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SKF AB Class B (SKFRY)
OTHER OTC:SKFRY
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SKF AB
(OTC:SKFRY)
Rating:79Outperform
Price Target:
$28.00
▲(7.98% Upside)
SKF AB (SKFRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.42B
Dividend Yield3.14%
Average Volume (3M)1.51K
Price to Earnings (P/E)22.4
Beta (1Y)1.04
Revenue Growth-2.49%
EPS Growth-4.87%
CountryUS
Employees38,426
SectorIndustrials
Sector Strength78
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)0.12
Shares Outstanding426,392,060
10 Day Avg. Volume3,118
30 Day Avg. Volume1,506
Financial Highlights & Ratios
PEG Ratio11.41
Price to Book (P/B)1.59
Price to Sales (P/S)0.96
P/FCF Ratio18.53
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue0.12
Enterprise Value/Gross Profit0.44
Enterprise Value/Ebitda0.84
Forecast
1Y Price Target
$28.00Price Target Upside7.98% 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 through multiple streams, primarily by selling a wide range of bearing products, including rolling bearings, plain bearings, and related components. The company also earns income from its service offerings, which include maintenance services, condition monitoring, and consultancy for optimizing operational performance. Key revenue streams are bolstered by partnerships with major manufacturers in the automotive and aerospace industries, as well as a strong focus on research and development, allowing SKF to introduce innovative products that meet evolving market demands. Additionally, SKF's global distribution network enables it to reach diverse markets, further enhancing its revenue potential.
SKF AB Earnings Call Summary
Earnings Call Date:Jul 18, 2025
(Q2-2025)
| % Change Since: 11.77%|
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call showed a resilient performance with strong operating margins and positive growth in the industrial segment. However, challenges remain, particularly in the automotive sector, with flat overall organic sales and significant staff reductions. The company is navigating FX and tariff pressures, but uncertainties around the automotive separation process persist.Q2-2025 Updates
Positive Updates
Strong Operating Margin Despite Market Challenges
Adjusted operating margin improved to 13.3% from the same quarter last year, despite tough market conditions and significant FX headwinds.
Positive Organic Growth in Industrial Segment
The industrial business reported a positive organic growth of 2.4%, driven by growth in Asia and timing-related factors in Europe.
Strong Net Cash Flow
Net cash flow was strong at SEK 2.8 billion, up from SEK 2.2 billion in the same quarter last year.
Aerospace Business Growth
The aerospace segment experienced a CAGR of 12% from 2022 to 2025, with an 8 percentage point improvement in adjusted operating margin.
Negative Updates
Flat Organic Sales
Organic sales were flat, with a decline in automotive sales of 6.2%, primarily driven by low demand in Europe and the Americas.
Significant Staff Reductions
A rightsizing program will result in a net reduction of 1,200 staff positions, generating savings of SEK 2 billion by 2027.
FX Headwinds and Tariff Challenges
FX impacted operating margin by -0.9 percentage points, and tariffs continue to present challenges, though largely offset by pricing strategies.
Automotive Separation Uncertainties
The automotive separation process faces critical milestones and potential delays, with ongoing costs impacting the financial results.
Company Guidance
In the Q2 2025 earnings call, the company provided detailed guidance on its financial performance and strategic initiatives. Net sales were over SEK 23 billion, reflecting an organic sales decline of 0.2%, though in absolute terms, sales declined by almost 10% due to significant FX headwinds. Despite challenging market conditions, the adjusted operating margin slightly improved to 13.3%, with strong contributions from pricing, portfolio management, and cost efficiency. The company reported a robust net cash flow of SEK 2.8 billion, a notable increase from SEK 2.2 billion the previous year. Regionally, the industrial business saw organic growth across all areas, with particularly strong growth in China and Northeast Asia at 4.3%, and India and Southeast Asia at 5%. Conversely, the automotive sector faced a 6.2% decline, primarily in Europe and the Americas. Looking forward, the company anticipates relatively unchanged organic sales in Q3 and plans to continue offsetting tariff impacts through pricing strategies. The rightsizing program announced earlier is expected to generate SEK 2 billion in savings by 2027, with a restructuring charge of SEK 2 billion taken this quarter.SKF AB Financial Statement Overview
Summary
SKF AB exhibits strong financial health with a solid balance sheet and consistent income statement performance. The absence of debt and solid equity growth significantly reduce financial risk. However, fluctuations in operating cash flow and a recent decline in free cash flow suggest potential areas for improvement.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 | 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 | 26.34B | 24.47B | 23.27B | 16.99B |
| EBITDA | 13.62B | 14.61B | 14.78B | 12.28B | 13.82B | 10.23B |
| 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 | 13.32B | 11.22B | 13.66B | 14.64B |
| Total Debt | 0.00 | 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 | 5.11B | 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
Positive
25.93
Price Trends
23.51
Positive
21.79
Positive
20.76
Positive
Market Momentum
0.49
Negative
68.13
Neutral
88.38
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 25.93 is above the 20-day moving average (MA) of 24.30, above the 50-day MA of 23.51, and above the 200-day MA of 20.76, indicating a bullish trend. The MACD of 0.49 indicates Negative momentum. The RSI at 68.13 is Neutral, neither overbought nor oversold. The STOCH value of 88.38 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $11.42B | 22.41 | 9.46% | 3.14% | -2.49% | -4.87% | |
78 Outperform | $12.56B | 49.40 | 8.56% | ― | 5.48% | 16.88% | |
78 Outperform | $16.94B | 17.31 | 18.18% | 2.65% | -0.76% | -2.62% | |
78 Outperform | $13.29B | 27.08 | 37.35% | 1.24% | 0.24% | 0.05% | |
75 Outperform | $5.35B | 17.49 | 10.52% | 1.82% | -2.01% | -9.95% | |
69 Neutral | $11.80B | 24.17 | 5.38% | 4.23% | -2.71% | ― | |
63 Neutral | $10.76B | 16.24 | 7.41% | 2.07% | 2.60% | -16.34% |
* Industrials Sector Average
Performance Comparison
SKFRY
SKF AB
25.93
7.59
41.38%
LECO
Lincoln Electric Holdings
245.25
50.26
25.78%
RBC
RBC Bearings
401.56
106.66
36.17%
SNA
Snap-on
333.03
56.34
20.36%
SWK
Stanley Black & Decker
77.53
-18.94
-19.63%
TKR
Timken Company
75.32
-7.85
-9.44%
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.