SKF AB (SKF.B) AI Stock Analysis

• Market Cap: kr112.50B
• Dividend Yield: 3.16%
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 23.1
• Beta (1Y): 1.42
• Revenue Growth: -4.16%
• EPS Growth: -12.95%
• Country: SE
• Employees: 38,426
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 2.30
• 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: kr266.33
• Price Target Upside: 8.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: kr257.00 ▲(4.77% 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 a strong balance sheet and improving cash flow generation. However, challenges in maintaining revenue growth and profitability margins are evident, necessitating a focus on enhancing operational efficiency.

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	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: Positive
• Last Price: 245.30
• 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 245.3 is above the 20-day moving average (MA) of 244.07, above the 50-day MA of 241.05, and above the 200-day MA of 222.15, indicating a bullish trend. The MACD of -0.26 indicates Negative momentum. The RSI at 54.00 is Neutral, neither overbought nor oversold. The STOCH value of 90.25 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	kr352.23B	23.82	16.39%	2.02%	-1.77%	21.13%
TREL.B	73 Outperform	kr85.38B	24.06	9.56%	1.94%	2.73%	7.56%
ALFA	71 Outperform	kr184.01B	22.06	20.42%	1.93%	3.54%	20.94%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HUSQ.B	63 Neutral	kr25.26B	17.78	5.76%	2.22%	-1.74%	-0.59%
SKF.B	60 Neutral	kr112.50B	23.11	8.90%	3.16%	-4.16%	-12.95%
NIBE.B	58 Neutral	kr72.46B	26.89	9.65%	0.89%	-0.69%	269.86%