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SKF AB Class A (SE:SKF.A)
:SKF.A
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SKF AB Class A
(SKF.A)
68Neutral
SKF AB Class A (SKF.A) vs. S&P 500 (SPY)
Market Cap
kr86.26B
Dividend Yield4.05%
Average Volume (3M)15.40K
Price to Earnings (P/E)13.7
Beta (1Y)1.33
Revenue Growth-3.96%
EPS Growth2.77%
CountrySE
Employees38,426
SectorIndustrials
Sector Strength80
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)4.71
Shares Outstanding28,959,000
10 Day Avg. Volume5,668
30 Day Avg. Volume15,400
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
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 Class A 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 products, including bearings, seals, and lubrication systems, to customers in the automotive and industrial sectors. The company also provides related services such as condition monitoring and maintenance solutions, which help clients optimize machinery performance and reduce downtime. SKF's revenue model is bolstered by its extensive global network of manufacturing facilities, distribution centers, and partners, allowing it to efficiently meet the needs of its international customer base. Additionally, the company's focus on innovation and technology enables it to offer advanced solutions that command premium pricing, further contributing to its earnings.
SKF AB Class A Financial Statement Overview
Summary
SKF AB Class A demonstrates solid financial health with consistent profitability and growth, a strong balance sheet, and stable cash flow generation. Despite challenges in revenue growth in the latest period, the company maintains efficient operations and financial management.Income Statement
SKF AB Class A has shown strong revenue growth, especially from 2020 to 2021, with stable gross and net profit margins. The EBIT and EBITDA margins are solid, reflecting efficient cost management despite revenue fluctuations in the recent year.―
Balance Sheet
The company's balance sheet is robust with a favorable debt-to-equity ratio and strong equity position, indicating financial stability. Return on equity has remained positive, showcasing effective use of equity capital.75
Cash Flow
The company exhibits good free cash flow generation, although there was a decline in recent years. Operating cash flow to net income ratio is strong, indicating efficient cash generation from operations relative to net income.―
| 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 | 26.49B | 24.47B | 23.27B | 16.99B | EBIT |
| 10.34B | 11.08B | 8.53B | 10.76B | 7.07B | EBITDA |
| 14.61B | 14.34B | 11.51B | 13.76B | 10.08B | Net Income Common Stockholders |
| 6.47B | 6.39B | 4.47B | 7.33B | 4.30B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 11.03B | 13.65B | 11.22B | 13.66B | 14.64B | Total Assets |
| 119.41B | 111.90B | 110.92B | 99.63B | 90.56B | Total Debt |
| 20.04B | 21.69B | 21.27B | 19.21B | 17.82B | Net Debt |
| 9.01B | 8.38B | 11.01B | 5.99B | 3.77B | 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 | |||
| 5.70B | 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 Class A Technical Analysis
Neutral
193.50
Price Trends
200.68
Negative
204.96
Negative
197.80
Negative
Market Momentum
-1.00
Negative
53.75
Neutral
76.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SKF.A, the sentiment is Neutral. The current price of 193.5 is above the 20-day moving average (MA) of 181.58, below the 50-day MA of 200.68, and below the 200-day MA of 197.80, indicating a neutral trend. The MACD of -1.00 indicates Negative momentum. The RSI at 53.75 is Neutral, neither overbought nor oversold. The STOCH value of 76.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:SKF.A.
SKF AB Class A Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Performance Comparison
SE:SKF.A
SKF AB Class A
193.50
-37.34
-16.18%
GB:0NNF
Alfa Laval AB
400.33
-67.23
-14.38%
GB:0GWL
Saab AB
460.95
231.22
100.65%
GB:0HC0
Sandvik AB
205.00
-21.35
-9.43%
GB:0NWX
SKF AB
194.95
-33.70
-14.74%
SE:EPI.A
Epiroc AB
214.90
4.18
1.98%
SKF AB Class A Earnings Call Summary
Earnings Call Date:Apr 25, 2025
(Q1-2025)
| % Change Since: 4.88%|
Next Earnings Date:Jul 18, 2025
Earnings Call Sentiment Negative
SKF's solid operating margin and positive growth in China are overshadowed by ongoing challenges such as negative organic growth, weak cash flow, and difficulties in the automotive sector. The company's strategic initiatives and innovations provide some optimism, but the negative trends dominate the current environment.Q1-2025 Updates
Positive Updates
Resilient Operating Margin
SKF achieved an operating margin of 13.5% in Q1 2025, slightly ahead of the same quarter last year, driven by pricing capabilities, portfolio management, and effective cost management.
Positive Growth in China and Northeast Asia
After seven consecutive quarters of negative organic growth, SKF reported a positive organic growth of 2% in China and Northeast Asia, primarily due to strong demand in the automotive sector, especially in the EV space.
Innovation in Industrial Verticals
SKF introduced new products in various sectors, such as railway, mining, and industrial electrical motors, with significant performance improvements and sustainability benefits, demonstrating SKF's commitment to innovation.
Negative Updates
Negative Organic Growth
SKF reported negative organic growth of 3.5% for the seventh consecutive quarter, with weak demand across regions, particularly in EMEA and the Americas.
Weak Cash Flow
The operating cash flow was weak at SEK1 billion, down from SEK1.8 billion in the previous year, primarily due to increased net working capital and negative FX effects.
Challenges in Automotive Segment
The automotive segment reported a negative growth of 3% and a margin of 5.2%, impacted by low demand for commercial vehicles and challenges in achieving the 8% operating margin target.
Company Guidance
During the call discussing SKF's Q1 2025 performance, several key metrics and insights were shared. SKF reported net sales just shy of SEK24 billion, representing a negative organic growth of 3.5%, which was mitigated by a strong price mix. The operating margin demonstrated resilience at 13.5%, slightly ahead of the previous year, driven by pricing capabilities, portfolio management, cost control, and favorable currency impacts. Cash flow was weak due to increased net working capital and FX headwinds. By region, EMEA experienced a 7% negative organic growth, while China and Northeast Asia showed a positive turnaround with 2% growth. The Americas and India/Southeast Asia faced negative growth, impacted by timing effects from Q4. The ongoing tariff situation prompted SKF to implement mitigating measures, including establishing a tariff command center and adjusting pricing. SKF's industrial business, representing 70% of net sales, reported a 3.6% negative organic growth but maintained a strong margin of 16.9%. Meanwhile, the automotive sector faced challenges with a 3% negative growth and a 5.2% margin, impacted by weak demand in commercial vehicles but bolstered by strong EV growth in China. SKF remains focused on strategic initiatives, including the separation into two fit-for-purpose businesses and innovation in several industrial verticals. Despite a complex geopolitical environment, SKF anticipates a continued negative volume development in Q2, yet remains optimistic about its future growth prospects.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.