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

With a market cap of has a large market cap size. Telefonaktiebolaget LM Ericsson (NASDAQ: ERIC) has been on the stock market since its IPO date on the 9/28/1989. Telefonaktiebolaget LM Ericsson is in the Communication Equipment industry and Technology sector. Average volume for Telefonaktiebolaget LM Ericsson, is 4393.22, and so far today it has a volume of 1648800. Performance year to date since the 9/28/1989 is -16.34%.

To help you determine whether Telefonaktiebolaget LM Ericsson is undervalued the following values will help you decide. P/E is 15.25 and forward P/E is 10.98. PEG perhaps more useful shows that Telefonaktiebolaget LM Ericsson has a value for PEG of 1386.14. P/S ratio is 0.88 and the P/B ratio is 1.49. The P/Cash and P/Free cash flow is 3.55 and 193.72 respectively.

At the current price Telefonaktiebolaget LM Ericsson is trading at, 7.7 (1.85% today), Telefonaktiebolaget LM Ericsson has a dividend yield of 5.97%, and this is covered by a payout ratio of 75.70%. Earnings per share (EPS) is 0.51, and this is looking to grow in the next year to 15.30% after growing 15.50% this past year. EPS growth quarter over quarter is 49.90%, and -2.40% for sales growth quarter over quarter.

The number of shares outstanding is 3283.13, and the number of shares float is 3025.62. The senior management bring insider ownership to 0.90%, and institutional ownership is at 8.70%. The float short is 0.36%, with the short ratio at a value of 2.5. Management has seen a return on assets of 5.10%, and also a return on investment of 9.10%.

The ability for Telefonaktiebolaget LM Ericsson, to deal with debt, means it current ratio is 2.3, and quick ratio is 1.9. Long term debt/equity is 0.15 and total debt/equity is 0.17. In terms of margins, Telefonaktiebolaget LM Ericsson has a gross margin of 35.20%, with its operating margin at 9.40%, and Telefonaktiebolaget LM Ericsson has a profit margin of 5.80%.

The 52 week high is -27.44%, with 9.53% being its 52 week low. The 20 day simple moving average is 0.59% and the 200 day simple moving average is -11.89%.

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.


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Tony Dabbs

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