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Telefonaktiebolaget LM Ericsson B ADR (ERIC)



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Upturn Advisory Summary
08/14/2025: ERIC (1-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $7.8
1 Year Target Price $7.8
0 | Strong Buy |
1 | Buy |
4 | Hold |
3 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 3.82% | Avg. Invested days 49 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Large-Cap Stock | Market Capitalization 25.63B USD | Price to earnings Ratio 14.09 | 1Y Target Price 7.8 |
Price to earnings Ratio 14.09 | 1Y Target Price 7.8 | ||
Volume (30-day avg) 8 | Beta 0.43 | 52 Weeks Range 6.64 - 8.99 | Updated Date 08/15/2025 |
52 Weeks Range 6.64 - 8.99 | Updated Date 08/15/2025 | ||
Dividends yield (FY) 3.47% | Basic EPS (TTM) 0.54 |
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 14.09 | Forward PE 13.72 | Enterprise Value 25775731177 | Price to Sales(TTM) 0.1 |
Enterprise Value 25775731177 | Price to Sales(TTM) 0.1 | ||
Enterprise Value to Revenue 1 | Enterprise Value to EBITDA 8.7 | Shares Outstanding 3071529984 | Shares Floating 2917883460 |
Shares Outstanding 3071529984 | Shares Floating 2917883460 | ||
Percent Insiders - | Percent Institutions 12.29 |
Upturn AI SWOT
Telefonaktiebolaget LM Ericsson B ADR

Company Overview
History and Background
Telefonaktiebolaget LM Ericsson B ADR (ERIC) was founded in 1876 in Sweden. It has evolved from a telegraph repair shop to a global leader in telecommunications technology and services, playing a key role in the development of mobile networks.
Core Business Areas
- Networks: Provides infrastructure solutions for mobile and fixed networks, including radio access networks (RAN), transport, and core networks.
- Cloud Software and Services: Offers cloud-native software solutions and professional services for telecom operators, enabling network automation and optimization.
- Enterprise Wireless Solutions: Provides private cellular networks and other wireless solutions for enterprises in various industries.
- Ericsson Global Communications Platform: Offers cloud-based communications and CPaaS solutions to enterprises.
Leadership and Structure
Ericsson is led by CEO Bu00f6rje Ekholm. The company operates with a functional organizational structure, with business areas responsible for specific product portfolios and geographic regions.
Top Products and Market Share
Key Offerings
- 5G RAN Market Share (%): 32
- 5G Radio Access Networks (RAN): Ericsson's 5G RAN equipment is a key offering, holding a significant market share in the global 5G infrastructure market. Market Share varies between regions. Competitors: Nokia (NOK), Huawei, Samsung.
- Cloud Core Market Share (%): 22
- Cloud Core Solutions: Ericsson's cloud core solutions enable operators to deploy and manage network functions in the cloud. Competitors: Nokia, Cisco (CSCO), Huawei.
- Managed Services: Ericsson offers managed services to telecom operators, helping them to manage and optimize their networks. Competitors: Nokia, Accenture (ACN), IBM (IBM).
Market Dynamics
Industry Overview
The telecommunications industry is undergoing a rapid transformation driven by the deployment of 5G networks, the growth of cloud computing, and the increasing demand for mobile broadband. It also involves intense geopolitical challenges.
Positioning
Ericsson is a leading provider of telecommunications equipment and services, with a strong focus on 5G technology. It competes with Nokia, Huawei, and Samsung in the global market. Ericsson is focused on profitable growth.
Total Addressable Market (TAM)
The telecom equipment market is expected to reach hundreds of billions of dollars. Ericsson is positioned to capture a significant share of this market through its investments in 5G technology and its global presence. TAM is estimated around $400B for 2024
Upturn SWOT Analysis
Strengths
- Strong market position in 5G
- Extensive R&D capabilities
- Global presence and customer relationships
- Comprehensive product portfolio
Weaknesses
- Exposure to geopolitical risks
- Dependence on telecom operators' capital expenditures
- Past compliance issues
- Operational inefficiencies
Opportunities
- Expansion of 5G networks globally
- Growing demand for cloud-based solutions
- Increasing adoption of private 5G networks
- Strategic partnerships and acquisitions
Threats
- Intense competition from Nokia, Huawei, and Samsung
- Technological disruptions and new entrants
- Economic downturns and market volatility
- Regulatory changes and compliance challenges
Competitors and Market Share
Key Competitors
- NOK
- CSCO
- QCOM
Competitive Landscape
Ericsson benefits from its strong 5G portfolio, but faces competition in pricing and scope of solutions. Ericsson is strong in Network and RAN while CSCO is focused on all networking.
Major Acquisitions
Vonage
- Year: 2022
- Acquisition Price (USD millions): 6200
- Strategic Rationale: Expansion into cloud-based communications and CPaaS solutions. Providing a Global Communications Platform for enterprises and developers.
Growth Trajectory and Initiatives
Historical Growth: Growth has been driven by the expansion of mobile networks and the adoption of new technologies. Growth rates are impacted by global economic cycles.
Future Projections: Analysts expect Ericsson to continue growing as 5G networks are deployed globally. Future growth is dependent on execution.
Recent Initiatives: Ericsson has been investing in 5G technology, cloud solutions, and enterprise wireless solutions to drive future growth. They're also focused on automation.
Summary
Ericsson is a key player in the 5G market with a strong global presence, however they are facing strong competition in a market that is subject to technology, economics and geopolitical forces. Ericsson has growth opportunities as 5G spreads globally but also has vulnerabilities to execution of their strategy in a competitive market. Recent acquisitions, such as Vonage, are attempting to expand Ericsson's product base, but these acquisitions will take time to be fully integrated into Ericsson's offerings. Ericsson must navigate geopolitical risks and regulatory changes to maintain its position in the market.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company SEC Filings
- Analyst Reports
- Industry Publications
- Third-party market research reports
Disclaimers:
This analysis is for informational purposes only and does not constitute investment advice. Market conditions are subject to change, and actual results may vary.
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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