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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
06/27/2025: ERIC (3-star) is a REGULAR-BUY. BUY since 34 days. Profits (1.81%). Updated daily EoD!
Upturn Star Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Number of Analysts
8 Analysts rated it
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Year Target Price $8.11
Year Target Price $8.11
| 0 | Strong Buy |
| 1 | Buy |
| 4 | Hold |
| 0 | Under performing |
| 3 | Sell |
Analysis of Past Performance
Type Stock | Historic Profit 18.9% | Avg. Invested days 47 | Today’s Advisory WEAK BUY |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 06/27/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 28.32B USD | Price to earnings Ratio 168.8 | 1Y Target Price 8.11 |
Price to earnings Ratio 168.8 | 1Y Target Price 8.11 | ||
Volume (30-day avg) - | Beta 0.44 | 52 Weeks Range 5.92 - 8.99 | Updated Date 06/29/2025 |
52 Weeks Range 5.92 - 8.99 | Updated Date 06/29/2025 | ||
Dividends yield (FY) 3.13% | Basic EPS (TTM) 0.05 |
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 0.64% | Operating Margin (TTM) 11.28% |
Management Effectiveness
Return on Assets (TTM) 2.65% | Return on Equity (TTM) 2.06% |
Valuation
Trailing PE 168.8 | Forward PE 16.37 | Enterprise Value 27302701380 | Price to Sales(TTM) 0.11 |
Enterprise Value 27302701380 | Price to Sales(TTM) 0.11 | ||
Enterprise Value to Revenue 1.04 | Enterprise Value to EBITDA 14.24 | Shares Outstanding 3071529984 | Shares Floating 2922934170 |
Shares Outstanding 3071529984 | Shares Floating 2922934170 | ||
Percent Insiders - | Percent Institutions 13.22 |
Analyst Ratings
Rating 2.75 | Target Price 8.11 | Buy 1 | Strong Buy - |
Buy 1 | Strong Buy - | ||
Hold 4 | Sell 3 | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Telefonaktiebolaget LM Ericsson B ADR
Company Overview
History and Background
Telefonaktiebolaget LM Ericsson was founded in 1876 in Stockholm, Sweden. Initially focused on telegraph equipment, it expanded into telephone systems and has evolved into a global leader in telecommunications equipment and services, particularly in mobile networks.
Core Business Areas
- Networks: Provides infrastructure, software, and services for mobile and fixed broadband networks, including 5G, 4G, and earlier generations. This is their primary revenue driver.
- Cloud Software and Services: Offers cloud-based solutions for communication service providers (CSPs), including cloud infrastructure, telecom cloud, and cloud-native software.
- Enterprise Wireless Solutions: Provide cellular solutions that use the 4G and 5G mobile communication standard for enterprise use cases.
- Global Communications Platform: Is a cloud based software platform enabling telecom operators to accelerate delivery and monetization of 5G solutions.
- Technologies & New Businesses: Includes investments in emerging technologies, such as IoT, automation, and new business opportunities.
Leadership and Structure
The CEO is Bu00f6rje Ekholm. The company is structured with a board of directors and various business area heads, reporting directly to the CEO.
Top Products and Market Share
Key Offerings
- 5G Network Equipment: Ericsson provides a comprehensive portfolio of 5G radio access network (RAN) equipment, including base stations, antennas, and software. They are a major player in the global 5G infrastructure market. Competitors include Nokia, Huawei, and Samsung. Market share varies by region but is estimated around 25% globally.
- 4G LTE Network Equipment: While 5G is growing, Ericsson continues to provide and support 4G LTE infrastructure, crucial for maintaining connectivity. Competitors include Nokia, Huawei, and Samsung. Market share varies by region.
- Cloud-Native Infrastructure: Ericsson offers cloud infrastructure solutions optimized for telecom applications, enabling CSPs to deploy and manage network functions in the cloud. Market Share for specific telecom cloud solutions is smaller compared to overall network infrastructure. Competitors include VMware, Red Hat, and Huawei.
Market Dynamics
Industry Overview
The telecommunications equipment industry is characterized by rapid technological advancements, particularly in 5G and cloud technologies. The industry is highly competitive, with a few major players dominating the market. Increased demand for data and connectivity drives growth.
Positioning
Ericsson is a leading player in the global telecommunications equipment market, known for its technological innovation and strong relationships with major CSPs. Their focus on 5G and cloud solutions positions them well for future growth. However, they face intense competition from other major vendors.
Total Addressable Market (TAM)
The total addressable market for telecommunications equipment and services is projected to reach hundreds of billions of dollars annually. Ericsson is positioned to capture a significant portion of this TAM, particularly in the 5G infrastructure segment.
Upturn SWOT Analysis
Strengths
- Strong presence in 5G technology
- Global reach and established relationships with major CSPs
- Extensive research and development capabilities
- Comprehensive portfolio of network equipment and services
- Recognized brand reputation
Weaknesses
- Exposure to geopolitical risks (e.g., restrictions in certain markets)
- Intense competition from other major vendors
- Historical profitability challenges
- Dependence on large CSP contracts
Opportunities
- Expanding 5G deployments globally
- Growth in cloud-based telecom solutions
- Increasing demand for IoT connectivity
- Emerging markets with growing mobile infrastructure needs
- Potential for new revenue streams from 5G applications
Threats
- Competition from Huawei, Nokia, and Samsung
- Geopolitical tensions and trade restrictions
- Technological disruptions and evolving industry standards
- Economic downturns impacting CSP spending
- Supply chain disruptions
Competitors and Market Share
Key Competitors
- Nokia (NOK)
- Samsung (SSNLF)
- Cisco (CSCO)
Competitive Landscape
Ericsson competes with Nokia, Huawei (privately held), and Samsung in the global telecommunications equipment market. Ericsson differentiates itself through technology leadership and a strong focus on 5G. However, they face intense price competition and geopolitical challenges.
Major Acquisitions
Vonage
- Year: 2022
- Acquisition Price (USD millions): 6200
- Strategic Rationale: To expand its presence in the enterprise space and offer a global network for open innovation. Ericsson acquired Vonage to build a global network for open innovation that would put the power of 5G to work.
Growth Trajectory and Initiatives
Historical Growth: Ericsson's growth has been driven by the expansion of mobile networks and the adoption of new technologies. Recent years have seen growth in 5G deployments.
Future Projections: Analysts project continued growth for Ericsson, driven by 5G and cloud solutions. Growth rates will depend on market conditions and competition.
Recent Initiatives: Ericsson has focused on strengthening its 5G portfolio, expanding its cloud offerings, and investing in research and development.
Summary
Ericsson is a key player in the 5G infrastructure market with a global presence and established relationships. The company has a comprehensive portfolio of network equipment and services and has made strategic acquisitions to bolster their enterprise offering. However, Ericsson faces intense competition and geopolitical challenges, requiring them to continuously innovate and navigate market complexities. They will need to continue to invest into next generation technologies to stay ahead of the curve.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings
- Industry Reports
- Financial News Outlets
- Analyst Estimates
Disclaimers:
The data provided is for informational purposes only and should not be considered investment advice. Market share estimates are approximate and may vary by region. Financial data may not be real-time. Do your own research.
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 92866 | Website https://www.ericsson.com |
Full time employees 92866 | 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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