SKF AB (SKF.B) AI Stock Analysis

• Market Cap: kr109.48B
• Dividend Yield: 3.23%
• Average Volume (3M): 1.05M
• Price to Earnings (P/E): 20.4
• Beta (1Y): 1.38
• Revenue Growth: -4.94%
• EPS Growth: -5.76%
• Country: SE
• Employees: 38,426
• Sector: Industrials
• Sector Strength: 78
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 1.13
• Shares Outstanding: 426,392,060
• 10 Day Avg. Volume: 709,227
• 30 Day Avg. Volume: 1,047,811
• 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: kr237.50
• Price Target Upside: -0.42% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 76 Outperform
• Price Target: kr258.00 ▲(8.18% Upside)

SKF AB's overall stock score is driven primarily by its stable financial performance and positive technical indicators. The company's solid balance sheet and improving cash flow are significant strengths, while challenges in revenue growth and profitability margins are areas for improvement. The technical analysis supports a moderately bullish outlook, although the valuation does not stand out significantly.

SKF AB Business Overview & Revenue Model

Company Description

SKF AB is a leading global supplier of bearings, seals, lubrication systems, and mechatronics. Founded in 1907 and headquartered in Gothenburg, Sweden, SKF operates in various sectors including automotive, aerospace, industrial, and energy. The company is known for its innovative solutions that enhance the performance and reliability of machinery and equipment across a wide range of applications. SKF's extensive product portfolio also includes condition monitoring and maintenance services, which support industries in optimizing their operations and reducing downtime.

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 showcases strong financial stability with consistent profitability and solid cash flow generation. The balance sheet is strong with low leverage, but recent revenue contraction and a decrease in free cash flow growth present potential areas of concern.

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	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: 238.50
• 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.B, the sentiment is Positive. The current price of 238.5 is above the 20-day moving average (MA) of 233.12, above the 50-day MA of 224.73, and above the 200-day MA of 209.91, indicating a bullish trend. The MACD of 3.80 indicates Negative momentum. The RSI at 61.43 is Neutral, neither overbought nor oversold. The STOCH value of 79.26 is Neutral, 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	kr303.81B	20.97	16.41%	2.39%	-1.82%	12.60%
SKF.B	76 Outperform	kr109.48B	20.39	9.91%	3.23%	-4.94%	-5.76%
ALFA	72 Outperform	kr181.82B	22.65	20.37%	1.94%	2.66%	19.90%
Sector *	71 Outperform	¥269.83B	15.10	8.31%	2.77%	6.08%	11.04%
NIBE.B	71 Outperform	kr91.73B	37.87	7.97%	0.67%	-8.53%	-8.87%
TREL.B	66 Neutral	kr80.52B	23.29	9.31%	2.09%	2.42%	4.02%
HUSQ.B	66 Neutral	kr32.85B	25.71	5.10%	34.10%	-2.20%	-25.14%