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

• Market Cap: kr107.99B
• Dividend Yield: 3.16%
• Average Volume (3M): 5.63K
• Price to Earnings (P/E): 27.6
• 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): 3.50
• Shares Outstanding: 28,930,820
• 10 Day Avg. Volume: 5,124
• 30 Day Avg. Volume: 5,635
• PEG Ratio: -0.73
• Price to Book (P/B): 2.10
• Price to Sales (P/S): 1.23
• P/FCF Ratio: 24.68
• 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: 63 Neutral
• Price Target: kr250.00 ▲(1.21% Upside)

The score is driven mainly by stable underlying financial health (stronger balance sheet and positive free cash flow) but tempered by ongoing profitability compression and limited top-line momentum. Technicals are currently weak with the stock trading below key moving averages, and valuation looks somewhat expensive versus recent earnings pressure despite a supportive dividend. Earnings-call guidance was mixed, with cost and separation execution positives offset by notable FX headwinds and Automotive weakness.

Positive Factors

Conservative balance sheet and deleveraging

Steady deleveraging to a 0.29 debt/equity level provides durable financial flexibility. Lower leverage supports investment, dividend continuity and the planned Automotive separation funding, reducing refinancing risk and improving resilience to cyclical industrial and automotive demand shocks over the next 2–3 years.

Consistent free cash flow generation

Persistent positive free cash flow, with improvement in 2025, underpins self-funded capex, dividend payouts and separation costs. Reliable cash generation enhances strategic optionality for restructuring, manufacturing investments and smoothing volatility from cyclical end markets over multiple years.

High-margin, resilient Industrial franchise

Industrial operations produce the majority of sales and nearly all adjusted operating profit, with mid-teens margins and positive organic growth. This market-leading, diversified industrial exposure provides a durable earnings and cash-flow base, cushioning group performance despite volatility in Automotive.

Negative Factors

Weak Automotive performance and low margins

A large Automotive division with negative organic growth and single-digit margins materially drags consolidated profitability. As Automotive represents a meaningful revenue slice, structural weakness or a slow recovery will continue to compress group margins and complicate the path to sustained ROE improvement.

Revenue declines and margin compression

Consecutive yearly revenue declines and multi-year margin erosion indicate structural pressures from adverse mix, pricing and cost dynamics. Persistent top-line weakness limits operating leverage and constrains long-term earnings power, reducing scope for durable margin recovery absent structural commercial improvements.

Material FX headwinds and separation costs

Significant FX sensitivity and substantial one-off separation and footprint costs will weigh on near-to-medium term cash flow and reported earnings. These structural program costs and currency volatility can delay margin recovery and consume flexibility as Automotive is separated and both entities absorb dissynergies and retool operations.

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

Financial profile is stable but softening: earnings and margins compressed in 2025 (net margin down to 4.29% and operating margin down to 8.47%) alongside modest revenue declines, partially offset by a conservative balance sheet with declining leverage (debt/equity down to 0.29) and consistently positive free cash flow (up in 2025, though conversion and cash flow show some volatility).

Income Statement

Profitability remains solid but has clearly softened. Revenue declined in 2024 (-0.05%) and again in 2025 (-2.92%), while earnings fell meaningfully (net margin moved down from 6.56% in 2024 to 4.29% in 2025, and operating margin from 10.31% to 8.47%). Longer-term, margins peaked in 2021 and have trended lower since, signaling some pressure from mix, pricing, or cost inflation despite still-healthy gross margin levels in the mid-to-high 20% range.

Balance Sheet

The balance sheet looks conservatively positioned with moderate leverage and improving capital structure. Debt relative to equity has declined steadily from 0.52 (2020) to 0.29 (2025), supported by equity growth over time. Returns on equity are positive but have cooled (from 10.85% in 2024 to 7.33% in 2025), reflecting the earnings downshift rather than balance-sheet stress.

Cash Flow

Cash generation is generally supportive, with free cash flow positive each year and improving in 2025 (+9.25%). However, conversion has weakened versus earlier years: free cash flow relative to net income is ~0.54 in 2025 (still reasonable), but operating cash flow relative to sales is lower than the 2023–2024 range (8.39B on 91.58B revenue in 2025). The 2022 dip in free cash flow highlights some volatility, even though the last two years show better normalization.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	91.58B	98.72B	103.88B	96.93B	81.73B
Gross Profit	24.52B	27.37B	26.49B	24.47B	23.27B
EBITDA	12.38B	14.61B	14.34B	11.51B	13.76B
Net Income	3.93B	6.47B	6.39B	4.47B	7.33B
Balance Sheet
Total Assets	106.42B	119.41B	111.90B	110.92B	99.63B
Cash, Cash Equivalents and Short-Term Investments	9.47B	11.09B	13.65B	11.22B	13.66B
Total Debt	15.34B	20.04B	21.69B	21.27B	19.21B
Total Liabilities	50.75B	57.44B	56.95B	56.88B	54.26B
Stockholders Equity	53.56B	59.65B	52.74B	51.93B	43.65B
Cash Flow
Free Cash Flow	4.56B	5.70B	8.02B	428.00M	1.36B
Operating Cash Flow	8.39B	10.79B	13.78B	5.64B	5.25B
Investing Cash Flow	-1.50B	-5.60B	-5.87B	-5.35B	-3.15B
Financing Cash Flow	-8.29B	-7.57B	-4.51B	-3.40B	-3.51B

SKF AB Class A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 247.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 247 is below the 20-day moving average (MA) of 248.25, above the 50-day MA of 246.36, and above the 200-day MA of 231.14, indicating a neutral trend. The MACD of -1.19 indicates Positive momentum. The RSI at 40.76 is Neutral, neither overbought nor oversold. The STOCH value of 24.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	71 Outperform	kr218.15B	26.37	20.42%	1.84%	3.54%	20.94%
SKF.A	63 Neutral	kr107.99B	27.60	―	3.16%	-4.16%	-12.95%
TREL.B	61 Neutral	kr83.03B	23.35	9.56%	1.95%	2.73%	7.56%
HEXA.B	60 Neutral	kr273.81B	40.07	6.71%	1.46%	-0.93%	-34.25%
NIBE.B	57 Neutral	kr68.87B	24.00	9.65%	0.86%	-0.69%	269.86%
SKF.B	56 Neutral	kr107.99B	27.49	8.90%	3.19%	-4.16%	-12.95%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

SKF AB Class A Corporate Events

SKF Updates Share and Voting Structure After A-to-B Conversion

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 outstanding, comprising 28,918,320 Series A shares and 426,432,748 Series B shares, corresponding to 71,561,594.8 votes, and confirms that it holds no treasury shares. The change, disclosed under financial market transparency rules, fine-tunes the balance between SKF’s two share classes and may affect the distribution of voting rights among shareholders without altering the company’s overall capital base.

The most recent analyst rating on ($SE:SKF.A) stock is a Hold with a SEK250.00 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 boosts margins amid weak auto markets as it accelerates Automotive spin-off plan

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 soft market conditions. For the full year, the group delivered a resilient adjusted operating margin of 12.7% and solid operating cash flow, supported by cost reductions, rightsizing, footprint optimization and lower material costs, although items affecting comparability, including costs related to the Automotive separation and plant closures, weighed on reported profit and earnings per share. Management highlighted that the ongoing separation of the Automotive business, targeted for listing on Nasdaq Stockholm in the fourth quarter of 2026, is central to creating two fit-for-purpose companies: a higher-margin, pure-play industrial group aiming for an adjusted operating margin above 19% over a business cycle, and an Automotive unit focused on faster-growing, higher-margin segments. Despite geopolitical uncertainty, tariffs and soft demand, SKF expects market conditions in the first quarter of 2026 to remain broadly similar to the fourth quarter but with slightly stronger organic sales on easier comparables, and the board has proposed a dividend of SEK 7.75 per share, underlining confidence in the group’s financial position and long-term value-creation strategy.

The most recent analyst rating on ($SE:SKF.A) stock is a Hold with a SEK250.00 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 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.