ERICSSON ● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
Strengths
● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at SEK 75.92 SEK in weekly data.
● The company is in a robust financial situation considering its net cash and margin position.
● Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● The company's earnings releases usually do not meet expectations.
● The firm trades with high earnings multiples: 26.32 times its 2019 earnings per share.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
