What is Telefonaktiebolaget L M Ericsson FCF Margin %?
Telefonaktiebolaget L M EricssonERIXF 59 FCF Margin % is 12.98% as of Mar. 2026, which is 91% above its 10-year median of 6.79. GuruFocus rates ERIXF with a GF Score™ of 59/100 and a GF Value™ of $7.38 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,468 Hardware companies, Telefonaktiebolaget L M Ericsson ranks better than 88.05% on this metric.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Telefonaktiebolaget L M Ericsson FCF Margin % Chart
For the Communication Equipment subindustry, Telefonaktiebolaget L M Ericsson's FCF Margin %, along with its competitors' market caps and FCF Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Telefonaktiebolaget L M Ericsson FCF Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Telefonaktiebolaget L M Ericsson's FCF Margin % distribution charts can be found below:
* The bar in red indicates where Telefonaktiebolaget L M Ericsson's FCF Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Telefonaktiebolaget L M Ericsson (ERIXF) has a FCF Margin % of 12.98% as of Mar. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Telefonaktiebolaget L M Ericsson and its competitors. This is 91% above median its historical median of 6.79. Over the past decade, Telefonaktiebolaget L M Ericsson's FCF Margin % has ranged from 0.65 to 17.19. According to the industry distribution chart, Telefonaktiebolaget L M Ericsson ranks #295 out of 2468 companies in the Hardware industry, placing it in the top 12%.
Is Telefonaktiebolaget L M Ericsson's FCF Margin % too high?
Telefonaktiebolaget L M Ericsson's current FCF Margin % of 12.98% is 91% above median its 10-year median of 6.79. Over the past 10 years, this metric has ranged from a low of 0.65 to a high of 17.19. The Hardware industry median FCF Margin % is 0.63. Telefonaktiebolaget L M Ericsson's value of 12.98% is 1960.3% above this industry median. Based on the distribution chart, Telefonaktiebolaget L M Ericsson ranks #295 out of 2468 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Telefonaktiebolaget L M Ericsson has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telefonaktiebolaget L M Ericsson's FCF Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Telefonaktiebolaget L M Ericsson ranks #295 out of 2468 companies for FCF Margin %. This places Telefonaktiebolaget L M Ericsson in the top 12% of its industry — outperforming the majority of peers. The industry median FCF Margin % is 0.63. Telefonaktiebolaget L M Ericsson's value of 12.98% is 1960.3% above this benchmark. Historically, Telefonaktiebolaget L M Ericsson's own FCF Margin % has ranged from 0.65 to 17.19 over the past decade. While the company's 10-year median is 6.79 vs. the industry median of 0.63, Telefonaktiebolaget L M Ericsson has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Margin % for a Hardware company?
The median FCF Margin % among Hardware companies is 0.63, based on 2,468 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Telefonaktiebolaget L M Ericsson's current FCF Margin % of 12.98% is 1960.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Telefonaktiebolaget L M Ericsson and its competitors. For the Hardware industry, the median FCF Margin % is 0.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telefonaktiebolaget L M Ericsson's current FCF Margin % is 12.98%, which is 91% above median its own 10-year median of 6.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telefonaktiebolaget L M Ericsson stock overvalued right now?
Based on GuruFocus' analysis, Telefonaktiebolaget L M Ericsson (ERIXF) is currently considered Significantly Overvalued. The stock's GF Value™ is $7.38, compared to a current price of $11.42 — trading 54.7% above its estimated fair value. The current FCF Margin % is 12.98%, which is 91% above median its 10-year median of 6.79 and 1960.3% above the Hardware industry median of 0.63. Telefonaktiebolaget L M Ericsson's overall GF Score™ is 59/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For Telefonaktiebolaget L M Ericsson (ERIXF), the current FCF Margin % is 12.98% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Telefonaktiebolaget L M Ericsson (ERIXF) Overvalued in 2026?
Based on GuruFocus' analysis, Telefonaktiebolaget L M Ericsson stock appears to be overvalued.
The current stock price of $11.42 is trading 54.7% above its estimated GF Value™ of $7.38.
GuruFocus considers Telefonaktiebolaget L M Ericsson to be Significantly Overvalued.
Key valuation signals for ERIXF:
FCF Margin %: 12.98% (91% above median its 10-year median of 6.79)
GF Value™: $7.38 vs. price of $11.42 (54.7% above fair value)
Industry Position: 1960.3% above the Hardware median (#295 of 2468)
No single metric tells the full story. See the ERIXF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telefonaktiebolaget L M Ericsson Business Description
Ericsson is a networking equipment and software provider, primarily selling mobile networking equipment and services to wireless service providers. Ericsson operates in three segments: networks, cloud software and services, and enterprise. While large wireless carriers are its largest customers, Ericsson has expanded its offerings for large enterprises. These products and services include private 5G networking, contact centers as a service, and application performance interfaces. Ericsson aims to combine its 5G network expertise with cloud-native, as-a-service platforms offering a more comprehensive hardware and software package. Ericsson also monetizes its research and development investments by licensing patents to handset manufacturers.
59GF Score
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