SKF AB (SKF.B) AI Stock Analysis

• Market Cap: kr116.14B
• Dividend Yield: 3.19%
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 23.9
• Beta (1Y): 1.41
• Revenue Growth: -4.16%
• EPS Growth: -12.95%
• Country: SE
• Employees: 38,426
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 3.50
• Shares Outstanding: 426,420,260
• 10 Day Avg. Volume: 1,011,093
• 30 Day Avg. Volume: 1,185,701
• PEG Ratio: 11.39
• Price to Book (P/B): 1.58
• Price to Sales (P/S): 0.96
• P/FCF Ratio: 16.58
• 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: kr257.09
• Price Target Upside: 2.10% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: kr257.00 ▲(2.07% Upside)

SKF AB's overall stock score reflects a stable financial position with efficient operations but highlights challenges in revenue growth and cash flow generation. The technical indicators suggest mild bullish momentum, but the valuation metrics indicate potential overvaluation. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Market Position

SKF's strong market position as a leading supplier in essential industrial components provides a durable competitive advantage and supports long-term revenue stability.

Balance Sheet Health

A moderate debt-to-equity ratio reflects a solid financial position, ensuring financial flexibility and stability in capital management over the long term.

Operational Efficiency

Consistent gross profit margins indicate effective cost management, which supports sustainable profitability and operational efficiency.

Negative Factors

Revenue Growth Challenges

Negative revenue growth suggests difficulties in market expansion or product demand, which could impact long-term earnings potential.

Cash Flow Generation

Declining free cash flow growth indicates potential liquidity issues, which could constrain investment and operational flexibility.

Profitability Decline

A declining net profit margin points to reduced profitability, which may affect the company's ability to reinvest in growth and innovation.

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 products, including bearings and seals, which are essential components in machinery across various industries. The company operates through several key segments: Industrial, Automotive, and Aerospace, each contributing to its overall revenue. SKF's revenue model is supported by a combination of direct sales, distribution partnerships, and service contracts. Additionally, the company has established significant partnerships with major industrial players and automakers, which help secure long-term contracts and bolster its market presence. Revenue is further augmented by SKF's focus on innovation and sustainability, enabling it to offer advanced solutions that meet evolving customer needs, thus ensuring a steady stream of earnings.

SKF AB Financial Statement Overview

Summary

SKF AB demonstrates a stable financial position with efficient operations, but faces challenges in revenue growth and cash flow generation. The company maintains a healthy balance sheet with moderate leverage, but declining profitability and cash flow metrics suggest areas for improvement.

Income Statement

SKF AB's income statement shows a mixed performance. The company has maintained a stable gross profit margin around 27%, indicating efficient cost management. However, the net profit margin has decreased to 5.62% in the TTM, reflecting reduced profitability. Revenue growth has been negative recently, with a decline of 1.27% in the TTM, which is concerning. Despite this, EBIT and EBITDA margins remain healthy, suggesting operational efficiency.

Balance Sheet

The balance sheet of SKF AB reflects a solid financial position with a debt-to-equity ratio of 0.36 in the TTM, indicating moderate leverage. The return on equity has decreased to 9.53%, showing a decline in shareholder returns. However, the equity ratio remains strong, suggesting a stable capital structure. Overall, the company maintains a balanced approach to financing.

Cash Flow

SKF AB's cash flow statement reveals challenges in cash generation. The free cash flow growth rate has significantly declined by 23.35% in the TTM, indicating potential liquidity issues. The operating cash flow to net income ratio is 0.36, suggesting moderate cash conversion efficiency. The free cash flow to net income ratio of 0.51 indicates that cash generation is not fully aligned with profitability.

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 Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 251.80
• 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.B, the sentiment is Negative. The current price of 251.8 is above the 20-day moving average (MA) of 248.43, above the 50-day MA of 245.71, and above the 200-day MA of 229.27, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 35.20 is Neutral, neither overbought nor oversold. The STOCH value of 57.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:SKF.B.

SKF AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TREL.B	73 Outperform	kr86.61B	24.36	9.56%	1.95%	2.73%	7.56%
ALFA	71 Outperform	kr209.56B	25.12	20.42%	1.84%	3.54%	20.94%
SAND	70 Outperform	kr434.52B	29.58	16.39%	1.94%	-1.77%	21.13%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HUSQ.B	63 Neutral	kr25.97B	18.25	5.76%	2.20%	-1.74%	-0.59%
SKF.B	60 Neutral	kr116.14B	23.86	8.90%	3.19%	-4.16%	-12.95%
NIBE.B	57 Neutral	kr69.47B	24.21	9.65%	0.86%	-0.69%	269.86%