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SKF AB Class A (SKF.A) AI Stock Analysis
SKF AB Class A
(Nasdaq OMX AB:SKF.A)
The score is driven primarily by stable but slowing fundamentals (revenue decline and weaker cash conversion despite moderate profitability and a healthy balance sheet). The earnings call adds support due to improved continuing-operations performance and cost-savings progress, but technicals remain cautious in the near term and valuation looks only fair with a relatively elevated P/E for a softer growth phase.
SKF AB Class A (SKF.A) vs. iShares MSCI Sweden ETF (EWD)
- Market Cap
- SEK 125.22B
- Dividend Yield
- 3.01%
- Average Volume (3M)
- 9,128
- Price to Earnings (P/E)
- 26.2
- Beta (1Y)
- 1.33
- Revenue Growth
- -10.43%
- EPS Growth
- -1.68%
- Country
- Sweden
- Employees
- 37,271
- Sector
- General
- Sector Strength
- 55
- Industry
- Manufacturing - Tools & Accessories
SKF AB Class A Business Overview & Revenue Model
Company Description
AB SKF (publ) specializes globally in the conception, evolution, and production of bearings, seals, lubrication systems, and related services. Its operations are structured around two principal divisions: Industrial and Automotive. The company's comp...
How the Company Makes Money
SKF makes money primarily by selling engineered products and aftermarket solutions used in rotating equipment across industrial and automotive/transportation applications. A core revenue stream is the sale of bearings (including standard and speciali...
SKF AB Class A Earnings Call Summary
The call conveyed a positive overall performance for SKF's continuing industrial operations, with 4.3% organic growth, a 16.3% adjusted operating margin, stronger cash flow, robust growth in Specialized Industrial Solutions and several regions, and rightsizing savings ahead of schedule. The company also reported progress on the Automotive separation and continued investment in Magnetics. Offsetting concerns included volatile market conditions, weak Automotive demand, European and China-related softness, higher input costs, working-capital deterioration, separation-related charges, and seasonally lower expected Q4 margins for Specialized Industrial Solutions.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
For continuing operations, SKF expects sales to strengthen somewhat in quarter four year-over-year, with roughly the same activity levels, a somewhat improved growth in the fourth quarter, and continued uncertainty from market volatility; quarter-four currency impact is estimated at SEK +150 million, based on the exchange rate at the end of September. Full-year guidance is a tax rate of 27%, additions to property, plant, and equipment of SEK 2.5 billion, and items affecting comparability for the full group, including Automotive, at SEK -2.5 billion-SEK 3 billion. The rightsizing program is expected to reach a SEK 2 billion annual run rate by mid-2027, about half year prior to the original plan, while Automotive separation costs increase by approximately SEK 0.5 billion, from SEK 2.5 billion to some SEK 3 billion; working-capital targets are around 29% at midterm and 27% long-term.
SKF AB Class A Financial Statement Overview
Summary
Financials look stable but mixed: profitability is still respectable (TTM operating margin ~10.2%, net margin ~5.8%) and leverage is moderate (debt-to-equity ~0.36), but recent revenue contraction (TTM -5.6%) and margin compression versus 2021 peaks weigh on the outlook. Cash flow is positive and FCF is up TTM, yet cash conversion is a key weakness (FCF ~44% of net income) with a relatively thin operating cash flow cushion versus debt.
Income Statement
62PositiveBalance Sheet
74PositiveCash Flow
58Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 84.50B | 91.58B | 98.72B | 103.88B | 96.93B | 81.73B |
| Gross Profit | 24.95B | 24.52B | 27.37B | 26.17B | 24.47B | 23.27B |
| EBITDA | 12.56B | 12.38B | 14.61B | 14.34B | 11.64B | 13.79B |
| Net Income | 4.78B | 3.93B | 6.47B | 6.39B | 4.47B | 7.33B |
Balance Sheet | ||||||
| Total Assets | 122.90B | 106.42B | 119.41B | 111.90B | 110.92B | 99.62B |
| Cash, Cash Equivalents and Short-Term Investments | 11.42B | 9.15B | 11.09B | 13.65B | 11.22B | 13.66B |
| Total Debt | 20.50B | 15.15B | 20.04B | 21.69B | 21.27B | 19.23B |
| Total Liabilities | 59.66B | 50.75B | 57.44B | 56.95B | 56.88B | 54.28B |
| Stockholders Equity | 60.80B | 53.56B | 59.65B | 52.74B | 51.93B | 43.65B |
Cash Flow | ||||||
| Free Cash Flow | 3.62B | 4.56B | 5.70B | 8.02B | 428.00M | 1.36B |
| Operating Cash Flow | 6.43B | 8.39B | 10.79B | 13.78B | 5.64B | 5.25B |
| Investing Cash Flow | -2.24B | -1.50B | -5.60B | -5.87B | -5.35B | -3.15B |
| Financing Cash Flow | 1.60B | -8.29B | -7.57B | -4.51B | -3.40B | -3.51B |
SKF AB Class A Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SKF.A, the sentiment is Positive. The current price of 275.00 is above the 20-day moving average (MA) of 270.45, above the 50-day MA of 268.88, and above the 200-day MA of 247.10, indicating a bullish trend. The MACD of 2.40 indicates Negative momentum. The RSI at 54.45 is Neutral, neither overbought nor oversold. The STOCH value of 88.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:SKF.A.
SKF AB Class A Peers Comparison
Overall Rating
SE:TREL.B69Neutral
SE:HPOL.B68Neutral
SE:ALFA67Neutral
SE:INDT64Neutral- SE:SKF.A63Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| SE:TREL.B | 69Neutral | SEK 98.87B | 25.29 | 10.57% | 1.77% | 1.86% | 11.09% |
| SE:HPOL.B | 68Neutral | SEK 31.74B | 17.55 | 12.33% | 4.56% | -0.82% | -7.46% |
| SE:ALFA | 67Neutral | SEK 225.51B | 27.71 | 17.58% | 1.65% | 4.27% | -2.41% |
| SE:INDT | 64Neutral | SEK 96.84B | 34.43 | 15.59% | 1.17% | 5.59% | 5.36% |
| SE:SKF.A | 63Neutral | SEK 125.31B | 26.19 | ― | 3.01% | -10.43% | -1.68% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| SE:SKF.A | SKF AB Class A | 275.00 | 33.51 | 13.88% | |
| SE:ALFA | Alfa Laval AB | 545.60 | 106.83 | 24.35% | |
| SE:HPOL.B | Hexpol AB | 92.15 | 11.61 | 14.42% | |
| SE:INDT | Indutrade AB | 265.80 | 18.14 | 7.32% | |
| SE:TREL.B | Trelleborg AB | 451.20 | 65.73 | 17.05% | |
| SE:ALIV | Autoliv Inc Shs Swedish DR | 1145.00 | 53.07 | 4.86% |
SKF AB Class A Corporate Events
SKF lifts margins and accelerates savings as automotive split nears
SKF AB reported third-quarter 2026 net sales of SEK 17.47 billion, with organic growth of 4.3 percent and an improved adjusted operating margin of 16.3 percent. Performance was driven by higher demand in selected OEM markets and strong price and mix...
SKF Wins Shareholder Support to Spin Off Automotive Unit SKF Vertevo Ahead of Nasdaq Listing
Aktiebolaget SKF has secured shareholder approval at an Extraordinary General Meeting to distribute all shares in its wholly owned subsidiary SKF Vertevo AB to existing SKF shareholders, ahead of a planned listing of SKF Vertevo on Nasdaq Stockholm o...
SKF updates share composition and total voting rights after conversion
SKF AB has formally confirmed a change in its share and voting structure following a conversion of Series A shares to Series B, in line with its Articles of Association. As of 30 September 2026, the company has 455,351,068 shares outstanding, compris...
SKF Sets 2027 AGM Date and Names Nomination Committee
AB SKF has appointed its Nomination Committee for the 2027 Annual General Meeting, in line with its Nomination Committee Charter, naming representatives from key shareholders FAM, Cevian Capital, AFA Försäkring, SEB Funds and Skandia, toget...
AB SKF Calls Extraordinary General Meeting With Detailed Voting Procedures
AB SKF has called an Extraordinary General Meeting for 1 October 2026 at the Elite Park Avenue Hotel in Gothenburg, inviting shareholders to participate either in person, by proxy, or via postal voting, with doors opening an hour before the meeting....
SKF Sets October Vote on Spin-Off and Nasdaq Listing of Subsidiary SKF Vertevo
SKF AB has circulated an information brochure ahead of an Extraordinary General Meeting on 1 October 2026, where shareholders will vote on the board’s proposal to distribute all shares in its wholly owned subsidiary SKF Vertevo. If approved, sh...
SKF updates share and voting structure after A-to-B conversion
SKF AB has announced an updated share and vote structure following a conversion of shares from Series A to Series B, conducted in line with its Articles of Association. As of 31 August 2026, the company reports a total of 455,351,068 shares outstandi...
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.
Date of analysis: Oct 23, 2026