SKF AB (SKF.B) AI Stock Analysis

• Market Cap: kr107.05B
• Dividend Yield: 3.19%
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 19.9
• Beta (1Y): 1.39
• 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: 426,420,260
• 10 Day Avg. Volume: 1,011,093
• 30 Day Avg. Volume: 1,185,701
• 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: kr250.50
• Price Target Upside: 3.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 70 Outperform
• Price Target: kr258.00 ▲(6.22% Upside)

SKF AB's overall stock score reflects a stable financial foundation with a strong balance sheet and improving cash flow. Technical analysis indicates a neutral market position, while valuation metrics suggest a fair market price. The absence of earnings call data and corporate events limits further insights.

SKF AB 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, which include bearings, seals, and lubrication systems, as well as related services. The company operates in multiple segments, including Industrial and Automotive, with significant revenue contributions from both sectors. Key revenue streams include direct sales to manufacturers, distributors, and service providers. SKF also offers value-added services such as condition monitoring, predictive maintenance, and engineering consultancy, which not only enhance customer relationships but also provide additional income. The company benefits from strategic partnerships with major industrial players and OEMs, allowing it to strengthen its market position and expand its reach globally. Additionally, SKF invests in research and development to innovate and improve its product offerings, which helps in capturing a larger market share and driving sales growth.

SKF AB Financial Statement Overview

Summary

SKF AB demonstrates a stable financial position with strengths in its balance sheet and improving cash flow generation. However, the income statement reflects challenges in maintaining revenue growth and profitability margins.

Income Statement

SKF AB's income statement shows a mixed performance. The gross profit margin has been relatively stable, indicating good cost management. However, the net profit margin has declined in the TTM period, reflecting challenges in maintaining profitability. Revenue growth has been inconsistent, with a recent decline, suggesting potential market challenges. EBIT and EBITDA margins have also decreased, indicating pressure on operational efficiency.

Balance Sheet

The balance sheet of SKF AB is strong, with a manageable debt-to-equity ratio that has improved over time, indicating effective leverage management. The return on equity has been solid, although it has slightly decreased recently. The equity ratio remains healthy, suggesting a stable financial structure with adequate equity backing the assets.

Cash Flow

SKF AB's cash flow statement shows a positive trend in free cash flow growth in the TTM period, indicating improved cash generation. However, the operating cash flow to net income ratio has decreased, suggesting potential challenges in converting income into cash. The free cash flow to net income ratio remains moderate, reflecting a balanced cash flow position.

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 Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 242.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SKF.B, the sentiment is Positive. The current price of 242.9 is above the 20-day moving average (MA) of 237.45, above the 50-day MA of 237.77, and above the 200-day MA of 217.85, indicating a bullish trend. The MACD of 1.10 indicates Negative momentum. The RSI at 61.89 is Neutral, neither overbought nor oversold. The STOCH value of 86.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:SKF.B.

SKF AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SAND	76 Outperform	kr350.60B	23.41	16.39%	2.02%	-1.77%	21.13%
ALFA	72 Outperform	kr188.56B	23.82	20.37%	1.86%	2.66%	19.90%
SKF.B	70 Outperform	kr107.05B	19.94	9.91%	3.19%	-4.94%	-5.76%
TREL.B	69 Neutral	kr80.12B	23.17	9.31%	2.00%	2.42%	4.02%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
NIBE.B	63 Neutral	kr72.30B	26.83	9.09%	0.80%	-4.57%	72.98%
HUSQ.B	61 Neutral	kr26.71B	18.82	5.76%	41.76%	-1.74%	-0.59%