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ERIC

💻 Technology

Ericsson

Conservative #433Aggressive #266Low RiskModerate 72
$11.19+1.45%
Day High$11.21
Day Low$11.05
Volume9.7M
Mkt Cap$37.3B
52W Low $752W High $11
Market Cap
$37.7B
P/E Ratio
11.7
Sector avg: 87.8
Rev Growth
-5.9%
Sector avg: 14.8%
Earnings Growth
100.1%
Profit Margin
0.0%
Sector avg: -110.0%
Debt/Equity
0.48

Why This Score

ERIC scores 54.8 on the Conservative profile, blending a fundamental score (80% weight, emphasizing quality and stability (84% of fundamental weight)) with a machine-learning signal (20% weight) trained on 82 features across 30 years of data.

Strengths
  • Attractively valued at 11.7x earnings, below the market average.
  • Positive but moderate momentum (39%) — steady appreciation without overheating.
  • High conviction (72/100) — fundamental and ML signals agree on this stock.

No material penalties applied. ERIC ranks #433 based on its factor profile and ML signal alignment.

Score Breakdown

Overall Score54.8
Fundamental Score49.9
ML Score67.0

Score by Horizon

3 Month
56.9
6 Month
63.6
Primary
1 Year
67.0

Quality Assessment

D
Earnings Grade
Weak fundamentals or significant quality concerns

Position Sizing

Suggested Allocation
5%
Confidence
high

Score Composition Waterfall

How each component affects the final score
Backtested Scoring Levers (IC-calibrated from 30y ElasticNet)
Weinstein (12.1%)
100
Advancing
Sentiment (2.5%)
49
Neutral
Analyst (6.4%)
58
Neutral
Tradability (post-hoc)
99
Grade A
Base
51.1
SHAP
+3.3
Factors
+0.7
Divergence
-0.3
Final
54.8
Positive adjustment
Negative adjustment
Base blend
Final score

Factor Breakdown

77AVG
Value85
Quality55
Growth90
Stability75
Investment80

Signal SegmentsComputed from ML features

Fundamental (Valuation, Quality, Growth)50.0
Technical (Momentum, Weinstein, Volatility)87.0
External (Sentiment, Analyst, Macro)52.0
Scores below 50 indicate weakness in that segment relative to the universe.

Data Quality

Score
Features
Confidence
Feature Coverage96%

Growth Estimates

Short-term
-0.3% to +4.2%
Medium-term
+0.0% to +6.8%
Long-term
+0.3% to +9.5%

ML Model Core Features100 trained inputs → ML Score: 67

These features are direct inputs to the machine learning model. The model was trained on these signals alongside 100 features (including 12 momentum/technical indicators) to produce the ML percentile score.

Analyst Intelligence
Consensus Score58.1/100
Target Upside-37.5%
Coverage40 analysts
Market Sentiment
Sentiment Score49.1/100
News Volume1 articles
Technical Stage
Weinstein Stage2 — Advancing
12M Momentum+0.4%
6M Momentum+0.4%
Volatility+0.1%
Momentum & Technical
Momentum Acceleration-4.2%
Momentum ConsistencyStrong (0.90)
Relative Strength vs Sector+35.5%
Trend Strength (ADX Proxy)Strong (4.1)
Momentum Quality+0.332
Momentum BreadthBroad ✓
Macro Regime
Bull RegimeYes
High Vol RegimeNo
S&P 500 Return+25.0%
Yield Curve-0.1bp

Sector-Relative AnalysisIn-model features

Value Trap Signal
62%
High risk — cheap + stagnating
Sector RevGr Rank
P11
Revenue growth vs Technology peers
Sector PE Rank
P70
Valuation vs Technology peers
Sector FCF Rank
P100
Free cash flow vs Technology peers
Growth Deviation
-0.3σ
Z-score vs sector median
Stagnation Flag
YES
Below-sector growth + cheap PE
Value trap warning: This stock scores in the top quartile for value trap risk. The combination of below-sector-median revenue growth, low PE, and high free cash flow yield suggests the market is pricing in stagnation. The ML model's sector-relative features (trained on 30 years of data) reduce this stock's score accordingly.

Analysis Signals

Scoring Factors
Fundamental score of 73 relative to sector peers73/100
Machine learning model ranks this stock at the 67th percentileP67
ML model weight reduced to 9% due to macro conditions: market in extended rally phase; yield curve inverted (recession indicator); late-cycle economic indicators detected9% ML weight
SHAP feature alignment: +5.0pt (features align with model priorities)
Blend: 91% fund (73.2) + 9% ML (64.7) + SHAP(+5.0) = 77.4
Factor quality: +1.0pt (multi-factor composite)
Risk assessment: low. Annualized volatility 9.4%. Max drawdown 15% (-2.7 pts)Low
Market cap adjustment: +2.0 points ($37.7B market cap)+2.0 pts
Risk Factors
Earnings quality grade D: weak earnings quality, multiple concerns. Score adjusted by -23 pointsGrade D
Quality concern: Earnings growth (100%) far exceeds revenue growth (-5.9%) — margin expansion may not be sustainable; Earnings/revenue growth ratio of Infinityx — earnings quality suspectFlag

Sector Peer Comparison(Technology — Rank #98 of 289 stocks)

StockScoreP/ERev GrowthMarginMkt Cap
ERIC54.811.7-5.9%0.0%$37.7B
MPWR84.891.721.2%81.0%$57.1B
ZM84.218.03.1%21.7%$27.7B
NVDA80.645.2114.2%55.8%$4.5T
CRUS79.719.16.0%17.5%$7.4B
ASML77.848.115.6%29.4%$546.0B
IDCC77.431.8-4.0%48.8%$9.7B
CSCO77.127.65.3%18.0%$303.6B
RMBS75.548.320.7%32.3%$11.0B
DBX75.313.91.9%17.7%$6.4B
FSLR75.017.326.7%30.7%$24.2B
SIMO74.79.210.2%13.8%$4.5B
ADI74.374.116.9%20.6%$165.1B
AAPL72.533.16.4%27.0%$3.9T
OLED72.527.012.4%34.3%$5.9B
AMAT72.336.44.4%24.7%$281.7B
Sector Average47.487.814.8%-110.0%

Market Sentimentvia FMP

Analyst Consensus
Hold40 analysts
Buy: 15Hold: 23Sell: 2
Price Target
$7consensus
Low $6Median $7High $8
-38.0% to consensus target

Company Overviewvia FMP

Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides communication infrastructure, services, and software solutions to the telecom and other sectors. It operates through four segments: Networks, Digital Services, Managed Services, and Emerging Business and Other. The Networks segment offers radio access network solutions for various network spectrum bands, including integrated high-performing hardware and software. This segment also provides integrated antenna and transport solutions; and a range of service portfolio covering network deployment and support. The Digital Services segment offers software-based solutions for business support systems, operational support systems, communication services, core networks, and cloud infrastructure. The Managed Services segment provides networks and IT managed, network design and optimization, and application development and maintenance services to telecom operators. The Emerging Business and Other segment includes emerging businesses comprising Internet of Things; iconectiv; Cradlepoint that offers wireless edge WAN 4G and 5G enterprise solutions; and Red Bee Media, MediaKind, and other new businesses. It operates in North America, Europe and Latin America, the Middle East and Africa, South East Asia, Oceania, India, North East Asia, and internationally. Telefonaktiebolaget LM Ericsson (publ) was founded in 1876 and is headquartered in Stockholm, Sweden.

CEO
E. Borje Ekholm
Employees
92,866
Beta
0.56
Industry
Communication Equipment
FMP-Identified Peers

Technical Picturecomputed from daily prices

RSI (14)
54.2
Neutral
Trend
Bullish
10-day vs 50-day MA
From 52W High
-1.7%
High: $11.38
From 52W Low
+68.5%
Low: $6.64
Moving Averages
10-Day
$11.10
Above
20-Day
$11.10
Above
50-Day
$10.20
Above
200-Day
$9.00
Above
60-Day Support
$9.21
60-Day Resistance
$11.38
Weinstein Stage Analysisbased on 200-day SMA framework
Stage 2 — AdvancingScore: 83/100

Stock is in an uptrend above the 200-day moving average. This is the stage where institutional accumulation typically occurs. The 50-day SMA provides support.

Favorable technical position; 50-day SMA acts as support
Price vs 200 SMA
+24.3%
200 SMA Slope (60d)
+7.62%
Rising
Volume Ratio
0.78x
10d avg vs 50d avg
Days in Stage
100
Confidence: 90%

Financial Statementslast 4 quarters via FMP

MetricQ4 2025Q3 2025Q2 2025Q1 2025
Revenue$67.9B$55.4B$55.0B$51.6B
Gross Profit$32.6B$26.7B$26.4B$25.0B
Operating Income$11.6B$7.6B$6.8B$5.8B
Net Income$8.4B$11.0B$4.5B$3.9B
EPS (Diluted)$2.51$3.33$1.34$1.16
Gross Margin48.0%48.1%48.0%48.5%
Operating Margin17.1%13.7%12.4%11.3%
Net Margin12.4%19.8%8.1%7.5%

Why This Stock

TechnologyP/E ratio of 11.7Earnings quality grade D

Tradability FilterGrade A — 99/100Score impact: -15.0pt

Volume
100
8.7M avg/day
Dollar Vol
100
$97M/day
Float
100
2.9B shares
Mkt Cap
93
$37.7B
Range
96
71% spread
Composite Liquidity Score99/100
FDCBA

Multi-Year Range Analysis

Sideways: 0/100
YearLowHighRangeStatus
2021$9.93$14.3936.7%Wide
2022$5.16$12.7884.9%Wide
2023$4.33$6.4339%Wide
2024$4.77$8.6257.5%Wide
2025$6.64$10.3543.7%Wide
3-Year Range
82%
Narrow Years
0 / 5
Sideways Penalty
None

Growth Projection Adjustment

0.5x dampening
revenue decline

Growth estimates have been dampened based on technical and fundamental signals. This is a post-hoc adjustment to prevent overly optimistic projections for stocks showing declining momentum or deteriorating fundamentals.

Free Float
87.5%
Outstanding Shares
3.3B
Bid-Ask Spread
71.0%
Institutional Tradable
Yes

Scores are generated by a multi-stage ML pipeline combining fundamental analysis, ensemble predictions, and structural risk signals. All data is for research purposes only and does not constitute financial advice. Past performance does not guarantee future results.