SKF AB (SKF.B) AI Stock Analysis

• Market Cap: kr104.21B
• Dividend Yield: 3.39%
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): 19.4
• Beta (1Y): 1.37
• Revenue Growth: -4.94%
• EPS Growth: -5.76%
• Country: SE
• Employees: 38,426
• Sector: Industrials
• Sector Strength: 86
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 1.13
• Shares Outstanding: 426,392,060
• 10 Day Avg. Volume: 1,343,066
• 30 Day Avg. Volume: 1,067,319
• PEG Ratio: -11.36
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.25
• 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: kr238.00
• Price Target Upside: 0.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 75 Outperform
• Price Target: kr264.00 ▲(11.58%Upside)

SKF AB's stock score reflects strong financial stability and technical strength with bullish momentum, offset by recent revenue contraction and free cash flow concerns. The stock's valuation is fair, supported by a reasonable P/E ratio and an attractive dividend yield.

SKF AB Business Overview & Revenue Model

Company Description

SKF AB is a Swedish multinational company that specializes in the manufacturing and distribution of bearings, seals, lubrication systems, and services related to rotating equipment and machinery. Established in 1907, the company operates across various sectors including automotive, aerospace, industrial, and energy. SKF is renowned for its high-quality engineering solutions that enhance the performance and lifespan of machinery and equipment.

How the Company Makes Money

SKF AB's revenue model primarily revolves around the sale of bearings and related products, which constitute a significant portion of its income. The company also generates revenue through its extensive range of services, which include maintenance, reliability engineering, and training aimed at optimizing equipment performance for its customers. In addition, SKF benefits from strategic partnerships and collaborations with major industrial players, which help in expanding its market reach and technological capabilities. The company's earnings are further bolstered by its global presence and ability to cater to a diverse set of industries, ensuring a steady demand for its products and services.

SKF AB Financial Statement Overview

Summary

SKF AB showcases strong financial stability with consistent profitability and solid cash flow generation. While the company maintains a strong balance sheet with low leverage, recent revenue contraction and a decrease in free cash flow growth present potential areas of concern. Continued focus on revenue growth and cash flow optimization will be crucial for future performance.

Income Statement

SKF AB's income statement shows a stable financial performance with a healthy gross profit margin of 27.7% in 2024, slightly improving from 25.5% in 2020. The net profit margin has remained stable around 6.6% in 2024, consistent with previous years. Revenue growth rate was modest at -4.0% from 2023 to 2024. The EBIT margin is strong at 10.5% in 2024, although slightly lower than in 2021. Overall, the company demonstrates stability and profitability, but recent revenue contraction may be a concern.

Balance Sheet

The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.34 in 2024, indicating low financial leverage. The equity ratio improved to 50.0% in 2024, showing increased financial stability. Return on equity was 10.9% in 2024, up from 8.6% in 2020, indicating efficient use of equity. SKF AB maintains a solid financial structure with low leverage and good equity returns, although focus on further improving asset utilization could enhance performance.

Cash Flow

The cash flow statement shows a strong operating cash flow to net income ratio of 1.67 in 2024, indicating robust cash generation relative to net income. Free cash flow decreased by 36.3% from 2023 to 2024, but remains positive. The free cash flow to net income ratio stands at 0.79 in 2024, reflecting adequate free cash generation. SKF AB's cash flow management is sound, yet the decline in free cash flow growth warrants attention.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	98.72B	103.88B	96.93B	81.73B	74.85B
Gross Profit	27.37B	26.49B	24.47B	23.27B	16.99B
EBITDA	14.61B	14.34B	11.51B	13.76B	10.08B
Net Income	6.47B	6.39B	4.47B	7.33B	4.30B
Balance Sheet
Total Assets	119.41B	111.90B	110.92B	99.63B	90.56B
Cash, Cash Equivalents and Short-Term Investments	11.03B	13.65B	11.22B	13.66B	14.64B
Total Debt	20.04B	21.69B	21.27B	19.21B	17.82B
Total Liabilities	57.44B	56.95B	56.88B	54.26B	54.84B
Stockholders Equity	59.65B	52.74B	51.93B	43.65B	34.31B
Cash Flow
Free Cash Flow	5.70B	8.02B	428.00M	1.36B	4.89B
Operating Cash Flow	10.79B	13.78B	5.64B	5.25B	8.27B
Investing Cash Flow	-5.60B	-5.87B	-5.35B	-3.15B	-3.01B
Financing Cash Flow	-7.57B	-4.51B	-3.40B	-3.51B	2.69B

SKF AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 236.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 236.6 is above the 20-day moving average (MA) of 227.59, above the 50-day MA of 217.87, and above the 200-day MA of 207.02, indicating a neutral trend. The MACD of 3.82 indicates Positive momentum. The RSI at 46.52 is Neutral, neither overbought nor oversold. The STOCH value of 8.01 is Positive, 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
MYCR	80 Outperform	kr41.73B	21.07	31.98%	1.26%	24.55%	32.41%
ALFA	78 Outperform	kr176.28B	21.96	20.37%	1.98%	2.66%	19.90%
ATCO.B	78 Outperform	kr701.13B	23.01	28.28%	2.19%	0.54%	1.79%
SAND	76 Outperform	kr304.94B	21.05	16.41%	2.38%	-1.82%	12.60%
TREL.B	75 Outperform	kr78.75B	22.78	9.31%	2.09%	2.42%	4.02%
SKF.B	75 Outperform	kr104.21B	19.40	9.91%	3.39%	-4.94%	-5.76%
Sector *	63 Neutral	kr60.40B	12.34	1.88%	2.39%	0.11%	-4.39%