communication Equipment industry.

( Industry Median: 9999.00 vs. ERIXF: 0.70 )
ERIXF' s 10-Year Dividend Payout Range
Min: 1.64   Max: 7.12
Current: 0.7

1.64
7.12
Dividend growth (3y) 11.20
ERIXF's Dividend growth (3y) is ranked higher than
85% of the 168 Companies
in the Global Communication Equipment industry.

( Industry Median: -1.90 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) 4.31
ERIXF's Yield on cost (5-Year) is ranked higher than
82% of the 348 Companies
in the Global Communication Equipment industry.

( Industry Median: 2.00 vs. ERIXF: 4.31 )
ERIXF' s 10-Year Yield on cost (5-Year) Range
Min: 1.86   Max: 4.68
Current: 4.31

1.86
4.68
Share Buyback Rate -0.30
ERIXF's Share Buyback Rate is ranked higher than
76% of the 383 Companies
in the Global Communication Equipment industry.

( Industry Median: -1.00 vs. ERIXF: -0.30 )
ERIXF' 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 13.90
ERIXF's Price/Net Current Asset Value is ranked higher than
77% of the 680 Companies
in the Global Communication Equipment industry.

( Industry Median: 9999.00 vs. ERIXF: 13.90 )
ERIXF' s 10-Year Price/Net Current Asset Value Range
Min: 8.7   Max: 1500
Current: 13.9

8.7
1500
Price/Tangible Book 3.10
ERIXF's Price/Tangible Book is ranked higher than
60% of the 680 Companies
in the Global Communication Equipment industry.

( Industry Median: 3.30 vs. ERIXF: 3.10 )
ERIXF' s 10-Year Price/Tangible Book Range
Min: 0.52   Max: 24.38
Current: 3.1

0.52
24.38
Price/DCF (Projected) 1.10
ERIXF's Price/DCF (Projected) is ranked higher than
88% of the 680 Companies
in the Global Communication Equipment industry.

( Industry Median: 9999.00 vs. ERIXF: 1.10 )
ERIXF' s 10-Year Price/DCF (Projected) Range
Min: 0.58   Max: 45.63
Current: 1.1

0.58
45.63
Price/Median PS Value 1.00
ERIXF's Price/Median PS Value is ranked higher than
77% of the 680 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: 5.54
Current: 1

0.18
5.54
Price/Peter Lynch Fair Value 1.50
ERIXF's Price/Peter Lynch Fair Value is ranked higher than
93% of the 680 Companies
in the Global Communication Equipment industry.

( Industry Median: 9999.00 vs. ERIXF: 1.50 )
ERIXF' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.07   Max: 8.74
Current: 1.5

0.07
8.74
Price/Graham Number 1.60
ERIXF's Price/Graham Number is ranked higher than
79% of the 680 Companies
in the Global Communication Equipment industry.

( Industry Median: 3.80 vs. ERIXF: 1.60 )
ERIXF' s 10-Year Price/Graham Number Range
Min: 0.45   Max: 10.42
Current: 1.6

0.45
10.42
Earnings Yield (Greenblatt) 9.50
ERIXF's Earnings Yield (Greenblatt) is ranked higher than
82% of the 568 Companies
in the Global Communication Equipment industry.

( Industry Median: 5.30 vs. ERIXF: 9.50 )
ERIXF' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1.7   Max: 29.2
Current: 9.5

1.7
29.2
Forward Rate of Return (Yacktman) 14.54
ERIXF's Forward Rate of Return (Yacktman) is ranked higher than
88% of the 458 Companies
in the Global Communication Equipment industry.

( Industry Median: 2.33 vs. ERIXF: 14.54 )
ERIXF' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -18.5   Max: 31.3
Current: 14.54

-18.5
31.3

Business Description

Industry: Communication Equipment » Communication Equipment
Compare: » details
Traded in other countries:ERIC.USA, 0O86.country, ERIBR.Finland, 0O87.country, 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.

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