SKF AB Class B (SKFRY)
OTHER OTC:SKFRY
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SKF AB
(OTC:SKFRY)
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Rating:64Neutral
Price Target:
$28.00
▲(8.70% Upside)
Action:Reiterated
Date:04/22/26
The score is driven mainly by solid financial resilience (especially the strengthening balance sheet) and a generally supportive technical backdrop, offset by pressured cash conversion/recent cash flow weakness and a demanding valuation. Earnings-call takeaways were mixed: reaffirmed guidance and cost-savings progress are positives, but FX pressure and separation-related cash absorption and one-offs weigh on the near-term outlook.
Positive Factors
De-risked balance sheet
A materially de‑risked balance sheet with declining leverage and a large equity base gives durable financial flexibility. It supports capital allocation (dividends, capex, M&A), absorbs cyclical shocks and funds separation execution without immediate refinancing stress, improving resilience.
Negative Factors
Weak cash conversion & NWC build
Recent negative operating cash flow and a large working‑capital build tied to the separation materially weaken cash conversion. Persistently volatile FCF (FCF covers <50% of net income) constrains reinvestment, dividends and reduces buffer against cyclical demand downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
De-risked balance sheet
A materially de‑risked balance sheet with declining leverage and a large equity base gives durable financial flexibility. It supports capital allocation (dividends, capex, M&A), absorbs cyclical shocks and funds separation execution without immediate refinancing stress, improving resilience.
Read all positive factors
SKF AB (SKFRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.19B
Dividend Yield2.98%
Average Volume (3M)440.00
Price to Earnings (P/E)15.9
Beta (1Y)1.17
Revenue Growth3.04%
EPS Growth-33.02%
CountryUS
Employees38,426
SectorIndustrials
Sector Strength72
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)8.19
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 Cap10.28
Enterprise Value/Revenue1.29
Enterprise Value/Gross Profit4.85
Enterprise Value/Ebitda9.72
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.8
Revenue Forecast (FY)$9.82B
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:Apr 21, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 17, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: clear operational strengths (solid adjusted margin, strong performance in Specialized Industrial Solutions, high-margin Bearing Solutions, and accelerated rightsizing savings) and measured progress on the automotive separation and commercial wins. These positives are offset by material near-term headwinds — a large negative FX impact that reduced reported sales and margins, negative operating cash flow driven by a substantial working capital build for separation-related safety stock, and one-off separation and impairment costs. Management reaffirmed guidance and provided plans to normalize working capital and scale rightsizing savings, but near-term cash absorption and currency risk temper the outlook.Positive Updates
Strong adjusted operating margin despite headwinds
Adjusted operating margin of 13.5% in Q1, flat year-over-year, achieved despite a significant currency headwind. Key drivers were price/mix, rightsizing actions, higher production volumes (safety stock) and fixed cost absorption.
Negative Updates
Net sales decline driven by currency
Group net sales down 8.7% in Q1, primarily explained by an adverse currency effect of -9.9%. FX reduced the group's adjusted operating margin by ~2.1 percentage points and contributed to lower reported operating profit (operating profit SEK 2.6 billion, ~SEK 240 million lower year-over-year).
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Q1-2026 Updates
Positive
Negative
Strong adjusted operating margin despite headwinds
Adjusted operating margin of 13.5% in Q1, flat year-over-year, achieved despite a significant currency headwind. Key drivers were price/mix, rightsizing actions, higher production volumes (safety stock) and fixed cost absorption.
Read all positive updates
Company Guidance
Management reiterated that Q2 demand is expected to be broadly similar to Q1 with organic growth “relatively unchanged,” and provided an FX headwind estimate for Q2 of about SEK ‑100m (based on end‑March rates). For the full year they reaffirmed underlying tax guidance at ~28% (ex‑divestments), group capex of ~SEK 5.0bn, and one‑off automotive separation/footprint costs of SEK 2.5–3.0bn (Elgin capital gain excluded). They reported SEK 300m of rightsizing savings in Q1 and expect the savings run‑rate to move from SEK 1.2bn (Q1) toward SEK 2.0bn by end‑Q4 2027, with rightsizing expected to be slightly net‑positive versus separation dis‑synergies in 2026; net working capital buildup related to the separation should normalize by year‑end (long‑term NWC target ~27–29%). The company remains committed to completing the automotive separation in Q4 2026.SKF AB Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
84
Very Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 89.49B | 91.58B | 98.72B | 103.88B | 96.93B | 81.73B |
| Gross Profit | 23.71B | 24.52B | 27.37B | 26.34B | 24.47B | 23.27B |
| EBITDA | 11.84B | 14.16B | 14.61B | 14.78B | 11.54B | 13.82B |
| Net Income | 3.74B | 3.93B | 6.47B | 6.39B | 4.47B | 7.33B |
Balance Sheet | ||||||
| Total Assets | 111.36B | 106.42B | 119.41B | 111.90B | 110.92B | 99.63B |
| Cash, Cash Equivalents and Short-Term Investments | 9.00B | 9.15B | 11.09B | 13.32B | 11.22B | 13.66B |
| Total Debt | 15.42B | 15.34B | 20.04B | 21.69B | 21.27B | 19.21B |
| Total Liabilities | 52.19B | 50.75B | 57.44B | 56.95B | 56.88B | 54.26B |
| Stockholders Equity | 56.94B | 53.56B | 59.65B | 52.74B | 51.93B | 43.65B |
Cash Flow | ||||||
| Free Cash Flow | 3.29B | 4.10B | 5.11B | 8.02B | 428.00M | 1.36B |
| Operating Cash Flow | 6.98B | 7.69B | 10.79B | 13.78B | 5.64B | 5.25B |
| Investing Cash Flow | -895.00M | -1.50B | -5.60B | -5.87B | -5.35B | -3.15B |
| Financing Cash Flow | -8.11B | -8.29B | -7.57B | -4.51B | -3.40B | -3.51B |
SKF AB Technical Analysis
Positive
25.76
Price Trends
24.54
Positive
25.79
Negative
25.49
Negative
Market Momentum
-0.07
Positive
50.62
Neutral
34.02
Neutral
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 25.76 is above the 20-day moving average (MA) of 25.04, above the 50-day MA of 24.54, and above the 200-day MA of 25.49, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 50.62 is Neutral, neither overbought nor oversold. The STOCH value of 34.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $18.83B | 19.20 | 17.48% | 2.52% | 2.99% | 1.23% | |
74 Outperform | $17.43B | 45.76 | 8.90% | ― | 14.34% | 18.07% | |
72 Outperform | $7.83B | 17.82 | 9.77% | 1.61% | 3.31% | -5.18% | |
70 Outperform | $14.29B | 25.03 | 37.29% | 1.22% | 7.72% | 19.51% | |
64 Neutral | $11.19B | 15.93 | 6.91% | 2.98% | 3.04% | -33.02% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $11.73B | 43.69 | 4.12% | 4.42% | -0.06% | 3.45% |
* Industrials Sector Average
SKFRY
SKF AB
25.09
3.37
15.49%
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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.