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Telefonaktiebolaget LM Ericsson B ADR(ERIC)
Today’s top pick 
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Stock price based on last close Advisory Performance History (Simulated)
Upturn Advisory & Investor View for ERIC
10/30/2026: ERIC (4-star) is a STRONG-BUY. BUY for 9 days. Simulated Profits (4.98%). Updated daily EoD!
Telefonaktiebolaget LM Ericsson B ADR is a major global provider of telecommunications infrastructure, serving as a pillar for mobile network buildouts. The company leverages a strong patent portfolio and deep expertise in 5G to secure long-term operator relationships. Its current growth strategy focuses on expanding into enterprise wireless solutions and monetizing communication APIs through the Vonage platform. Key risks include intense competition, cyclical operator spending patterns, and the challenge of successfully integrating new enterprise acquisitions. It may suit dividend-focused or value-oriented investors, provided they can tolerate the cyclical nature of the telecommunications infrastructure sector and ongoing industry competitive pressures.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Mixed fit | Growth is largely dependent on the next cycle of network infrastructure and enterprise software adoption. |
| Momentum investor | Mixed fit | Stock performance often mirrors the cyclical sentiment of the broader telecommunications infrastructure sector. |
| Value investor | Strong fit | The stock often trades at valuation multiples that appeal to investors looking for established, dividend-paying technology firms. |
| Dividend investor | Strong fit | The company has established a history of returning capital to shareholders through regular dividends. |
| Low-risk investor | Mixed fit | While established, the sector's high cyclicality and geopolitical exposure introduce moderate risk. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium | The share price is subject to sector-wide sentiment shifts and changes in capital spending by major telecom clients. |
| Valuation risk | Medium | Market pricing depends heavily on sustained earnings growth from new enterprise software segments. |
| Competition risk | High | Intense pricing pressure from competitors like Nokia and Huawei limits pricing power in network equipment. |
| Business quality | Medium / high | The company maintains high-quality engineering assets and essential intellectual property in the networking field. |
| Dividend income | Medium | While consistent, dividends are subject to board approval and overall cash flow generation in cyclical downturns. |
| Execution risk | Medium | Integrating acquisitions like Vonage and scaling new enterprise service lines remains a key operational hurdle. |
Price Behavior
Downtrend
The stock has experienced a sustained decline in price over recent periods.
Moderately Choppy
The stock has experienced noticeable price swings while retaining some directional structure.
Analysis of Past Performance
Type Stock | Historic Profit 71.89% | Avg. Invested days 67 | Today’s Advisory Strong Buy |
Upturn Advisory Rating  | Upturn Advisory Performance  4.0 | Stock Returns Performance  4.0 |
| Profits based on simulation | Last Close 10/30/2026 |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals
Financial Health Rating
Growth Momentum Score
Ownership
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue)
Economic Dimensions
Quantitative Style Profile
Style Classification
Quality Focused
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 36.23B USD | Price to earnings Ratio 18.03 | 1Y Target Price 9.52 |
Price to earnings Ratio 18.03 | 1Y Target Price 9.52 | ||
Volume (30-day avg) 11.0M shares | Beta 0.51 | 52 Weeks Range 8.92 - 13.54 | Updated Date 11/01/2026 |
52 Weeks Range 8.92 - 13.54 | Updated Date 11/01/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.62 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Networks | Radio access, transport, and core network hardware and software for telecom operators. | This is the core business that builds the hardware that powers mobile networks. |
| Cloud Software and Services | Support systems for network operations and cloud-native solutions. | This segment provides the 'brain' and management software for running modern telecom networks. |
| Enterprise Wireless | Private networks and CPaaS platforms via Vonage. | This is the growth segment helping businesses use advanced wireless connectivity. |
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 2026-10-15 | When Before Market | Estimate 0.14 | Actual 0.18 |
Profitability
Profit Margin 8.36% | Operating Margin (TTM) - |
Management Effectiveness
Return on Assets (TTM) 7.07% | Return on Equity (TTM) 18.09% |
Valuation
Trailing PE 18.03 | Forward PE 16.95 | Enterprise Value 34.35B | Price to Sales(TTM) 1.59 |
Enterprise Value 34.35B | Price to Sales(TTM) 1.59 | ||
Enterprise Value to Revenue 1.47 | Enterprise Value to EBITDA 9.21 | Shares Outstanding 2.98B | Shares Floating 2.83B |
Shares Outstanding 2.98B | Shares Floating 2.83B | ||
Percent Insiders - | Percent Institutions 12.3 |
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
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