Ericsson American Depositary Shares (ERIC)

FairStock Score: 70/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett-style investor, I begin with business quality and price. Ericsson supplies mobile connectivity and 5G network gear—necessary but competitive. At the 2026-10-13 close of $9.71, FairStock calculations put P/E at 12.95, P/B at 0.32, EV/EBITDA at 0.82, and dividend yield at 3.14%; the Graham Number is $23.04, implying a 57.86% margin of safety. In fiscal Q2 2026, revenue was $52.7B and net income $4.0B, a 7.68% margin. FairStock also shows trailing free cash flow of $29.8B, a 79.1% FCF yield, ROE of 26.08%, and a beta of 0.51. Those are attractive headline numbers. But the supplied growth figures show revenue down 6.13% and profit down 11.41%, while ROCE is only 6.95%, Piotroski is 5/9, and the Altman Z-Score is 0.44—a red flag for financial risk. The FairStock Score is 66/100. The computed Lynch category is none because there are only 0 years of filed results, needing 3, so I cannot treat it as a proven grower. Ericsson may have a narrow position in network equipment, but the moat is not clear from these numbers. The stock is statistically cheap versus book and earnings, yet negative trends and a distress score demand caution. I would need evidence that revenue, profit, and returns on capital are stabilizing before calling this a high-quality value opportunity.

In plain English: Ericsson makes mobile and 5G network equipment for phone carriers and other customers. The business is still profitable, but sales and profits have been shrinking, and one risk measure shows financial stress. Based on the given numbers, the share price looks cheap compared with its book value and earnings, though that cheapness may reflect the weak trends.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer