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Upturn AI SWOT - About
ERIC 
Telefonaktiebolaget LM Ericsson B ADR (ERIC)
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Stock price based on last close (see disclosures)
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Upturn Advisory Summary
09/17/2025: ERIC (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
8 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $7.83
1 Year Target Price $7.83
| 0 | Strong Buy |
| 1 | Buy |
| 4 | Hold |
| 3 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 3.7% | Avg. Invested days 43 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 09/17/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 26.42B USD | Price to earnings Ratio 14.21 | 1Y Target Price 7.83 |
Price to earnings Ratio 14.21 | 1Y Target Price 7.83 | ||
Volume (30-day avg) 8 | Beta 0.45 | 52 Weeks Range 6.64 - 8.99 | Updated Date 09/17/2025 |
52 Weeks Range 6.64 - 8.99 | Updated Date 09/17/2025 | ||
Dividends yield (FY) 3.65% | Basic EPS (TTM) 0.56 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 7.04% | Operating Margin (TTM) 12.5% |
Management Effectiveness
Return on Assets (TTM) 3.66% | Return on Equity (TTM) 20.93% |
Valuation
Trailing PE 14.21 | Forward PE 14.03 | Enterprise Value 26638513955 | Price to Sales(TTM) 0.11 |
Enterprise Value 26638513955 | Price to Sales(TTM) 0.11 | ||
Enterprise Value to Revenue 1.01 | Enterprise Value to EBITDA 8.74 | Shares Outstanding 3071529984 | Shares Floating 2917883460 |
Shares Outstanding 3071529984 | Shares Floating 2917883460 | ||
Percent Insiders - | Percent Institutions 12.63 |
Upturn AI SWOT
Telefonaktiebolaget LM Ericsson B ADR
Company Overview
History and Background
Telefonaktiebolaget LM Ericsson, founded in 1876 in Sweden, initially focused on telegraph equipment before transitioning to telephony. Over time, Ericsson became a global leader in telecommunications technology, pioneering advancements in mobile networks. The ADR allows US investors to access Ericsson's stock.
Core Business Areas
- Networks: Develops and deploys 5G, 4G, and other network technologies for mobile operators. This includes radio access networks, transport, and core network solutions.
- Cloud Software and Services: Offers cloud-based software solutions and professional services, including consulting, network deployment, and managed services.
- Enterprise Wireless Solutions: Provides wireless solutions to enterprises, including private 5G networks and IoT platforms.
Leadership and Structure
The CEO of Ericsson is Bu00f6rje Ekholm. The company has a board of directors and operates with a regional and product-based organizational structure.
Top Products and Market Share
Key Offerings
- 5G RAN (Radio Access Network): Ericsson's 5G RAN solutions are a key driver of revenue. Ericsson has a significant market share, estimated at 39% in Q3 2023 (source: Dell'Oro). Competitors include Nokia and Huawei. It is estimated that RAN generates upwards of 50% of all revenue.
- Market Share (%): 39
- Cloud Packet Core: Ericsson's cloud packet core solutions enable operators to manage data traffic efficiently. Major competitors are Nokia, Cisco and Huawei. Although Packet core revenue is more challenging to determine as it makes up smaller portion of the overall networks division, it does make a significant contribution. Market share is estimated at approximately 25%.
- Market Share (%): 25
Market Dynamics
Industry Overview
The telecommunications industry is undergoing a rapid transformation driven by 5G deployment, cloud adoption, and the increasing demand for data. The industry is consolidating, with fewer major players.
Positioning
Ericsson is a leading provider of 5G infrastructure and related services. The company benefits from strong relationships with mobile operators and a reputation for technological innovation. Competition is intense.
Total Addressable Market (TAM)
The global telecommunications equipment market is estimated at over $100 billion. Ericsson is targeting a significant share of this market, particularly in 5G infrastructure and related services.
Upturn SWOT Analysis
Strengths
- Strong 5G technology portfolio
- Global presence and established customer relationships
- Focus on innovation and R&D
- End to end Network offering.
Weaknesses
- Exposure to geopolitical risks (e.g., bans in certain countries)
- Intense competition leading to pricing pressure
- Past controversies regarding ethical conduct
- Reliance on a few large customers
Opportunities
- Expansion of 5G networks globally
- Growth in cloud-based telecom solutions
- Increasing demand for IoT connectivity
- Strategic partnerships to expand product offerings
Threats
- Geopolitical tensions and trade restrictions
- Technological disruption from new entrants
- Economic slowdown impacting operator spending
- Cybersecurity threats to telecom infrastructure
Competitors and Market Share
Key Competitors
- NOK
- CSCO
- HUT
Competitive Landscape
Ericsson faces intense competition from Nokia, Huawei (not a public US stock), and Cisco. Ericsson's strength lies in its 5G technology and global reach, while competitors may have advantages in specific market segments or product categories.
Major Acquisitions
Vonage
- Year: 2022
- Acquisition Price (USD millions): 6200
- Strategic Rationale: The acquisition of Vonage was to expand Ericsson's presence in the enterprise communication platform market.
Growth Trajectory and Initiatives
Historical Growth: Ericsson has experienced fluctuating growth over the past decade, influenced by the cyclical nature of the telecom equipment market and competition.
Future Projections: Analysts project moderate growth for Ericsson driven by 5G deployment, but growth rates may be impacted by macroeconomic factors.
Recent Initiatives: Ericsson is investing in R&D to enhance its 5G portfolio and is expanding its cloud services offerings. Divesting non-core businesses and acquisitions of smaller companies.
Summary
Ericsson is a major player in the 5G infrastructure market, benefiting from strong technology and global reach. However, it faces significant competition and geopolitical risks. Recent financial results show a decrease in revenue. Strategic acquisitions will help diversify its product offerings. The company is well-positioned for long-term growth, but faces near-term challenges.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Ericsson's Annual Reports
- Analyst Reports (e.g., from Citi, Morgan Stanley)
- Dell'Oro Group Market Share Data
- Company Filings (SEC.gov)
- Third party telecom information sites.
Disclaimers:
This analysis is based on publicly available information and analyst estimates. It is not financial advice. Market conditions can change rapidly, and investors should conduct their own due diligence.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Telefonaktiebolaget LM Ericsson B ADR
Exchange NASDAQ | Headquaters - | ||
IPO Launch date 1989-09-28 | President, CEO, Head of Segment Enterprise & Director Mr. E. Borje Ekholm MBA, MSc | ||
Sector Technology | Industry Communication Equipment | Full time employees 91937 | Website https://www.ericsson.com |
Full time employees 91937 | Website https://www.ericsson.com | ||
Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions to communications service providers, enterprises, and the public sector. It operates through Networks; Cloud Software and Services; Enterprise; and Other segments. The Networks segment offers hardware and software solutions, and related service offerings. This segment also provides radio access network (RAN) products consists of antennas, radios, baseband (RAN compute), and RAN software; RAN compute indoor and outdoor units supporting macro and micro sites; transport solutions; active and passive antennas, as well as antenna line devices, system accessories, and feeder system; and customer support, network tuning, and intelligent deployment services. The Cloud Software and Services segment provides core networks, business and operational support systems, network management and cognitive network solutions, and managed network services. The Enterprise segment offers global communications platform; wireless connectivity for vehicles, remote locations, and IoT applications and devices; and private cellular networks. The Other segment includes RedBee Media that prepares and distributes live and on-demand video services for broadcasters, sports leagues, and communications service providers. It has operations in North America, Europe, Latin America, the Middle East, Africa, Northeast Asia, Southeast Asia, Oceania, and India. The company was formerly known as Allmanna Telefon AB LM Ericsson and changed its name to Telefonaktiebolaget LM Ericsson (publ) in January 1926. Telefonaktiebolaget LM Ericsson (publ) was founded in 1876 and is headquartered in Stockholm, Sweden.
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