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

• Market Cap: kr106.45B
• Dividend Yield: 3.3%
• Average Volume (3M): 5.88K
• Price to Earnings (P/E): 19.9
• Beta (1Y): 1.38
• Revenue Growth: -4.94%
• EPS Growth: -5.76%
• Country: SE
• Employees: 38,426
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 1.13
• Shares Outstanding: 28,930,824
• 10 Day Avg. Volume: 4,337
• 30 Day Avg. Volume: 5,875
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: kr264.00
• Price Target Upside: 11.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: kr264.00 ▲(11.39% Upside)

SKF AB Class A's overall stock score is driven primarily by its solid financial performance and strong technical indicators. The company's stable profitability and upward stock trend are significant strengths. However, the high P/E ratio and challenges highlighted in the earnings call, such as FX headwinds and automotive segment decline, slightly dampen the outlook.

SKF AB Class A Business Overview & Revenue Model

Company Description

AB SKF (publ) engages in the design, development, and manufacture of bearings, seals, lubrication systems, and services worldwide. It operates in two segments, Industrial and Automotive. The company offers rolling bearings, mounted bearings and housings, super-precision bearings, slewing bearings, plain bearings, magnetic bearings and systems, industrial and automotive seals, lubrication management solutions, maintenance products, condition monitoring systems, power transmission solutions, test and measuring equipment, vehicle aftermarket, and waste electric and electronic equipment products. It also provides various services, including application engineering, asset management, condition-based maintenance, mechanical maintenance, remanufacturing and customization, and training solutions. The company offers its solutions for various industries, including aerospace, agriculture, cars and light trucks, construction, food and beverage, general machinery, machine tools, marine, material handling, metals, mining, mineral processing and cement, ocean energy, oil and gas, pulp and paper, railways, trucks, trailers, buses, two and three wheelers, and wind energy. AB SKF (publ) was founded in 1907 and is headquartered in Gothenburg, Sweden.

How the Company Makes Money

SKF generates revenue primarily through the sale of its bearings and related products, which serve as critical components in machinery and vehicles. The company has diversified its revenue streams by offering services such as condition monitoring, maintenance, and repair, which help customers optimize their operations. Significant partnerships with major manufacturers in automotive and industrial sectors allow SKF to secure long-term contracts and steady demand for its products. Additionally, SKF invests in research and development to innovate and expand its product offerings, enhancing its competitive edge and driving sales growth.

SKF AB Class A Financial Statement Overview

Summary

SKF AB Class A demonstrates solid profitability and a stable financial position, with healthy margins and a balanced leverage profile. However, the recent decline in revenue growth and a moderate cash flow position highlight areas for improvement. The company should focus on reversing the revenue decline and enhancing cash flow efficiency to strengthen its financial standing.

Income Statement

SKF AB Class A shows a stable gross profit margin around 27% and a net profit margin of 5.6% in TTM, indicating decent profitability. However, the revenue growth rate has declined by 2.49% in the TTM, which is a concern. The EBIT and EBITDA margins are healthy, reflecting efficient operations, but the declining revenue trend needs attention.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.36, indicating a balanced leverage position. Return on equity is at 9.5%, which is reasonable but has decreased from previous years. The equity ratio is stable, suggesting a solid financial structure, but the slight decline in ROE could be a potential risk.

Cash Flow

Operating cash flow is strong, but the operating cash flow to net income ratio is moderate at 0.36. Free cash flow has grown by 24.1% in the TTM, which is positive. However, the free cash flow to net income ratio is just over 0.5, indicating room for improvement in cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	95.55B	98.72B	103.88B	96.93B	81.73B	74.85B
Gross Profit	26.19B	27.37B	26.49B	24.47B	23.27B	16.99B
EBITDA	13.62B	14.61B	14.34B	11.51B	13.76B	10.08B
Net Income	5.37B	6.47B	6.39B	4.47B	7.33B	4.30B
Balance Sheet
Total Assets	111.38B	119.41B	111.90B	110.92B	99.63B	90.56B
Cash, Cash Equivalents and Short-Term Investments	11.37B	11.09B	13.65B	11.22B	13.66B	14.64B
Total Debt	19.30B	20.04B	21.69B	21.27B	19.21B	17.82B
Total Liabilities	55.99B	57.44B	56.95B	56.88B	54.26B	54.84B
Stockholders Equity	53.16B	59.65B	52.74B	51.93B	43.65B	34.31B
Cash Flow
Free Cash Flow	5.44B	5.70B	8.02B	428.00M	1.36B	4.89B
Operating Cash Flow	10.65B	10.79B	13.78B	5.64B	5.25B	8.27B
Investing Cash Flow	-2.85B	-5.60B	-5.87B	-5.35B	-3.15B	-3.01B
Financing Cash Flow	-4.85B	-7.57B	-4.51B	-3.40B	-3.51B	2.69B

SKF AB Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 237.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 237 is below the 20-day moving average (MA) of 241.05, above the 50-day MA of 235.52, and above the 200-day MA of 214.17, indicating a neutral trend. The MACD of 0.36 indicates Positive momentum. The RSI at 48.51 is Neutral, neither overbought nor oversold. The STOCH value of 21.39 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HEXA.B	78 Outperform	292.19B	27.44	9.41%	1.44%	-1.88%	8.49%
SKF.B	76 Outperform	106.45B	19.82	10.10%	3.32%	-4.94%	-5.76%
SKF.A	74 Outperform	kr106.45B	19.93		3.30%	-4.94%	-5.76%
ALFA	72 Outperform	180.17B	22.45	19.89%	1.95%	2.66%	19.90%
TREL.B	69 Neutral	83.68B	24.20	9.87%	1.98%	2.42%	4.02%
NIBE.B	64 Neutral	72.92B	27.06	3.66%	0.83%	-4.57%	72.98%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.