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SKF AB Class B (SKFRY)
:SKFRY
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SKF AB
(OTC:SKFRY)
Rating:79Outperform
Price Target:
$25.00
▲(9.41%Upside)
SKF AB (SKFRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.42B
Dividend Yield3.37%
Average Volume (3M)529.00
Price to Earnings (P/E)17.4
Beta (1Y)1.03
Revenue Growth-4.32%
EPS Growth2.18%
CountryUS
Employees38,426
SectorIndustrials
Sector Strength86
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)0.49
Shares Outstanding426,392,060
10 Day Avg. Volume1,587
30 Day Avg. Volume529
Financial Highlights & Ratios
PEG Ratio-0.41
Price to Book (P/B)1.39
Price to Sales (P/S)0.00
P/FCF Ratio168.95
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
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 the sale of its diverse range of bearings and related products. The company's primary revenue streams include the manufacturing and distribution of bearings, seals, and lubrication systems. SKF also provides value-added services such as condition monitoring, maintenance services, and technical support, which contribute to its earnings. Strategic partnerships and collaborations with major industrial players and OEMs enhance its market presence and drive sales. Additionally, SKF invests in research and development to innovate and maintain a competitive edge in the evolving industrial landscape.
SKF AB Earnings Call Summary
Earnings Call Date:Apr 25, 2025
(Q1-2025)
| % Change Since: 19.76%|
Next Earnings Date:Jul 18, 2025
Earnings Call Sentiment Neutral
SKF demonstrated resilience in a challenging market with strong operating margins and innovation initiatives. China and Northeast Asia showed positive growth, but ongoing challenges in multiple regions and a weak cash flow performance offset these gains. Continued efforts in addressing tariff and automotive market challenges are critical.Q1-2025 Updates
Positive Updates
Resilient Operating Margin
Despite negative organic growth for seven consecutive quarters, SKF reported an operating margin of 13.5%, slightly ahead of the same quarter last year, driven by strong pricing capabilities and effective cost management.
Positive Organic Growth in China and Northeast Asia
After seven quarters of negative growth, China and Northeast Asia achieved a positive organic growth of 2%, driven by strong demand in the automotive sector, particularly in the EV space.
Successful Mitigation of Tariff Impacts
SKF established a tariff command center and introduced price changes and tariff surcharges, effectively managing to navigate the volatile environment without significant financial impact in Q1.
Innovation and Sustainability Initiatives
SKF launched new innovative products in the railway, mining, and industrial electrical motors sectors, enhancing customer value and supporting sustainability goals.
Strong Demand in Aerospace and Rail Sectors
The Americas region continued to see strong demand in aerospace, while rail was a bright spot in India and Southeast Asia.
Negative Updates
Negative Organic Growth in Multiple Regions
EMEA reported a negative organic growth of 7%, with weak demand in major geographies like Germany, Italy, and Turkey. Americas and India also saw negative growth, reversing previous positive trends.
Weak Cash Flow Performance
Operating cash flow was weak at SEK 1 billion, down from SEK 1.8 billion the previous year, due to increased working capital and negative FX effects.
Challenges in Automotive Market
The automotive sector faced a challenging market with a negative growth of 3% and a margin of 5.2%, below the same quarter last year. Achieving the 8% operating margin target is expected to extend beyond 2025.
Separation and Restructuring Risks
The ongoing separation into two businesses is a massive task with potential risks for timeline delays due to the complexity of activities, particularly in IT infrastructure.
Company Guidance
During the first quarter of 2025, SKF reported net sales of nearly SEK24 billion, experiencing a negative organic growth of 3.5%, which was partially mitigated by a strong price mix. The operating margin showed resilience at 13.5%, slightly surpassing the same period last year, driven by effective pricing strategies, portfolio management, and favorable currency effects. However, the quarter faced challenges with weak cash flow due to increased net working capital and FX headwinds. Regionally, EMEA experienced a negative organic growth of 7%, while China and Northeast Asia saw a positive growth of 2%. In contrast, Americas and India reported negative growth, influenced by previous timing effects. The industrial segment, comprising 70% of net sales, showed a strong margin of 16.9%, whereas the automotive segment faced a margin of 5.2% amid challenging market conditions. SKF is actively working on mitigating tariff impacts through strategic price changes and operational adjustments to navigate the volatile geopolitical environment.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 97.99B | 98.72B | 103.88B | 96.93B | 81.73B | 74.85B |
| Gross Profit | 27.41B | 27.37B | 26.34B | 24.47B | 23.27B | 16.99B |
| EBITDA | 15.57B | 14.61B | 14.78B | 12.28B | 13.82B | 10.23B |
| Net Income | 6.38B | 6.47B | 6.39B | 4.47B | 7.33B | 4.30B |
Balance Sheet | ||||||
| Total Assets | 113.19B | 119.41B | 111.90B | 110.92B | 99.63B | 90.56B |
| Cash, Cash Equivalents and Short-Term Investments | 11.14B | 11.03B | 13.32B | 11.22B | 13.66B | 14.64B |
| Total Debt | 0.00 | 20.04B | 21.69B | 21.27B | 19.21B | 17.82B |
| Total Liabilities | 54.03B | 57.44B | 56.95B | 56.88B | 54.26B | 54.84B |
| Stockholders Equity | 56.90B | 59.65B | 52.74B | 51.93B | 43.65B | 34.31B |
Cash Flow | ||||||
| Free Cash Flow | 4.39B | 5.11B | 8.02B | 428.00M | 1.36B | 4.89B |
| Operating Cash Flow | 9.99B | 10.79B | 13.78B | 5.64B | 5.25B | 8.27B |
| Investing Cash Flow | -5.22B | -5.60B | -5.87B | -5.35B | -3.15B | -3.01B |
| Financing Cash Flow | -7.55B | -7.57B | -4.51B | -3.40B | -3.51B | 2.69B |
SKF AB Technical Analysis
Positive
22.85
Price Trends
21.30
Positive
20.80
Positive
19.79
Positive
Market Momentum
0.40
Negative
62.57
Neutral
80.91
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 22.85 is above the 20-day moving average (MA) of 22.26, above the 50-day MA of 21.30, and above the 200-day MA of 19.79, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 62.57 is Neutral, neither overbought nor oversold. The STOCH value of 80.91 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 (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $10.42B | 17.35 | 10.85% | 3.37% | -4.32% | 2.18% | |
77 Outperform | $12.06B | 49.88 | 8.51% | ― | 4.87% | 19.66% | |
76 Outperform | $11.94B | 26.39 | 34.83% | 1.40% | -2.29% | -14.49% | |
74 Outperform | $5.37B | 16.56 | 11.85% | 1.82% | -3.69% | -11.76% | |
72 Outperform | $16.82B | 16.83 | 19.15% | 2.67% | -0.88% | 0.04% | |
72 Outperform | $11.07B | 30.39 | 4.03% | 4.58% | -3.04% | ― | |
68 Neutral | $2.54B | 13.45 | 7.40% | 4.63% | -0.87% | 8.24% |
* Industrials Sector Average
Performance Comparison
SKFRY
SKF AB
22.85
3.19
16.23%
LECO
Lincoln Electric Holdings
216.28
32.84
17.90%
RBC
RBC Bearings
388.59
110.57
39.77%
SNA
Snap-on
321.63
70.73
28.19%
SWK
Stanley Black & Decker
71.10
-7.01
-8.97%
TKR
Timken Company
76.67
-1.41
-1.81%
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.