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SKF AB Class A
(SKF.A)
Select Model
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Rating:59Neutral
Price Target:
kr289.00
▲(12.45% Upside)
Action:Reiterated
Date:07/18/26
Overall score reflects moderated financial performance (margin pressure and weaker free cash flow consistency) as the biggest constraint, with valuation also a clear headwind due to a high P/E and low yield. These are partially balanced by a solid balance sheet and a generally positive earnings call highlighting improving adjusted profitability, rightsizing progress, and separation execution, while technicals remain mixed with neutral momentum.
Positive Factors
Manageable leverage
Low and improving leverage gives SKF financial flexibility to fund operations, invest in strategic priorities, and withstand softer industrial demand. A stronger equity base also reduces balance-sheet pressure, although current returns show that the capital structure is not yet being used as profitably as in prior years.
Negative Factors
Margin compression
Profitability has cooled materially from earlier years, reducing current earnings power and leaving less margin for execution setbacks. Sustained pressure on gross and net margins could constrain reinvestment and weaken returns unless pricing, productivity, and business-mix improvements offset the decline.
Read all positive and negative factors
Positive Factors
Negative Factors
Manageable leverage
Low and improving leverage gives SKF financial flexibility to fund operations, invest in strategic priorities, and withstand softer industrial demand. A stronger equity base also reduces balance-sheet pressure, although current returns show that the capital structure is not yet being used as profitably as in prior years.
Read all positive factors
SKF AB Class A (SKF.A) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr125.52B
Dividend Yield1.45%
Average Volume (3M)11.32K
Price to Earnings (P/E)28.0
Beta (1Y)1.36
Revenue Growth-6.31%
EPS Growth-16.09%
CountrySE
Employees37,271
SectorGeneral
Sector StrengthN/A
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)9.89
Shares Outstanding28,918,068
10 Day Avg. Volume7,442
30 Day Avg. Volume11,323
Financial Highlights & Ratios
PEG Ratio-0.73
Price to Book (P/B)2.10
Price to Sales (P/S)1.23
P/FCF Ratio24.68
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
EPS Forecast (FY)17.15
Revenue Forecast (FY)kr90.56B
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 c...
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 speci...
SKF AB Class A Earnings Call Summary
Earnings Call Date:Jul 17, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 21, 2026
Earnings Call Sentiment Positive
The call described a quarter with solid operational progress and improving profitability metrics (group adjusted operating margin up to 13.9%, SIS strong growth and margin expansion, rightsizing savings realized), strategic milestones (automotive separation on track and a new humanoid venture) and strong liquidity. Offsetting these positives were demand softness in Europe, a continued decline in automotive sales (-1.4%), one-off restructuring/IAC charges (SEK 1.0bn in Q2 and SEK -2.5 to -3.0bn guidance for the year), working capital build-up (SEK -1.1bn) and temporary productivity drag from support production. On balance, the company demonstrated meaningful operational and strategic momentum while managing near-term separation and restructuring costs.Positive Updates
Group Organic Growth
Reported organic growth of 1.4% in Q2 2026, with positive momentum driven by Asia and Specialized Industrial Solutions.
Negative Updates
European Demand Weakness
EMEA showed flattish to negative organic growth; automotive in Europe experienced negative growth for both light vehicles and commercial vehicles, and distribution showed caution tied in part to Middle East uncertainty.
Read all updates
Q2-2026 Updates
Positive
Negative
Group Organic Growth
Reported organic growth of 1.4% in Q2 2026, with positive momentum driven by Asia and Specialized Industrial Solutions.
Read all positive updates
Company Guidance
Guidance highlights: SKF expects organic sales to "strengthen somewhat" in Q3 year‑over‑year and estimates a currency effect of roughly SEK +100 on operating profit for Q3 (using end‑June rates); for the full year it now guides a tax rate (excluding divestments and the automotive separation) of ~29% (up from ~28% previously), has reduced planned additions to property, plant & equipment by SEK 1.0bn to SEK 4.0bn (from SEK 5.0bn), reiterates one‑off IAC costs of SEK 2.5–3.0bn, expects net positive impact from rightsizing savings versus separation‑related negative synergies for the year, and maintains mid‑term CapEx guidance around 5% of sales before normalizing toward ~3.5% of sales.SKF AB Class A Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
50
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 89.52B | 91.58B | 98.72B | 103.88B | 96.93B | 81.73B |
| Gross Profit | 25.04B | 24.52B | 27.37B | 26.17B | 24.47B | 23.27B |
| EBITDA | 12.31B | 12.38B | 14.61B | 14.34B | 11.51B | 13.76B |
| Net Income | 4.50B | 3.93B | 6.47B | 6.39B | 4.47B | 7.33B |
Balance Sheet | ||||||
| Total Assets | 118.61B | 106.42B | 119.41B | 111.90B | 110.92B | 99.62B |
| Cash, Cash Equivalents and Short-Term Investments | 12.96B | 9.15B | 11.09B | 13.65B | 11.22B | 13.66B |
| Total Debt | 20.57B | 15.15B | 20.04B | 21.69B | 21.27B | 19.23B |
| Total Liabilities | 58.73B | 50.75B | 57.44B | 56.95B | 56.88B | 54.28B |
| Stockholders Equity | 57.55B | 53.56B | 59.65B | 52.74B | 51.93B | 43.65B |
Cash Flow | ||||||
| Free Cash Flow | 2.73B | 4.56B | 5.70B | 8.02B | 428.00M | 1.36B |
| Operating Cash Flow | 6.21B | 8.39B | 10.79B | 13.78B | 5.64B | 5.25B |
| Investing Cash Flow | -2.42B | -1.50B | -5.60B | -5.87B | -5.35B | -3.15B |
| Financing Cash Flow | -1.93B | -8.29B | -7.57B | -4.51B | -3.40B | -3.51B |
SKF AB Class A Technical Analysis
Positive
257.00
Price Trends
267.65
Positive
257.78
Positive
247.36
Positive
Market Momentum
0.97
Positive
56.00
Neutral
50.85
Neutral
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 257 is below the 20-day moving average (MA) of 270.70, below the 50-day MA of 267.65, and above the 200-day MA of 247.36, indicating a bullish trend. The MACD of 0.97 indicates Positive momentum. The RSI at 56.00 is Neutral, neither overbought nor oversold. The STOCH value of 50.85 is Neutral, 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | kr231.88B | 28.29 | 18.42% | 1.60% | 3.87% | 2.11% | |
73 Outperform | kr98.13B | 26.58 | 10.20% | 1.79% | 0.11% | 7.71% | |
71 Outperform | kr33.53B | 18.37 | 12.72% | 4.31% | -5.26% | -10.87% | |
71 Outperform | kr94.21B | 35.14 | 15.37% | 1.20% | 2.02% | -0.48% | |
59 Neutral | kr125.52B | 27.96 | ― | 1.45% | -6.31% | -16.09% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
SE:SKF.A
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SKF AB Class A Corporate Events
SKF Wins Shareholder Support to Spin Off Automotive Unit SKF Vertevo Ahead of Nasdaq Listing
Oct 1, 2026
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 Stockhol...
SKF updates share composition and total voting rights after conversion
Sep 30, 2026
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, comp...
SKF Sets 2027 AGM Date and Names Nomination Committee
Sep 10, 2026
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, to...
AB SKF Calls Extraordinary General Meeting With Detailed Voting Procedures
Sep 7, 2026
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 meetin...
SKF Sets October Vote on Spin-Off and Nasdaq Listing of Subsidiary SKF Vertevo
Sep 7, 2026
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,...
SKF updates share and voting structure after A-to-B conversion
Aug 31, 2026
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 outsta...
SKF lifts margins as automotive separation reshapes group profile
Jul 17, 2026
SKF reported modest organic sales growth of 1.4% in the second quarter of 2026, with net sales essentially flat at SEK 23.2 billion but a higher adjusted operating margin of 13.9%. Margin gains were driven by strong performance in Specialized Indu...
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.