SKF AB Class A (SE:SKF.A)
:SKF.A
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SKF AB Class A
(SKF.A)
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Rating:58Neutral
Price Target:
kr249.00
▲(0.81% Upside)
Action:ReiteratedDate: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
Balance-sheet resilience
Improving leverage and a sizable equity base provide a durable financial buffer. Lower debt and strong equity support investment, fund separation costs, and reduce refinancing risk, preserving strategic optionality over the next 2–6 months.
Negative Factors
Weakened cash conversion
Material deterioration in free-cash-flow conversion limits financial flexibility. Lower FCF relative to earnings heightens sensitivity to working-capital swings, constrains organic funding for capex or separation costs, and raises execution risk over coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet resilience
Improving leverage and a sizable equity base provide a durable financial buffer. Lower debt and strong equity support investment, fund separation costs, and reduce refinancing risk, preserving strategic optionality over the next 2–6 months.
Read all positive factors
SKF AB Class A (SKF.A) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr110.55B
Dividend Yield3.16%
Average Volume (3M)5.63K
Price to Earnings (P/E)15.8
Beta (1Y)1.37
Revenue Growth-8.67%
EPS Growth-41.12%
CountrySE
Employees38,426
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)16.43
Revenue Forecast (FY)kr90.23B
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 ho...
How the Company Makes Money
SKF primarily makes money by selling engineered components and aftermarket solutions that support rotating equipment throughout its lifecycle. Key revenue streams typically include: (1) Bearings: Sales of rolling bearings (and related bearing unit...
SKF AB Class A Earnings Call Summary
Earnings Call Date:Apr 21, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 22, 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 | 9.00B | 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
238.47
Positive
242.51
Positive
240.12
Positive
Market Momentum
2.51
Negative
63.83
Neutral
80.52
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 247 is above the 20-day moving average (MA) of 228.03, above the 50-day MA of 238.47, and above the 200-day MA of 240.12, indicating a bullish trend. The MACD of 2.51 indicates Negative momentum. The RSI at 63.83 is Neutral, neither overbought nor oversold. The STOCH value of 80.52 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | kr267.26B | 3.43 | 6.71% | 1.46% | -10.52% | 96.23% | |
74 Outperform | kr87.13B | 20.02 | 9.65% | 1.95% | -2.11% | 1.86% | |
69 Neutral | kr234.60B | 27.89 | 20.42% | 1.84% | 0.90% | 6.26% | |
60 Neutral | kr110.55B | 15.69 | 8.90% | 3.19% | -8.67% | -41.12% | |
58 Neutral | kr110.55B | 15.81 | ― | 3.16% | -8.67% | -41.12% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
45 Neutral | kr91.27B | 22.83 | 9.65% | 0.86% | 0.79% | 94.12% |
* General Sector Average
SE:SKF.A
SKF AB Class A
242.50
52.23
27.45%
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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...
AB SKF Sets April Date and Procedures for 2026 Annual General Meeting
Mar 18, 2026
AB SKF has called its Annual General Meeting for 21 April 2026 at the Elite Park Avenue Hotel in Gothenburg, where shareholders will receive corporate updates and a summary of the president’s address will later be published on the company...
SKF Updates Share and Voting Structure After A-to-B Conversion
Jan 30, 2026
SKF AB has announced an updated share and voting structure following the conversion of a portion of its Series A shares into Series B shares under its Articles of Association. As of 30 January 2026, the company has a total of 455,351,068 shares ou...
SKF boosts margins amid weak auto markets as it accelerates Automotive spin-off plan
Jan 30, 2026
SKF AB reported flat organic sales for the fourth quarter of 2025 as growth in its Industrial division was offset by weakening demand in Automotive, while adjusted operating margin improved to 11.8% despite lower net sales, currency headwinds and ...
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.