Financials ERICSSON Berne S.E.

Equities

ERCA

US2948216088

Communications & Networking

Delayed Berne S.E. Other stock markets			5-day change	1st Jan Change
- ^CHF	-.--%		-.--%	-.--%

11:36am	ERICSSON : Litigation risk is over, but market recovery has to wait
13/06	India's Vodafone Idea to issue shares worth $294 million to Nokia, Ericsson to pay dues	RE

Valuation

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	2,70,861	3,26,988	3,32,382	2,04,141	2,10,346	2,07,205	-	-
Enterprise Value (EV) ¹	2,36,365	3,06,716	2,97,231	1,89,986	2,12,445	2,05,051	1,91,964	1,76,164
P/E ratio	122 x	18.6 x	14.7 x	10.8 x	-7.95 x	15.4 x	11.6 x	10.3 x
Yield	1.84%	2.05%	2.51%	4.11%	4.28%	4.34%	4.71%	4.96%
Capitalization / Revenue	1.19 x	1.41 x	1.43 x	0.75 x	0.8 x	0.83 x	0.79 x	0.77 x
EV / Revenue	1.04 x	1.32 x	1.28 x	0.7 x	0.81 x	0.82 x	0.73 x	0.65 x
EV / EBITDA	7.58 x	8.12 x	7.2 x	5 x	7.06 x	6.52 x	5.31 x	4.57 x
EV / FCF	31 x	20.3 x	8.37 x	7.13 x	54.8 x	9.76 x	7.51 x	6.1 x
FCF Yield	3.23%	4.92%	11.9%	14%	1.83%	10.2%	13.3%	16.4%
Price to Book	3.27 x	3.75 x	3.06 x	1.51 x	2.16 x	1.96 x	1.79 x	1.63 x
Nbr of stocks (in thousands)	33,08,683	33,28,108	33,29,738	33,30,142	33,30,142	33,32,672	-	-
Reference price ²	81.56	97.64	99.79	60.90	63.11	62.18	62.18	62.18
Announcement Date	24/01/20	29/01/21	25/01/22	20/01/23	23/01/24	-	-	-

¹SEK in Million²SEK

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	2,27,216	2,32,390	2,32,314	2,71,546	2,63,351	2,50,039	2,62,073	2,69,707
EBITDA ¹	31,189	37,788	41,298	37,962	30,084	31,440	36,126	38,532
EBIT ¹	22,100	29,100	32,300	27,419	18,093	22,942	27,261	29,814
Operating Margin	9.73%	12.52%	13.9%	10.1%	6.87%	9.18%	10.4%	11.05%
Earnings before Tax (EBT) ¹	8,762	27,212	29,250	24,609	-23,319	18,400	23,796	27,830
Net income ¹	2,223	17,483	23,000	18,724	-26,446	14,598	17,912	20,163
Net margin	0.98%	7.52%	9.9%	6.9%	-10.04%	5.84%	6.83%	7.48%
EPS ²	0.6700	5.260	6.810	5.620	-7.940	4.042	5.379	6.044
Free Cash Flow ¹	7,633	15,096	35,517	26,635	3,880	20,999	25,571	28,867
FCF margin	3.36%	6.5%	15.29%	9.81%	1.47%	8.4%	9.76%	10.7%
FCF Conversion (EBITDA)	24.47%	39.95%	86%	70.16%	12.9%	66.79%	70.78%	74.92%
FCF Conversion (Net income)	343.36%	86.35%	154.42%	142.25%	-	143.85%	142.76%	143.17%
Dividend per Share ²	1.500	2.000	2.500	2.500	2.700	2.702	2.930	3.085
Announcement Date	24/01/20	29/01/21	25/01/22	20/01/23	23/01/24	-	-	-

¹SEK in Million²SEK

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	2021 Q4	2022 Q1	2022 Q2	2022 Q3	2022 Q4	2023 Q1	2023 Q2	2023 Q3	2023 Q4	2024 Q1	2024 Q2	2024 Q3	2024 Q4	2025 Q1	2025 Q2
Net sales ¹	71,332	55,061	62,465	68,040	85,980	62,553	64,444	64,473	71,881	53,325	58,338	62,790	75,923	56,851	62,744
EBITDA ¹	14,876	6,931	9,581	9,834	11,616	7,118	5,634	6,881	10,451	6,712	5,485	8,381	11,951	6,524	7,702
EBIT ¹	12,300	4,800	7,400	7,200	8,081	4,000	2,821	3,900	7,368	4,305	3,026	5,973	9,999	4,225	5,179
Operating Margin	17.24%	8.72%	11.85%	10.58%	9.4%	6.39%	4.38%	6.05%	10.25%	8.07%	5.19%	9.51%	13.17%	7.43%	8.25%
Earnings before Tax (EBT) ¹	10,916	4,101	6,549	7,115	7,379	2,129	-731	-29,627	4,910	3,629	1,468	4,756	8,940	3,975	4,047
Net income ¹	10,100	2,940	4,504	5,214	6,066	1,600	-686	-30,670	3,394	2,613	1,304	3,600	6,514	2,837	2,988
Net margin	14.16%	5.34%	7.21%	7.66%	7.06%	2.56%	-1.06%	-47.57%	4.72%	4.9%	2.24%	5.73%	8.58%	4.99%	4.76%
EPS ²	3.020	0.8800	1.350	1.560	1.820	0.4500	-0.2100	-9.210	1.020	0.7700	0.3610	1.056	1.949	0.8400	0.8850
Dividend per Share ²	1.500	1.250	1.250	-	1.250	-	-	-	1.350	-	1.388	-	1.187	-	0.6750
Announcement Date	25/01/22	14/04/22	14/07/22	20/10/22	20/01/23	18/04/23	14/07/23	11/10/23	23/01/24	16/04/24	-	-	-	-	-

¹SEK in Million²SEK

Estimates

Balance Sheet Analysis

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	-	-	-	-	2,099	-	-	-
Net Cash position ¹	34,496	20,272	35,151	14,155	-	2,154	15,241	31,041
Leverage (Debt/EBITDA)	-	-	-	-	0.0698 x	-	-	-
Free Cash Flow ¹	7,633	15,096	35,517	26,635	3,880	20,999	25,571	28,867
ROE (net income / shareholders' equity)	16.4%	20.7%	23.2%	15.4%	10.4%	14.3%	17.1%	17.2%
ROA (Net income/ Total Assets)	0.82%	6.38%	7.86%	7.41%	-8.18%	3.97%	5.26%	6.58%
Assets ¹	2,72,560	2,73,957	2,92,472	2,52,783	3,23,287	3,67,330	3,40,482	3,06,278
Book Value Per Share ²	24.90	26.00	32.60	40.40	29.30	31.70	34.80	38.20
Cash Flow per Share ²	5.080	8.700	11.70	9.260	2.160	7.660	8.980	10.10
Capex ¹	5,118	4,239	3,548	4,228	3,297	4,473	4,722	5,507
Capex / Sales	2.25%	1.82%	1.53%	1.56%	1.25%	1.79%	1.8%	2.04%
Announcement Date	24/01/20	29/01/21	25/01/22	20/01/23	23/01/24	-	-	-

¹SEK in Million²SEK

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for ERICSSON

Trading Rating

Investor Rating

ESG Refinitiv

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

HOLD

Number of Analysts

Last Close Price

62.18 SEK

Average target price

64.56 SEK

Spread / Average Target

+3.82%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Other Communications & Networking

	1st Jan change	Capi.
CISCO SYSTEMS, INC.	-9.81%	183B
FOXCONN INDUSTRIAL INTERNET CO., LTD.	+80.09%	70.95B
MOTOROLA SOLUTIONS, INC.	+19.66%	62.83B
GARMIN LTD.	+24.11%	31.1B
NOKIA OYJ	+10.98%	20.64B
ZHONGJI INNOLIGHT CO., LTD.	+71.48%	18.73B
ZTE CORPORATION	+5.06%	17.05B
JUNIPER NETWORKS, INC.	+20.45%	11.55B
UBIQUITI INC.	+2.05%	8.83B

Other Communications & Networking