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SKF AB
(OTC:SKFRY)
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Rating:62Neutral
Price Target:
$31.00
▲(7.86% Upside)
Action:Reiterated
Date:07/18/26
The score is driven primarily by steady but cooling financial performance (lower margins and weaker cash conversion despite improving leverage). The latest earnings call adds support due to improving profitability, cost-savings execution, and strategic progress (Automotive separation), while valuation is a clear headwind (P/E ~30 with a modest yield). Technicals are neutral-to-mixed, suggesting limited near-term trend conviction.
Positive Factors
SIS growth and margin expansion
Specialized Industrial Solutions is gaining momentum through aftermarket demand, Aerospace, Magnetics and automated lubrication. Growth and higher margins in these offerings can improve SKF’s mix and provide a more durable earnings contribution.
Negative Factors
Cooling margins and weak cash conversion
Profitability remains positive but is below prior-year levels, while cash generation is not keeping pace with reported earnings. Persistent cost, mix or productivity pressure could limit reinvestment capacity and shareholder flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
SIS growth and margin expansion
Specialized Industrial Solutions is gaining momentum through aftermarket demand, Aerospace, Magnetics and automated lubrication. Growth and higher margins in these offerings can improve SKF’s mix and provide a more durable earnings contribution.
Read all positive factors
SKF AB (SKFRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.74B
Dividend Yield1.61%
Average Volume (3M)4.32K
Price to Earnings (P/E)26.7
Beta (1Y)1.18
Revenue Growth3.90%
EPS Growth-5.27%
CountryUS
Employees37,271
SectorIndustrials
Sector Strength72
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)9.83
Shares Outstanding426,432,740
10 Day Avg. Volume2,598
30 Day Avg. Volume4,324
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.79
Revenue Forecast (FY)$9.53B
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 primarily makes money by selling bearings and bearing units across many industries, typically through a mix of direct sales to original equipment manufacturers (OEMs) and distribution/channel partners that serve maintenance, repair, and operat...
SKF AB 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 presented a largely constructive operational and financial performance: improved margins, strong outperformance in the Specialized Industrial Solutions segment, realized rightsizing savings, solid liquidity and progress on strategic priorities (automotive separation and humanoids venture). Offsetting challenges include modest group organic growth, Automotive volume weakness, one‑off separation and restructuring costs, support production inefficiencies that increased working capital, tariff refund cash timing effects, and some currency and inflationary headwinds. On balance the positive operational momentum, margin improvements and strategic progress outweigh the near‑term headwinds and one‑off items.Positive Updates
Positive Organic Growth
Group organic growth of 1.4% in Q2 2026, driven by strong growth in Asia and the Specialized Industrial Solutions (SIS) segment.
Negative Updates
Automotive Revenue Decline and Regional Softness
Automotive organic sales declined -1.4% in Q2 with EMEA showing notably weak demand in both light vehicles and commercial vehicles; overall automotive remains a drag on group growth.
Read all updates
Q2-2026 Updates
Positive
Negative
Positive Organic Growth
Group organic growth of 1.4% in Q2 2026, driven by strong growth in Asia and the Specialized Industrial Solutions (SIS) segment.
Read all positive updates
Company Guidance
Management guided that organic sales should “strengthen somewhat” in Q3 (while noting geopolitical uncertainty), and flagged a Q3 currency benefit to operating profit of about SEK +100 using end‑June rates; for the full year they now expect a tax rate of ~29% (vs 28%), have reduced planned additions to property, plant & equipment by SEK 1.0bn to SEK 4.0bn, and reaffirm one‑off IAC charges of SEK 2.5–3.0bn. They reiterated the SEK 2.0bn rightsizing target (realized benefits of ~SEK 300m in Q1 and SEK 350m in Q2) and said net savings will more than offset separation‑related negative synergies for the year, and confirmed the Automotive separation/listing is planned to complete in Q4.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 | 12.89B | 14.16B | 14.61B | 14.78B | 11.54B | 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
27.11
Positive
26.33
Positive
26.12
Positive
Market Momentum
0.38
Positive
54.61
Neutral
29.38
Neutral
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 27.96, above the 50-day MA of 27.11, and above the 200-day MA of 26.12, indicating a bullish trend. The MACD of 0.38 indicates Positive momentum. The RSI at 54.61 is Neutral, neither overbought nor oversold. The STOCH value of 29.38 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $14.64B | 26.99 | 37.21% | 1.24% | 9.14% | 12.52% | |
73 Outperform | $19.72B | 19.11 | 17.41% | 2.34% | 4.02% | 4.39% | |
72 Outperform | $8.25B | 32.41 | 8.13% | 1.00% | 5.45% | -16.03% | |
68 Neutral | $14.27B | 23.75 | 6.90% | 3.64% | 0.57% | 29.85% | |
66 Neutral | $15.47B | 48.27 | 9.66% | ― | 17.31% | 27.05% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $12.74B | 26.74 | 8.12% | 1.69% | 3.90% | -5.27% |
* Industrials Sector Average
SKFRY
SKF AB
28.23
3.42
13.79%
LECO
Lincoln Electric Holdings
273.83
32.93
13.67%
RBC
RBC Bearings
490.78
99.68
25.49%
SNA
Snap-on
384.19
64.09
20.02%
SWK
Stanley Black & Decker
96.50
24.21
33.49%
TKR
Timken Company
121.09
44.71
58.54%
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.