SKF AB (SKF.B) AI Stock Analysis

SKF AB

(Nasdaq OMX AB:SKF.B)

Select Model

Rating:60Neutral

Price Target:SEK 275.00▼(-0.07% Downside)

Action:reiterated

Date:10/23/26

The score is primarily driven by a mixed financial profile: manageable leverage and still-decent profitability are offset by contracting revenue, meaningful gross-margin compression, and weaker cash conversion/debt coverage. Technicals are broadly neutral with price below short-term moving averages, while valuation is a headwind due to a relatively high P/E despite a moderate dividend yield.

Positive Factors

Manageable LeverageA debt-to-equity ratio of about 0.36 indicates a relatively conservative capital structure and gives SKF greater resilience than a highly leveraged peer. Improved leverage supports financial flexibility, while sizable equity provides capacity to absorb cyclical weakness and continue investing.

Negative Factors

Revenue ContractionThe continuing revenue decline points to weaker demand across SKF’s industrial and automotive exposure rather than a single isolated reporting effect. Persistent top-line softness can reduce operating leverage, limit investment capacity, and make future margin recovery more difficult.

SKF AB (SKF.B) vs. iShares MSCI Sweden ETF (EWD)

Market Cap: SEK 125.31B
Dividend Yield: 2.91%
Average Volume (3M): 1.06M
Price to Earnings (P/E): 26.2
Beta (1Y): 1.36
Revenue Growth: -10.43%
EPS Growth: -1.68%
Country: Sweden
Employees: 29,108
Sector: General
Sector Strength: 55
Industry: Manufacturing - Tools & Accessories

SKF AB Business Overview & Revenue Model

Company Description

Established in 1907 and headquartered in Gothenburg, Sweden, AB SKF (publ) is a global enterprise specializing in the conception, advancement, and production of an extensive range of bearings, seals, and lubrication systems, alongside various related...

How the Company Makes Money

SKF makes money primarily by selling products and services tied to rotating equipment performance. A major revenue stream comes from manufacturing and distributing bearings (including standard and engineered bearings) and associated components used b...

SKF AB Financial Statement Overview

Summary

Mixed fundamentals: revenue is down (-5.6%) and gross margin has compressed versus prior peaks, but profitability remains decent (TTM EBIT margin ~10.2%, net margin ~5.8%) and leverage is manageable (debt-to-equity ~0.36). Cash flow is improving (FCF +32.6%) yet cash conversion is weaker (FCF ~44% of net income) and debt coverage via operating cash flow is modest (~21% of total debt).

Income Statement

62Positive

Balance Sheet

70Positive

Cash Flow

58Neutral

Financial statement breakdown
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 Technical Analysis

Technical Analysis SentimentPositive

Last Price275.20

Price Trends

50DMA268.65Positive

100DMA260.49Positive

200DMA246.92Positive

Market Momentum

MACD2.57Negative

RSI54.65Neutral

STOCH90.15Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SKF.B, the sentiment is Positive. The current price of 275.20 is above the 20-day moving average (MA) of 270.74, above the 50-day MA of 268.65, and above the 200-day MA of 246.92, indicating a bullish trend. The MACD of 2.57 indicates Negative momentum. The RSI at 54.65 is Neutral, neither overbought nor oversold. The STOCH value of 90.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:SKF.B.

SKF AB Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

SE:SKF.B against its peers
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.B	60Neutral	SEK 125.31B	26.19	8.36%	2.91%	-10.43%	-1.68%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

SE:SKF.B and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
SE:SKF.B	Skf Ab (UK)	275.20	34.18	14.18%
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%

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.

Date of analysis: Oct 23, 2026

SKF AB AI Stock Analysis