Telefonaktiebolaget LM Ericsson Class B (ERIC.B) AI Stock Analysis

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Telefonaktiebolaget LM Ericsson Class B

(Nasdaq OMX AB:ERIC.B)

Select Model

Rating:70Outperform

Price Target:SEK 116.00▲(9.02% Upside)

Action:reiterated

Date:10/17/26

The score is driven primarily by improving financial performance (profitability and cash generation have recovered and leverage is manageable), supported by a strong technical uptrend with price above key moving averages. Offsetting factors include overbought technical signals (high RSI/Stoch), mixed durability of revenue/margins, and only moderately attractive valuation despite a decent dividend yield.

Positive Factors

Profitability RecoveryThe recovery to solid operating and net profitability indicates Ericsson has restored meaningful earnings power after its recent trough. Sustained margins can support investment in network technologies, strengthen resilience through industry cycles, and improve the company’s ability to fund strategic priorities.

Negative Factors

Revenue VolatilityThe history of repeated annual revenue contraction shows that Ericsson’s top-line performance remains exposed to uneven operator spending and network investment cycles. This volatility makes sustained growth harder to underwrite and can limit operating leverage even when demand improves temporarily.

Telefonaktiebolaget LM Ericsson Class B (ERIC.B) vs. iShares MSCI Sweden ETF (EWD)

Market Cap: SEK 344.52B
Dividend Yield: 2.82%
Average Volume (3M): 8.59M
Price to Earnings (P/E): 18.2
Beta (1Y): 0.55
Revenue Growth: -3.96%
EPS Growth: -21.11%
Country: Sweden
Employees: 85,417
Sector: General
Sector Strength: 55
Industry: Communication Equipment

Telefonaktiebolaget LM Ericsson Class B Business Overview & Revenue Model

Company Description

Telefonaktiebolaget LM Ericsson (publ), often referred to as Ericsson, is a Swedish company that delivers telecommunications infrastructure, services, and software solutions worldwide to telecom operators and various other sectors. Its business opera...

How the Company Makes Money

Ericsson makes money primarily by selling telecommunications network equipment, software, and services to communications service providers (mobile and fixed-line operators) and, to a lesser extent, enterprise customers. Key revenue streams typically...

Telefonaktiebolaget LM Ericsson Class B Financial Statement Overview

Summary

Overall fundamentals show a clear recovery: profitability is solid (TTM operating margin ~14%, net margin ~8%) and leverage is manageable (debt-to-equity ~0.41) with strong TTM ROE (~18%). The main offsets are uneven revenue history (multiple years of contraction despite strong TTM growth), some margin softening from 2025 peaks, and slowing TTM free cash flow growth despite good earnings quality (FCF ~0.91x net income).

Income Statement

74Positive

Balance Sheet

70Positive

Cash Flow

68Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	230.79B	236.68B	247.88B	263.35B	271.55B	232.31B
Gross Profit	110.81B	113.94B	109.36B	104.40B	113.30B	100.75B
EBITDA	39.71B	50.20B	16.16B	-9.96B	36.68B	39.71B
Net Income	19.30B	28.43B	20.00M	-26.45B	18.72B	22.69B
Balance Sheet
Total Assets	301.50B	279.22B	292.37B	310.14B	349.54B	305.61B
Cash, Cash Equivalents and Short-Term Investments	58.78B	56.64B	60.76B	44.77B	47.09B	66.98B
Total Debt	45.33B	40.26B	45.54B	54.33B	42.23B	41.13B
Total Liabilities	190.25B	168.96B	199.39B	212.73B	216.23B	198.51B
Stockholders Equity	110.48B	109.53B	94.28B	98.67B	134.81B	108.78B
Cash Flow
Free Cash Flow	29.36B	30.32B	42.62B	1.71B	24.67B	34.44B
Operating Cash Flow	32.31B	32.95B	46.26B	7.18B	30.86B	39.06B
Investing Cash Flow	-5.69B	-11.44B	-15.95B	-8.71B	-34.40B	-19.88B
Financing Cash Flow	-19.98B	-14.22B	-23.86B	1.01B	-15.93B	-9.31B

Telefonaktiebolaget LM Ericsson Class B Technical Analysis

Technical Analysis SentimentPositive

Last Price106.40

Price Trends

50DMA99.40Positive

100DMA98.43Positive

200DMA102.57Positive

Market Momentum

MACD1.64Positive

RSI57.87Neutral

STOCH39.64Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ERIC.B, the sentiment is Positive. The current price of 106.40 is above the 20-day moving average (MA) of 105.75, above the 50-day MA of 99.40, and above the 200-day MA of 102.57, indicating a bullish trend. The MACD of 1.64 indicates Positive momentum. The RSI at 57.87 is Neutral, neither overbought nor oversold. The STOCH value of 39.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:ERIC.B.

Telefonaktiebolaget LM Ericsson Class B Risk Analysis

Telefonaktiebolaget LM Ericsson Class B disclosed 43 risk factors in its most recent earnings report. Telefonaktiebolaget LM Ericsson Class B reported the most risks in the "Ability to Sell" category.

Ability to Sell - Risks related to the company’s ability to sell goods and services

Latest Risks Added

0 New Risks

Telefonaktiebolaget LM Ericsson Class B Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

SE:ERIC.B against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SE:ERIC.B	70Outperform	SEK 344.52B	18.22	18.10%	2.82%	-3.96%	-21.11%
SE:HMS	62Neutral	SEK 23.82B	43.86	14.92%	0.99%	14.65%	26.23%
SE:HTRO	61Neutral	SEK 8.46B	25.46	8.51%	―	7.22%	153.68%
SE:ALCA	58Neutral	SEK 730.43M	176.47	―	―	-4.14%	-86.52%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
SE:NETI.B	52Neutral	SEK 875.68M	-21.13	-7.07%	―	-14.51%	-1025.00%
SE:GAPW.B	38Underperform	SEK 252.18M	-2.79	-103.82%	―	-24.22%	-77.03%

* General Sector Average

Performance Comparison

SE:ERIC.B and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
SE:ERIC.B	Telefonaktiebolaget LM Ericsson Class B	106.40	15.33	16.83%
SE:HMS	HMS Networks AB	483.80	-16.54	-3.31%
SE:HTRO	Hexatronic Group AB	40.74	23.21	132.40%
SE:GAPW.B	Gapwaves AB Class B	7.33	-9.71	-56.98%
SE:NETI.B	Net Insight AB Class B	2.59	-1.61	-38.33%
SE:ALCA	Alcadon Group AB	30.00	7.50	33.33%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 17, 2026

Telefonaktiebolaget LM Ericsson Class B AI Stock Analysis