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SKF AB Class B (SKFRY)
:SKFRY
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SKF AB
(OTC:SKFRY)
Rating:78Outperform
Price Target:
$27.00
▲(8.22%Upside)
SKF AB (SKFRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.35B
Dividend Yield0.17%
Average Volume (3M)1.28K
Price to Earnings (P/E)22.3
Beta (1Y)1.02
Revenue Growth-2.49%
EPS Growth-4.87%
CountryUS
Employees38,426
SectorIndustrials
Sector Strength93
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)0.12
Shares Outstanding426,392,060
10 Day Avg. Volume1,401
30 Day Avg. Volume1,283
Financial Highlights & Ratios
PEG Ratio-11.36
Price to Book (P/B)1.79
Price to Sales (P/S)0.00
P/FCF Ratio23.25
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$25.00Price Target Upside0.20% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
SKF AB Business Overview & Revenue Model
Company DescriptionAB 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 MoneySKF AB generates revenue primarily through the sale of its wide array of products, including bearings, seals, and lubrication systems. These products are essential components in various industrial and automotive applications, providing the necessary support for moving parts in machinery and vehicles. The company also offers maintenance and reliability services, which provide a recurring revenue stream through service contracts and aftermarket sales. Additionally, SKF collaborates with various industrial partners to develop innovative solutions that improve operational efficiency, further contributing to its earnings. These partnerships and the company's extensive distribution network enhance its market reach and customer base, bolstering its financial performance.
SKF AB Earnings Call Summary
Earnings Call Date:Jul 18, 2025
(Q2-2025)
| % Change Since: 7.54%|
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed sentiment. While the company showcased strong operational resilience and growth in the industrial segment, challenges in the automotive sector and significant restructuring costs posed notable concerns.Q2-2025 Updates
Positive Updates
Strong Operating Margin Amid Difficult Conditions
The company achieved a strong adjusted operating margin of 13.3%, up from the previous year, despite tough market conditions and significant FX headwinds.
Improved Cash Flow
Net cash flow improved significantly to SEK 2.8 billion, up from SEK 2.2 billion the previous year.
Positive Growth in Industrial Business
The industrial business saw a positive organic growth of 2.4%, driven by strong demand in Asia and improvements in aerospace, lubrication, and magnetics.
Effective Cost Management
The company maintained cost efficiency and was able to offset tariff impacts through pricing strategies and improved supplier management.
Strong Performance in Aerospace Segment
The aerospace segment saw a CAGR of 12% from 2022 to 2025, with an improvement in adjusted operating margin by 8 percentage points.
Negative Updates
Decline in Automotive Sales
The automotive segment experienced an organic decline of 6.2%, primarily driven by weak demand in Europe and the Americas.
Significant Restructuring Costs
The company incurred SEK 2 billion in restructuring charges related to a rightsizing program, contributing to lower gross margins.
Continued Challenges in European Automotive Market
The European automotive market faced tough conditions, particularly in light vehicles, leading to a decline in demand.
Uncertainty in Automotive Separation
The separation of the automotive business faces critical milestones with potential risks of delays.
Company Guidance
During the Q2 2025 earnings call, SKF reported a slight organic sales decline of 0.2% but achieved a strong adjusted operating margin of 13.3%, an improvement from the previous year, despite facing significant FX headwinds. Net sales for the quarter were just over SEK 23 billion, with net cash flow rising to SEK 2.8 billion from SEK 2.2 billion last year. The industrial business, which accounted for 72% of sales and 89% of adjusted operating profit, showed a positive organic growth of 2.4%, while the automotive business, contributing 28% of sales and 11% of profit, experienced a 6.2% organic decline. The company is progressing with its rightsizing program, which aims to reduce 1,700 staff positions, netting 1,200, and anticipates SEK 2 billion in savings by 2027. The program's restructuring charge is SEK 2 billion, with the cash impact expected mainly in 2026. SKF's strategic initiatives, including pricing, portfolio management, and cost efficiencies, are credited for the resilient margin performance. The company continues to drive its automotive separation and enhance competitiveness in the industrial segment, with a particular focus on commercial excellence and operational efficiencies.SKF AB Financial Statement Overview
Summary
SKF AB exhibits strong financial health with a solid balance sheet marked by zero total debt and consistent equity growth. Income statement performance is steady, though recent revenue declines suggest a need for strategic adjustments. Cash flow is generally healthy, but recent dips in free cash flow require attention.Income Statement
SKF AB's revenue has shown a steady growth trajectory with a recent slight decline from 2023 to 2024. Gross and EBIT margins have improved over the years, reflecting efficiency and cost control. The net profit margin has remained stable, indicating consistent profitability. However, the recent minor revenue drop might signal a need for strategic adjustments.78
Positive
Balance Sheet
The company exhibits strong financial stability with no total debt in 2024, improving its debt-to-equity ratio significantly. Equity growth has been consistent, contributing positively to the equity ratio. Return on Equity is solid, highlighting effective use of shareholder funds. The zero-debt position reduces financial risk significantly.85
Very Positive
Cash Flow
Operating cash flow has shown fluctuations, but overall, it supports net income well. Free cash flow has decreased in recent periods, suggesting potential reinvestment or cash management challenges. Despite this, operating cash flows remain healthy, indicating good cash generation from core operations.72
Positive
| 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 | 26.34B | 24.47B | 23.27B | 16.99B |
| EBITDA | 14.61B | 14.78B | 12.28B | 13.82B | 10.23B |
| 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 | 13.32B | 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 | 5.11B | 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
Positive
24.95
Price Trends
22.46
Positive
21.21
Positive
20.14
Positive
Market Momentum
0.65
Negative
69.71
Neutral
92.98
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKFRY, the sentiment is Positive. The current price of 24.95 is above the 20-day moving average (MA) of 23.37, above the 50-day MA of 22.46, and above the 200-day MA of 20.14, indicating a bullish trend. The MACD of 0.65 indicates Negative momentum. The RSI at 69.71 is Neutral, neither overbought nor oversold. The STOCH value of 92.98 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SKFRY.
SKF AB Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $17.23B | 17.60 | 18.18% | 2.51% | -0.76% | -2.62% | |
78 Outperform | $11.35B | 22.27 | 9.46% | 0.17% | -2.49% | -4.87% | |
77 Outperform | $12.12B | 50.12 | 8.51% | ― | 4.87% | 19.66% | |
76 Outperform | $12.50B | 27.84 | 34.83% | 1.32% | -2.29% | -14.49% | |
70 Outperform | $11.25B | 31.47 | 4.03% | 4.44% | -3.04% | ― | |
70 Outperform | $5.65B | 17.43 | 11.85% | 1.68% | -3.69% | -11.76% | |
65 Neutral | $11.05B | 15.76 | 5.13% | 1.92% | 3.11% | -24.90% |
* Industrials Sector Average
Performance Comparison
SKFRY
SKF AB
24.85
6.92
38.59%
LECO
Lincoln Electric Holdings
227.72
20.54
9.91%
RBC
RBC Bearings
388.37
96.35
32.99%
SNA
Snap-on
330.27
56.71
20.73%
SWK
Stanley Black & Decker
73.90
-17.79
-19.40%
TKR
Timken Company
81.66
-2.10
-2.51%
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.