Stock Updates

Is Telefonaktiebolaget LM Ericsson (publ)(NASDAQ: ERIC), a large market cap stock a smart buy?

With a market cap of has a large market cap size. Telefonaktiebolaget LM Ericsson (publ) (NASDAQ: ERIC) has been on the stock market since its IPO date on the 9/28/1989. Telefonaktiebolaget LM Ericsson (publ) is in the Communication Equipment industry and Technology sector. Average volume for Telefonaktiebolaget LM Ericsson (publ), is 3742.53, and so far today it has a volume of 578036. Performance year to date since the 9/28/1989 is -19.71%.

To help you determine whether Telefonaktiebolaget LM Ericsson (publ) is undervalued the following values will help you decide. P/E is 15.02 and forward P/E is 12.63. PEG perhaps more useful shows that Telefonaktiebolaget LM Ericsson (publ) has a value for PEG of 17.67. P/S ratio is 0.88 and the P/B ratio is 1.51. The P/Cash and P/Free cash flow is 4.31 and *TBA respectively.

At the current price Telefonaktiebolaget LM Ericsson (publ) is trading at, 7.36 (-0.47% today), Telefonaktiebolaget LM Ericsson (publ) has a dividend yield of 6.22%, and this is covered by a payout ratio of 78.60%. Earnings per share (EPS) is 0.49, and this is looking to grow in the next year to 13.37% after growing 15.50% this past year. EPS growth quarter over quarter is -24.60%, and -10.80% for sales growth quarter over quarter.

The number of shares outstanding is 3354.24, and the number of shares float is 3025.62. The senior management bring insider ownership to 0.90%, and institutional ownership is at 8.60%. The float short is 0.50%, with the short ratio at a value of 4.03. Management has seen a return on assets of 4.90%, and also a return on investment of 9.10%.

The ability for Telefonaktiebolaget LM Ericsson (publ), to deal with debt, means it current ratio is 2, and quick ratio is 1.6. Long term debt/equity is 0.13 and total debt/equity is 0.2. In terms of margins, Telefonaktiebolaget LM Ericsson (publ) has a gross margin of 34.70%, with its operating margin at 9.30%, and Telefonaktiebolaget LM Ericsson (publ) has a profit margin of 5.70%.

The 52 week high is -27.42%, with 5.68% being its 52 week low. The 20 day simple moving average is -1.72% and the 200 day simple moving average is -12.70%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.


About the author

Tony Dabbs

Leave a Comment