SKF AB Class A (SKF.A) AI Stock Analysis

• Market Cap: kr108.10B
• Dividend Yield: 3.24%
• Average Volume (3M): 4.04K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 1.36
• Revenue Growth: -4.94%
• EPS Growth: -5.76%
• Country: SE
• Employees: 38,426
• Sector: Industrials
• Sector Strength: 93
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 1.13
• Shares Outstanding: 28,959,000
• 10 Day Avg. Volume: 5,653
• 30 Day Avg. Volume: 4,036
• PEG Ratio: -11.36
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.25
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: kr259.00 ▲(12.12%Upside)

SKF AB Class A exhibits a solid financial foundation and favorable technical indicators, supporting a positive outlook. Despite valuation concerns and challenges in the automotive sector, strategic initiatives and growth in the industrial segment contribute positively to its overall stock score.

SKF AB Class A Business Overview & Revenue Model

Company Description

SKF AB Class A (SKF.A) is a leading global provider of bearings, seals, lubrication systems, mechatronics, and services that include technical support, maintenance and reliability services, engineering consulting, and training. Headquartered in Gothenburg, Sweden, SKF operates in industries such as automotive, aerospace, and industrial manufacturing, offering solutions crucial for reducing friction and CO2 emissions, while improving machine performance and reliability.

How the Company Makes Money

SKF AB generates revenue primarily through the sale of its core products, which include bearings and units, seals, and lubrication systems. The company also offers a range of services that contribute to its income, such as maintenance and reliability services, engineering consulting, and training. SKF maintains a diversified customer base across various industries, including automotive, industrial, and aerospace sectors. The company's strategic partnerships and collaborations with major players in these industries help enhance its market presence and revenue potential. Additionally, SKF invests in research and development to innovate and expand its product offerings, thereby ensuring continuous revenue growth.

SKF AB Class A Financial Statement Overview

Summary

SKF AB Class A demonstrates solid financial health with consistent profitability and growth, a strong balance sheet, and stable cash flow generation. Despite challenges in revenue growth in the latest period, the company maintains efficient operations and financial management.

Income Statement

SKF AB Class A has shown strong revenue growth, especially from 2020 to 2021, with stable gross and net profit margins. The EBIT and EBITDA margins are solid, reflecting efficient cost management despite revenue fluctuations in the recent year.

Balance Sheet

The company's balance sheet is robust with a favorable debt-to-equity ratio and strong equity position, indicating financial stability. Return on equity has remained positive, showcasing effective use of equity capital.

Cash Flow

The company exhibits good free cash flow generation, although there was a decline in recent years. Operating cash flow to net income ratio is strong, indicating efficient cash generation from operations relative to net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	98.72B	103.88B	96.93B	81.73B	74.85B
Gross Profit	27.37B	26.49B	24.47B	23.27B	16.99B
EBITDA	14.61B	14.34B	11.51B	13.76B	10.08B
Net Income	6.47B	6.39B	4.47B	7.33B	4.30B
Balance Sheet
Total Assets	119.41B	111.90B	110.92B	99.63B	90.56B
Cash, Cash Equivalents and Short-Term Investments	11.03B	13.65B	11.22B	13.66B	14.64B
Total Debt	20.04B	21.69B	21.27B	19.21B	17.82B
Total Liabilities	57.44B	56.95B	56.88B	54.26B	54.84B
Stockholders Equity	59.65B	52.74B	51.93B	43.65B	34.31B
Cash Flow
Free Cash Flow	5.70B	8.02B	428.00M	1.36B	4.89B
Operating Cash Flow	10.79B	13.78B	5.64B	5.25B	8.27B
Investing Cash Flow	-5.60B	-5.87B	-5.35B	-3.15B	-3.01B
Financing Cash Flow	-7.57B	-4.51B	-3.40B	-3.51B	2.69B

SKF AB Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 231.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SKF.A, the sentiment is Positive. The current price of 231 is above the 20-day moving average (MA) of 225.75, above the 50-day MA of 216.96, and above the 200-day MA of 206.28, indicating a bullish trend. The MACD of 5.99 indicates Negative momentum. The RSI at 64.09 is Neutral, neither overbought nor oversold. The STOCH value of 81.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:SKF.A.

SKF AB Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALFA	78 Outperform	kr176.04B	21.93	20.37%	2.01%	2.66%	19.90%
SAAB.B	78 Outperform	kr284.64B	54.81	14.05%	0.34%	22.75%	41.98%
SAND	76 Outperform	kr304.19B	21.00	16.41%	2.35%	-1.82%	12.60%
SKF.B	75 Outperform	kr108.10B	20.13	9.91%	3.27%	-4.94%	-5.76%
SKF.A	73 Outperform	kr108.10B	20.02		3.24%	-4.94%	-5.76%
EPI.A	68 Neutral	kr239.81B	27.81		1.84%	3.92%	4.96%
Sector *	58 Neutral	HK$14.94B	4.73	-2.78%	5.01%	3.80%	-54.55%

SKF AB Class A Corporate Events

SKF AB Class A Reports Q2 2025 Results Amid Strategic Restructuring

SKF AB Class A reported a slight decline in net sales for Q2 2025, primarily due to lower demand in the automotive sector, while the industrial segment showed growth. Despite currency headwinds, the company maintained a strong adjusted operating margin through pricing strategies and cost control. The company is undergoing a significant restructuring to enhance competitiveness, with expected savings from rightsizing the industrial business and separating the automotive segment. This restructuring is aimed at achieving long-term growth and operational excellence, particularly in the aerospace sector.

SKF Announces Change in Share Voting Structure

AB SKF announced a change in the total number of votes due to the conversion of shares from Series A to Series B. As of May 30, 2025, the company has 455,351,068 shares, with 28,930,824 as Series A and 426,420,244 as Series B, resulting in 71,572,848.4 votes. This change does not affect the company’s ownership of shares, as it holds none. The announcement reflects SKF’s compliance with regulatory requirements and may influence shareholder voting dynamics.