SKF AB Class B (SKFRY)
OTHER OTC:SKFRY
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SKF AB
(OTC:SKFRY)
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Rating:61Neutral
Price Target:
$24.50
▼(-4.89% Downside)
Action:ReiteratedDate:02/01/26
The score is driven mainly by solid balance-sheet quality and constructive (but risk-balanced) earnings-call guidance, offset by weakening recent profitability/revenue trends and inconsistent cash conversion. Technicals are mixed with soft near-term momentum, and valuation is a headwind due to a relatively high P/E despite a ~3% dividend yield.
Positive Factors
Balance-sheet strength and deleveraging
SKF's materially reduced leverage and stable equity base provide durable financial flexibility. Lower net debt and a net-debt/EBITDA near 0.5 support ongoing capex, dividend policy and the planned Automotive separation, reducing refinancing risk and preserving investment optionality over the next 2–3 years.
Negative Factors
Weak, low-margin Automotive business
A sizable revenue share from an Automotive division that generates minimal profit and is in structural decline drags corporate profitability and returns. Ongoing weak auto volumes and low Automotive margins will constrain consolidated margins and complicate cash flow until the spin and margin uplift materialize.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet strength and deleveraging
SKF's materially reduced leverage and stable equity base provide durable financial flexibility. Lower net debt and a net-debt/EBITDA near 0.5 support ongoing capex, dividend policy and the planned Automotive separation, reducing refinancing risk and preserving investment optionality over the next 2–3 years.
Read all positive factors
SKF AB (SKFRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.70B
Dividend Yield2.98%
Average Volume (3M)440.00
Price to Earnings (P/E)28.3
Beta (1Y)1.13
Revenue Growth-0.39%
EPS Growth-11.34%
CountryUS
Employees38,426
SectorIndustrials
Sector Strength72
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)0.40
Shares Outstanding426,420,260
10 Day Avg. Volume0
30 Day Avg. Volume440
Financial Highlights & Ratios
PEG Ratio-0.66
Price to Book (P/B)2.08
Price to Sales (P/S)1.21
P/FCF Ratio27.12
Enterprise Value/Market Cap9.95
Enterprise Value/Revenue1.16
Enterprise Value/Gross Profit4.36
Enterprise Value/Ebitda8.60
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.82
Revenue Forecast (FY)$9.95B
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 ho...
How the Company Makes Money
SKF primarily makes money by selling engineered components and reliability solutions tied to rotating machinery, along with aftermarket and service revenue. Key revenue streams include: (1) Bearings and bearing-related products: Sales of ball and ...
SKF AB Earnings Call Summary
Earnings Call Date:Jan 30, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 21, 2026
Earnings Call Sentiment Neutral
The call presents a mixed but constructive picture: SKF demonstrated clear operational and margin resilience (improved adjusted margins, Industrial outperformance, completion of a SEK 5bn manufacturing program, progress on rightsizing and deleveraging) while facing material near-term headwinds from weak Automotive demand, significant FX impacts that depressed reported sales (~10.6% FX drag in Q4) and separation-related one-off costs and dissynergies that will weigh on near-term cash flow. Management articulated a credible plan and timeline for the Automotive spin (Q4 2026) and reiterated longer-term savings targets, but the balance between rightsizing savings and separation dissynergies in 2026 introduces execution risk. Overall the positives and negatives are roughly balanced.Positive Updates
Improved Adjusted Operating Margins
Adjusted operating margin improved to 11.8% in Q4 and to 12.7% for full-year 2025, reflecting stronger margin resilience despite challenging markets and FX headwinds.
Negative Updates
Weak Automotive Demand and Low Margins
Automotive represented 27% of Q4 net sales but only ~4% of adjusted operating profit; Automotive organic growth was close to -6% in Q4 and -4% for the full year, with a weak Q4 adjusted operating margin of 1.7%.
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Q4-2025 Updates
Positive
Negative
Improved Adjusted Operating Margins
Adjusted operating margin improved to 11.8% in Q4 and to 12.7% for full-year 2025, reflecting stronger margin resilience despite challenging markets and FX headwinds.
Read all positive updates
Company Guidance
Management guided that Q1 demand should remain at Q4 levels with organic sales expected to strengthen somewhat year‑over‑year (Q4 had flat organic growth), but warned of a further FX earnings headwind of roughly SEK 800m in Q1 driven by a weaker dollar and Turkish lira; tariffs are expected to be largely compensated in Q1 given current rates. For 2026 they expect a tax rate of ~28% (ex. automotive separation/divestments), total CapEx of about SEK 5bn (industrial CapEx ~5% of sales, with additional Automotive separation‑related investment included), and one‑off separation and footprint optimization costs of around SEK ‑2.5bn to ‑3bn for the year (consistent with the SEK 6.5bn guidance for Q4 2025–2028). They reiterated rightsizing savings will reach a SEK 2bn run‑rate by end‑2027 (phased linearly) and confirmed an Automotive listing targeted for Q4 2026; for context Q4 net sales were ~SEK 22bn and adjusted operating margin 11.8% (FY net sales just under SEK 92bn, FY adjusted operating margin 12.7%).SKF AB Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 91.58B | 98.72B | 103.88B | 96.93B | 81.73B |
| Gross Profit | 24.52B | 27.37B | 26.34B | 24.47B | 23.27B |
| EBITDA | 12.38B | 14.61B | 14.78B | 11.54B | 13.82B |
| Net Income | 3.93B | 6.47B | 6.39B | 4.47B | 7.33B |
Balance Sheet | |||||
| Total Assets | 106.42B | 119.41B | 111.90B | 110.92B | 99.63B |
| Cash, Cash Equivalents and Short-Term Investments | 9.15B | 11.09B | 13.32B | 11.22B | 13.66B |
| Total Debt | 15.34B | 20.04B | 21.69B | 21.27B | 19.21B |
| Total Liabilities | 50.75B | 57.44B | 56.95B | 56.88B | 54.26B |
| Stockholders Equity | 53.56B | 59.65B | 52.74B | 51.93B | 43.65B |
Cash Flow | |||||
| Free Cash Flow | 4.10B | 5.11B | 8.02B | 428.00M | 1.36B |
| Operating Cash Flow | 7.69B | 10.79B | 13.78B | 5.64B | 5.25B |
| Investing Cash Flow | -1.50B | -5.60B | -5.87B | -5.35B | -3.15B |
| Financing Cash Flow | -8.29B | -7.57B | -4.51B | -3.40B | -3.51B |
SKF AB Technical Analysis
Negative
25.76
Price Trends
26.66
Negative
26.42
Negative
25.40
Negative
Market Momentum
-1.09
Positive
37.86
Neutral
63.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKFRY, the sentiment is Negative. The current price of 25.76 is above the 20-day moving average (MA) of 24.75, below the 50-day MA of 26.66, and above the 200-day MA of 25.40, indicating a bearish trend. The MACD of -1.09 indicates Positive momentum. The RSI at 37.86 is Neutral, neither overbought nor oversold. The STOCH value of 63.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SKFRY.
SKF AB Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $17.36B | 53.36 | 8.53% | ― | 8.27% | 19.06% | |
78 Outperform | $18.79B | 17.98 | 17.70% | 2.52% | 0.24% | -1.85% | |
72 Outperform | $13.78B | 24.20 | 37.15% | 1.22% | 3.27% | 10.89% | |
72 Outperform | $6.89B | 20.35 | 9.35% | 1.61% | -1.01% | -12.13% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $10.98B | 28.82 | 4.47% | 4.42% | -1.40% | ― | |
61 Neutral | $10.70B | 28.31 | 7.22% | 2.98% | -0.39% | -11.34% |
* Industrials Sector Average
SKFRY
SKF AB
23.56
2.98
14.46%
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251.46
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30.44%
RBC
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548.95
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SNA
Snap-on
362.00
35.60
10.91%
SWK
Stanley Black & Decker
70.81
-3.34
-4.51%
TKR
Timken Company
99.06
26.52
36.55%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.