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

• Market Cap: kr113.08B
• Dividend Yield: 3.16%
• Average Volume (3M): 5.63K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 1.37
• Revenue Growth: -4.16%
• EPS Growth: -12.95%
• Country: SE
• Employees: 38,426
• Sector: General
• Sector Strength: N/A
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 2.30
• Shares Outstanding: 28,930,824
• 10 Day Avg. Volume: 5,124
• 30 Day Avg. Volume: 5,635
• PEG Ratio: 11.38
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 0.96
• P/FCF Ratio: 16.57
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: kr268.00 ▲(8.50% Upside)

SKF AB Class A's overall score reflects a solid financial foundation with strong profitability and strategic progress. However, challenges in cash flow, revenue growth, and market uncertainties weigh on the score. The technical indicators and valuation suggest moderate investment appeal.

Positive Factors

Business Model Strength

SKF's business model is robust, relying on essential components for diverse industries, ensuring steady demand and long-term revenue stability.

Strategic Initiatives

Strategic initiatives like Automotive separation and Industrial rightsizing enhance focus and efficiency, potentially boosting profitability and market position.

Innovation and Sustainability

SKF's commitment to innovation and sustainability aligns with industry trends, enhancing competitive advantage and long-term growth potential.

Negative Factors

Negative Revenue Growth

Declining revenue growth poses a risk to future profitability, indicating potential challenges in market demand or competitive pressures.

Weaker Cash Flow

Weaker cash flow due to separation costs may limit SKF's ability to invest in growth opportunities and maintain operational flexibility.

FX Headwinds

Significant FX headwinds can erode profit margins and competitiveness, impacting SKF's financial performance in international markets.

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 AB generates revenue primarily through the sale of its core products, including bearings, seals, and lubrication systems. These products are essential components in a wide range of machinery used in various industries, leading to steady demand. The company also offers maintenance services and solutions, which provide ongoing revenue through service contracts and aftermarket sales. Key revenue streams include direct sales to OEMs (Original Equipment Manufacturers), distribution through authorized resellers, and service agreements with end-users. SKF has established significant partnerships with major industrial players, enhancing its market reach and driving growth. Additionally, the company's focus on innovation and sustainability allows it to create value-added offerings, contributing to its earnings growth.

SKF AB Class A Financial Statement Overview

Summary

SKF AB Class A demonstrates strong profitability margins and a stable balance sheet with a debt-to-equity ratio of 0.36 and a return on equity of 9.5%. However, challenges in revenue growth and cash flow generation, with a significant decline in free cash flow, pose risks to long-term financial health.

Income Statement

SKF AB Class A has shown a mixed performance in its income statement. The TTM data indicates a slight decline in revenue growth, but the company maintains a solid gross profit margin of 27.4% and a respectable net profit margin of 5.6%. The EBIT and EBITDA margins are healthy at 9.5% and 14.3%, respectively, suggesting efficient operational management. However, the negative revenue growth rate is a concern and could impact future profitability if not addressed.

Balance Sheet

The balance sheet of SKF AB Class A reflects a stable financial position with a debt-to-equity ratio of 0.36, indicating moderate leverage. The return on equity is decent at 9.5%, showing effective use of shareholder funds. The equity ratio stands at 50.3%, suggesting a strong equity base. However, the decrease in stockholders' equity over the years could pose a risk if the trend continues.

Cash Flow

SKF AB Class A's cash flow statement reveals challenges in free cash flow growth, with a significant decline of 23.4% in the TTM period. The operating cash flow to net income ratio is 0.36, indicating that cash generation from operations is lower compared to net income. The free cash flow to net income ratio is 0.51, suggesting that a substantial portion of earnings is converted into free cash flow. Improving cash flow generation will be crucial for sustaining operations and funding growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	94.34B	98.72B	103.88B	96.93B	81.73B	74.85B
Gross Profit	25.73B	27.37B	26.49B	24.47B	23.27B	16.99B
EBITDA	13.29B	14.61B	14.34B	11.51B	13.76B	10.08B
Net Income	4.87B	6.47B	6.39B	4.47B	7.33B	4.30B
Balance Sheet
Total Assets	106.95B	119.41B	111.90B	110.92B	99.63B	90.56B
Cash, Cash Equivalents and Short-Term Investments	7.63B	11.09B	13.65B	11.22B	13.66B	14.64B
Total Debt	15.63B	20.04B	21.69B	21.27B	19.21B	17.82B
Total Liabilities	50.95B	57.44B	56.95B	56.88B	54.26B	54.84B
Stockholders Equity	53.81B	59.65B	52.74B	51.93B	43.65B	34.31B
Cash Flow
Free Cash Flow	4.17B	5.70B	8.02B	428.00M	1.36B	4.89B
Operating Cash Flow	8.92B	10.79B	13.78B	5.64B	5.25B	8.27B
Investing Cash Flow	-2.54B	-5.60B	-5.87B	-5.35B	-3.15B	-3.01B
Financing Cash Flow	-8.09B	-7.57B	-4.51B	-3.40B	-3.51B	2.69B

SKF AB Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 247.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 247 is above the 20-day moving average (MA) of 245.75, above the 50-day MA of 246.46, and above the 200-day MA of 226.59, indicating a bullish trend. The MACD of 0.58 indicates Negative momentum. The RSI at 53.52 is Neutral, neither overbought nor oversold. The STOCH value of 74.81 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
TREL.B	73 Outperform	kr86.61B	23.30	9.56%	1.95%	2.73%	7.56%
ALFA	71 Outperform	kr204.31B	24.44	20.42%	1.84%	3.54%	20.94%
SKF.A	69 Neutral	kr113.08B	23.21	―	3.16%	-4.16%	-12.95%
HEXA.B	60 Neutral	kr295.28B	38.86	6.71%	1.46%	-0.93%	-34.25%
SKF.B	60 Neutral	kr113.08B	23.17	8.90%	3.19%	-4.16%	-12.95%
NIBE.B	57 Neutral	kr75.06B	25.90	9.65%	0.86%	-0.69%	269.86%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

SKF AB Class A Corporate Events

SKF Announces Strategic Separation of Automotive Business and New Financial Targets

SKF announced the separation of its Automotive business from the Industrial segment, aiming to unlock significant value by creating two standalone entities. The company set new financial targets for both segments, focusing on organic growth, operating margins, and capital efficiency. SKF’s strategy includes scaling services, accelerating specialized solutions, and optimizing the supply chain for the Industrial business, while the Automotive business will focus on high-growth areas and a leaner setup. The separation is expected to enhance SKF’s market positioning and operational efficiency.

The most recent analyst rating on ($SE:SKF.A) stock is a Hold with a SEK256.00 price target. To see the full list of analyst forecasts on SKF AB Class A stock, see the SE:SKF.A Stock Forecast page.

SKF AB Class A Reports Resilient Q3 2025 Performance Amid Market Challenges

SKF AB Class A reported a resilient performance in Q3 2025, achieving a 2% organic sales growth despite challenging market conditions and currency headwinds. The Industrial business drove growth, particularly in Asia and the Americas, while the Automotive sector faced declining demand. The company is progressing with the separation of its Automotive business, aiming for a Nasdaq Stockholm listing by mid-2026. Additionally, SKF is investing in a new global Super-precision bearing center in Italy to capitalize on growth opportunities in electrification and automation.

The most recent analyst rating on ($SE:SKF.A) stock is a Hold with a SEK256.00 price target. To see the full list of analyst forecasts on SKF AB Class A stock, see the SE:SKF.A Stock Forecast page.