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SKF AB Class A
(SKF.A)
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Rating:58Neutral
Price Target:
kr274.00
▲(10.93% Upside)
Action:Reiterated
Date:04/22/26
The score is driven primarily by mixed financial performance: an improving, resilient balance sheet is offset by weakening revenue/margins and deteriorating cash conversion. Technicals are mildly supportive but not strongly trending. Valuation is a headwind given the higher P/E and no dividend, and the earnings call reinforces a cautious outlook due to weak cash flow and elevated working capital despite solid operational execution.
Positive Factors
Improving balance sheet resilience
Declining leverage and a sizable equity base provide durable financial flexibility over the next several quarters. Improved debt metrics reduce refinancing and interest-rate risk, enabling funding for separation costs, capex guidance (~SEK 5bn) and rightsizing without materially stressing liquidity.
Negative Factors
Weakened cash conversion and falling FCF
Materially weaker free-cash-flow conversion increases vulnerability to working-capital swings and reduces internal funding capacity. With FCF down ~28% TTM and conversion under 0.5, the company faces less cushion to absorb separation costs, capex or cyclical downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving balance sheet resilience
Declining leverage and a sizable equity base provide durable financial flexibility over the next several quarters. Improved debt metrics reduce refinancing and interest-rate risk, enabling funding for separation costs, capex guidance (~SEK 5bn) and rightsizing without materially stressing liquidity.
Read all positive factors
SKF AB Class A (SKF.A) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr117.89B
Dividend Yield3.16%
Average Volume (3M)5.63K
Price to Earnings (P/E)31.6
Beta (1Y)1.38
Revenue Growth-8.67%
EPS Growth-41.12%
CountrySE
Employees36,927
SectorGeneral
Sector StrengthN/A
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)8.25
Shares Outstanding28,930,820
10 Day Avg. Volume5,124
30 Day Avg. Volume5,635
Financial Highlights & Ratios
PEG Ratio-0.73
Price to Book (P/B)2.10
Price to Sales (P/S)1.23
P/FCF Ratio24.68
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)16.84
Revenue Forecast (FY)kr90.78B
SKF AB Class A Business Overview & Revenue Model
Company Description
AB SKF (publ) specializes globally in the conception, evolution, and production of bearings, seals, lubrication systems, and related services. Its operations are structured around two principal divisions: Industrial and Automotive. The company's c...
How the Company Makes Money
SKF makes money primarily by selling industrial components and reliability solutions to original equipment manufacturers (OEMs) and to the aftermarket (replacement/maintenance). Key revenue streams include: (1) Bearings and bearing units: sales of...
SKF AB Class A Earnings Call Summary
Earnings Call Date:Apr 21, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 21, 2026
Earnings Call Sentiment Positive
Positive operational execution driven by margin resilience, strong Specialized Industrial Solutions growth (~+9%), robust Bearing Solutions margins (19.3%), and SEK 300m of rightsizing savings in Q1. These operational wins and strategic progress (including automotive contract wins and the Elgin divestment) offset near-term headwinds — notably significant FX-driven revenue decline (-9.9%), negative operating cash flow (SEK -446m), elevated working capital (net working capital ~34.6% of sales) and ongoing separation-related one-offs (Q1 one-offs ~-SEK 308m; full-year separation/footprint costs guided at SEK -2.5bn to -3.0bn). Management expects working capital normalization by year-end and continued rightsizing benefits; on balance the positives (organic growth, margin durability, structural progress) outweigh the short-term financial and separation-related challenges.Positive Updates
Maintained Strong Adjusted Operating Margin
Adjusted operating margin of 13.5% in Q1 (flat year-over-year) despite a significant FX headwind (FX reduced margin by ~2.1 percentage points).
Negative Updates
Revenue Decline Driven by Currency
Net sales declined 8.7% year-over-year in Q1, primarily driven by an adverse currency impact of -9.9%.
Read all updates
Q1-2026 Updates
Positive
Negative
Maintained Strong Adjusted Operating Margin
Adjusted operating margin of 13.5% in Q1 (flat year-over-year) despite a significant FX headwind (FX reduced margin by ~2.1 percentage points).
Read all positive updates
Company Guidance
Guidance and forward-looking metrics: management expects Q2 organic growth to be “relatively unchanged” versus Q1 (given tougher year‑on‑year comps), with a sequentially more favorable FX impact estimated at minus SEK 100 million for Q2 (based on end‑March rates); full‑year guidance is unchanged: tax (ex‑divestment effects) about 28%, capital expenditure ~SEK 5.0 billion, and one‑off costs for the automotive separation and footprint optimization expected at roughly minus SEK 2.5–3.0 billion in 2026 (in line with the SEK 6.5 billion CMD framework; the Elgin capital gain is excluded). Rightsizing delivered SEK 300 million of savings in Q1, management targets a run‑rate rising from SEK 1.2 billion today to SEK 2.0 billion by end‑Q4 2027 and expects rightsizing to be somewhat net‑positive versus dissynergies for 2026 (roughly SEK 100 million net by management’s estimate). Cash and balance‑sheet signposts: Q1 operating cash flow was negative SEK 446 million, net working capital rose to ~34–35% of rolling sales (34.6%), normalization is expected toward year‑end (long‑term targets remain ~27–29%), net debt rose ~SEK 600 million to a net‑debt/adjusted‑EBITDA of 0.8x and net‑debt/equity ~10.7%; the separation process remains on track for completion in Q4 2026.SKF AB Class A Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
74
Positive
Cash Flow
49
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 89.49B | 91.58B | 98.72B | 103.88B | 96.93B | 81.73B |
| Gross Profit | 23.80B | 24.52B | 27.37B | 26.49B | 24.47B | 23.27B |
| EBITDA | 11.84B | 12.38B | 14.61B | 14.34B | 11.51B | 13.76B |
| Net Income | 3.76B | 3.93B | 6.47B | 6.39B | 4.47B | 7.33B |
Balance Sheet | ||||||
| Total Assets | 111.36B | 106.42B | 119.41B | 111.90B | 110.92B | 99.63B |
| Cash, Cash Equivalents and Short-Term Investments | 8.39B | 9.15B | 11.09B | 13.65B | 11.22B | 13.66B |
| Total Debt | 15.50B | 15.15B | 20.04B | 21.69B | 21.27B | 19.21B |
| Total Liabilities | 52.19B | 50.75B | 57.44B | 56.95B | 56.88B | 54.26B |
| Stockholders Equity | 56.94B | 53.56B | 59.65B | 52.74B | 51.93B | 43.65B |
Cash Flow | ||||||
| Free Cash Flow | 3.28B | 4.56B | 5.70B | 8.02B | 428.00M | 1.36B |
| Operating Cash Flow | 6.97B | 8.39B | 10.79B | 13.78B | 5.64B | 5.25B |
| Investing Cash Flow | -856.00M | -1.50B | -5.60B | -5.87B | -5.35B | -3.15B |
| Financing Cash Flow | -8.29B | -8.29B | -7.57B | -4.51B | -3.40B | -3.51B |
SKF AB Class A Technical Analysis
Positive
247.00
Price Trends
245.25
Positive
238.23
Positive
239.88
Positive
Market Momentum
4.58
Negative
59.32
Neutral
53.61
Neutral
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 247 is below the 20-day moving average (MA) of 253.22, above the 50-day MA of 245.25, and above the 200-day MA of 239.88, indicating a bullish trend. The MACD of 4.58 indicates Negative momentum. The RSI at 59.32 is Neutral, neither overbought nor oversold. The STOCH value of 53.61 is Neutral, 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | kr90.02B | 25.70 | 9.65% | 1.95% | -2.11% | 1.86% | |
71 Outperform | kr213.89B | 9.60 | 6.71% | 1.46% | -10.52% | 96.23% | |
69 Neutral | kr233.36B | 28.31 | 20.42% | 1.84% | 0.90% | 6.26% | |
60 Neutral | kr117.89B | 31.58 | 8.90% | 3.19% | -8.67% | -41.12% | |
58 Neutral | kr117.89B | 31.58 | ― | 3.16% | -8.67% | -41.12% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | kr72.64B | 30.86 | 9.65% | 0.86% | 0.29% | -1.32% |
* General Sector Average
SE:SKF.A
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SKF AB Class A Corporate Events
SKF AGM approves two-part dividend, board changes and new incentive plan
Apr 21, 2026
SKF AB’s annual general meeting approved the 2025 accounts and confirmed a dividend of SEK 7.75 per share, to be paid in two instalments later this year. The meeting also discharged the Board and President from liability and set the Board at...
SKF Holds Margin in Q1 2026 as Industrial Growth Offsets Automotive Weakness
Apr 21, 2026
SKF AB reported first-quarter 2026 net sales of SEK 21.9 billion, down from SEK 24.0 billion, but maintained an adjusted operating margin of 13.5% despite a volatile market and significant currency headwinds. Organic growth of 2.4% was driven by s...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.