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SKF AB
(OTC:SKFRY)
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Rating:65Neutral
Price Target:
$30.00
â–²(4.38% Upside)
Action:Reiterated
Date:10/21/26
Overall score reflects stable but not accelerating fundamentals (cooler margins and weaker cash conversion despite an improving balance sheet), a generally positive earnings-call outlook with execution benefits from rightsizing, neutral technical momentum, and a valuation that appears demanding for the current cash-flow profile.
Positive Factors
Organic growth and margin expansion
Growth across continuing operations, combined with higher adjusted margins, indicates effective commercial execution and improving mix. If sustained, this strengthens earnings capacity and supports reinvestment in the company’s industrial solutions, technology, and customer relationships over the next several quarters.
Negative Factors
Cooling profitability and cash conversion
Profitability has declined from earlier peak levels, while free cash flow converts less than half of reported net income. This weakens shareholder flexibility and may constrain internal funding for growth, dividends, or strategic initiatives if the lower-quality conversion persists.
Read all positive and negative factors
Positive Factors
Negative Factors
Organic growth and margin expansion
Growth across continuing operations, combined with higher adjusted margins, indicates effective commercial execution and improving mix. If sustained, this strengthens earnings capacity and supports reinvestment in the company’s industrial solutions, technology, and customer relationships over the next several quarters.
Read all positive factors
SKF AB (SKFRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.56B
Dividend Yield3.29%
Average Volume (3M)18.16K
Price to Earnings (P/E)25.8
Beta (1Y)1.13
Revenue Growth-3.04%
EPS Growth8.30%
CountryUS
Employees37,271
SectorIndustrials
Sector Strength72
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)9.83
Shares Outstanding426,433,000
10 Day Avg. Volume13,890
30 Day Avg. Volume18,164
Financial Highlights & Ratios
PEG Ratio-0.72
Price to Book (P/B)2.08
Price to Sales (P/S)1.21
P/FCF Ratio23.22
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue0.15
Enterprise Value/Gross Profit0.54
Enterprise Value/Ebitda1.05
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.74
Revenue Forecast (FY)$9.31B
SKF AB Business Overview & Revenue Model
Company Description
AB SKF (publ) is a global enterprise dedicated to the innovation, production, and distribution of bearings, seals, and lubrication systems, alongside providing related expert services. The company's operations are structured into two main division...
How the Company Makes Money
SKF makes money primarily by selling physical products and related services to industrial and automotive customers. Its core revenue stream comes from the sale of bearings (the company’s main product category) used in applications such as electric...
SKF AB Earnings Call Summary
Earnings Call Date:Oct 21, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 04, 2027
Earnings Call Sentiment Positive
The call was predominantly positive. Continuing operations delivered 4.3% organic growth, a 16.3% adjusted operating margin, improved operating cash flow, strong performance in Specialized Industrial Solutions, robust growth in the Americas and India and Southeast Asia, and faster-than-planned rightsizing savings. These positives were partly offset by weak and volatile Automotive demand, higher input costs, increased working capital, separation-related costs, regional softness in Europe and flattish growth in China and Northeast Asia, plus seasonally lower expected Q4 margins for Specialized Industrial Solutions.Positive Updates
Strong Continuing-Operations Organic Growth
SKF's continuing operations delivered 4.3% organic growth in Q3 2026, driven by high demand in selective OEM markets including defense, drives, and infrastructure, as well as strong growth in Specialized Industrial Solutions.
Negative Updates
Automotive Demand Decline
The discontinued Automotive business faced volatile and weak demand, with negative growth of 4%, primarily due to weak development in Europe. Management said overall demand remained challenging, although commercial vehicles and aftermarket performed strongly in the Americas and China and Northeast Asia.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Continuing-Operations Organic Growth
SKF's continuing operations delivered 4.3% organic growth in Q3 2026, driven by high demand in selective OEM markets including defense, drives, and infrastructure, as well as strong growth in Specialized Industrial Solutions.
Read all positive updates
Company Guidance
For continuing operations, SKF expects sales to strengthen somewhat in quarter four year-over-year, with roughly the same activity levels and somewhat improved growth in the fourth quarter, while market volatility and continued uncertainty remain; quarter-four currency guidance is SEK +150 million, and cost inflation is not expected to materially change in Q4 versus Q3. For the full year, the tax rate is estimated at 27%, additions to property, plant, and equipment are expected to end at SEK 2.5 billion, a further decrease of SEK 0.5 billion, and items affecting comparability remain at SEK -2.5 billion-SEK 3 billion. The rightsizing program is expected to reach the SEK 2 billion annual run rate by mid-2027, about half year prior to the original plan; Automotive separation costs increase by approximately SEK 0.5 billion, from SEK 2.5 billion to some SEK 3 billion, offset by a corresponding reduction in industrial footprint optimization. Working capital targets are around 29% of sales midterm and 27% of sales long-term, while Specialized Industrial Solutions is intended to reach roughly the same profitability margin as Bearing Solutions in mid-term.SKF AB Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
74
Positive
Cash Flow
56
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 | 24.95B | 22.67B | 27.37B | 26.34B | 24.47B | 23.27B |
| EBITDA | 12.91B | 14.31B | 14.61B | 14.78B | 11.66B | 13.82B |
| Net Income | 4.49B | 3.93B | 6.47B | 6.39B | 4.47B | 7.33B |
Balance Sheet | ||||||
| Total Assets | 118.61B | 106.42B | 119.69B | 111.87B | 110.92B | 99.79B |
| Cash, Cash Equivalents and Short-Term Investments | 12.96B | 9.15B | 11.03B | 13.32B | 11.22B | 13.66B |
| Total Debt | 0.00 | 15.34B | 20.76B | 21.33B | 21.27B | 19.34B |
| Total Liabilities | 58.73B | 50.75B | 57.44B | 56.95B | 56.88B | 54.26B |
| Stockholders Equity | 57.55B | 53.56B | 59.65B | 52.74B | 51.93B | 43.65B |
Cash Flow | ||||||
| Free Cash Flow | 2.74B | 4.79B | 5.11B | 8.02B | 428.00M | 1.36B |
| Operating Cash Flow | 6.21B | 8.39B | 10.79B | 13.78B | 5.64B | 5.25B |
| Investing Cash Flow | -2.69B | -1.50B | -5.60B | -5.87B | -5.35B | -3.15B |
| Financing Cash Flow | -1.74B | -12.67B | -7.57B | -4.51B | -3.40B | -3.51B |
SKF AB Technical Analysis
Positive
28.74
Price Trends
27.33
Negative
26.69
Positive
26.10
Positive
Market Momentum
0.02
Negative
51.24
Neutral
84.70
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 28.74 is above the 20-day moving average (MA) of 26.94, above the 50-day MA of 27.33, and above the 200-day MA of 26.10, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 51.24 is Neutral, neither overbought nor oversold. The STOCH value of 84.70 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $15.68B | 49.61 | 9.66% | 3.96% | 17.31% | 27.05% | |
72 Outperform | $7.85B | 30.99 | 8.13% | 1.24% | 5.45% | -16.03% | |
70 Outperform | $18.95B | 18.52 | 17.41% | 2.65% | 4.02% | 4.39% | |
68 Neutral | $14.34B | 26.05 | 37.21% | 1.20% | 9.14% | 12.52% | |
65 Neutral | $12.56B | 25.76 | 8.81% | 3.29% | -3.04% | 8.30% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $2.38B | 6.93 | 24.79% | 2.57% | 19.82% | 272.31% |
* Industrials Sector Average
SKFRY
SKF AB
27.24
1.95
7.71%
KMT
Kennametal
31.11
8.91
40.12%
LECO
Lincoln Electric Holdings
263.13
23.91
9.99%
RBC
RBC Bearings
504.49
97.19
23.86%
SNA
Snap-on
368.91
31.39
9.30%
TKR
Timken Company
114.97
38.30
49.96%
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.