Education
About Us
Working with TipRanks
Follow Us
SKF AB Class B (SKFRY)
OTHER OTC:SKFRY
Top Page
SKF AB
(OTC:SKFRY)
72Outperform
SKF AB (SKFRY) vs. S&P 500 (SPY)
Market Cap
$10.36B
Dividend Yield2.13%
Average Volume (3M)12.94K
Price to Earnings (P/E)17.3
Beta (1Y)0.99
Revenue Growth-4.62%
EPS Growth1.53%
CountryUS
Employees42,641
SectorIndustrials
Sector Strength72
IndustryIndustrial Goods
Share Statistics
EPS (TTM)1.35
Shares Outstanding426,392,060
10 Day Avg. Volume11,880
30 Day Avg. Volume12,941
Financial Highlights & Ratios
PEG Ratio11.31
Price to Book (P/B)N/A
Price to Sales (P/S)0.93
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
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
SKF AB Business Overview & Revenue Model
Company DescriptionSKF AB (SKFRY) is a leading global supplier in the fields of bearings, seals, lubrication systems, mechatronics, and services that include technical support, maintenance, and reliability services. Founded in 1907 and headquartered in Gothenburg, Sweden, the company operates primarily in the industrial and automotive sectors, providing essential components and solutions that enhance the performance and reliability of rotating equipment.
How the Company Makes MoneySKF AB generates revenue through the sale of a diverse range of products and services. The company's primary revenue streams include the sale of bearings, which are critical components used in various industries such as automotive, aerospace, and energy. SKF also earns income from its seals and lubrication systems, which are used to improve the efficiency and lifespan of machinery. Additionally, the company offers mechatronics solutions and a wide array of services like maintenance and reliability consulting, which assist clients in optimizing their equipment's performance. SKF's earnings are further bolstered by strategic partnerships and collaborations with leading companies across different sectors, helping to expand its market presence and drive innovation in its offerings.
SKF AB Financial Statement Overview
Summary
SKF AB demonstrates robust financial health with significant strengths in balance sheet stability and consistent income statement performance. While cash flow generation is strong, recent declines in free cash flow warrant attention. The company's risk profile is low due to the absence of debt, positioning it well for future opportunities.Income Statement
SKF AB's revenue has shown a steady growth trajectory with a recent slight decline from 2023 to 2024. Gross and EBIT margins have improved over the years, reflecting efficiency and cost control. The net profit margin has remained stable, indicating consistent profitability. However, the recent minor revenue drop might signal a need for strategic adjustments.78
Positive
Balance Sheet
The company exhibits strong financial stability with no total debt in 2024, improving its debt-to-equity ratio significantly. Equity growth has been consistent, contributing positively to the equity ratio. Return on Equity is solid, highlighting effective use of shareholder funds. The zero-debt position reduces financial risk significantly.85
Very Positive
Cash Flow
Operating cash flow has shown fluctuations, but overall, it supports net income well. Free cash flow has decreased in recent periods, suggesting potential reinvestment or cash management challenges. Despite this, operating cash flows remain healthy, indicating good cash generation from core operations.72
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 87.73B | 98.72B | 103.88B | 96.93B | 81.73B | 74.85B | Gross Profit |
| 23.61B | 27.37B | 26.34B | 24.47B | 23.27B | 16.99B | EBIT |
| 9.71B | 10.34B | 11.08B | 8.53B | 10.76B | 7.07B | EBITDA |
| 12.46B | 14.77B | 14.78B | 12.28B | 13.82B | 10.23B | Net Income Common Stockholders |
| 5.94B | 6.47B | 6.39B | 4.47B | 7.33B | 4.30B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 11.36B | 11.36B | 13.32B | 11.22B | 13.66B | 14.64B | Total Assets |
| 119.41B | 119.41B | 111.90B | 110.92B | 99.63B | 90.56B | Total Debt |
| 0.00 | 0.00 | 21.69B | 21.27B | 19.21B | 17.82B | Net Debt |
| 0.00 | 0.00 | 8.38B | 11.01B | 5.99B | 3.77B | Total Liabilities |
| 57.44B | 57.44B | 56.95B | 56.88B | 54.26B | 54.84B | Stockholders Equity |
| 59.65B | 59.65B | 52.74B | 51.93B | 43.65B | 34.31B |
| Cash Flow | Free Cash Flow | ||||
| -28.00M | 5.11B | 8.02B | 428.00M | 1.36B | 4.89B | Operating Cash Flow |
| 4.77B | 10.79B | 13.78B | 5.64B | 5.25B | 8.27B | Investing Cash Flow |
| -4.09B | -5.60B | -5.87B | -5.35B | -3.15B | -3.01B | Financing Cash Flow |
| -4.87B | -7.57B | -4.51B | -3.40B | -3.51B | 2.69B |
SKF AB Technical Analysis
Positive
22.74
Price Trends
20.53
Positive
19.84
Positive
19.62
Positive
Market Momentum
0.72
Negative
58.12
Neutral
80.83
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 22.74 is above the 20-day moving average (MA) of 21.96, above the 50-day MA of 20.53, and above the 200-day MA of 19.62, indicating a bullish trend. The MACD of 0.72 indicates Negative momentum. The RSI at 58.12 is Neutral, neither overbought nor oversold. The STOCH value of 80.83 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
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $74.79B | 22.85 | 110.24% | 2.17% | -1.30% | 20.26% | |
77 Outperform | $24.81B | 9.14 | 24.30% | 1.16% | -2.99% | 159.26% | |
72 Outperform | $41.37B | 31.04 | 14.97% | 0.62% | 5.22% | 4.46% | |
72 Outperform | $10.36B | 17.31 | 11.53% | 2.13% | -4.62% | 1.53% | |
69 Neutral | $29.98B | 33.65 | 26.22% | 1.89% | -11.28% | -23.69% | |
67 Neutral | $78.70B | 25.10 | 25.87% | 1.07% | 0.41% | 19.76% | |
62 Neutral | $8.16B | 12.85 | 0.64% | 3.04% | 3.83% | -15.83% |
* Industrials Sector Average
Performance Comparison
SKFRY
SKF AB
22.74
0.52
2.34%
AME
Ametek
178.86
-1.81
-1.00%
DOV
Dover
180.77
5.45
3.11%
ITW
Illinois Tool Works
254.82
-1.93
-0.75%
PH
Parker Hannifin
611.19
77.23
14.46%
ROK
Rockwell Automation
265.15
-14.01
-5.02%
SKF AB Earnings Call Summary
Earnings Call Date: Jan 31, 2025 | % Change Since: 9.80% | Next Earnings Date: Apr 25, 2025
Earnings Call Sentiment Neutral
SKF demonstrated resilience in maintaining margins and strong cash flow despite facing multiple challenges including negative organic growth, particularly in the automotive segment and in China. Regionalization efforts and growth in select markets like Americas were positive, but overall, the challenges balanced out the achievements.Highlights
Resilient Operating Margin
Despite facing a challenging market with a negative organic growth of minus 3% in Q4 and minus 5% for the full year, SKF maintained its operating margin close to the previous year's levels, demonstrating strong margin resilience.
Strong Cash Generation
SKF reported robust cash flow of SEK3.3 billion in Q4 and almost SEK11 billion for the full year, showcasing effective cash management despite a challenging environment.
Increased Dividend Proposal
SKF proposed a slight increase in dividends from SEK750 to SEK775, reflecting confidence in their financial foundation and future growth prospects.
Regionalization Progress
Significant advancements were made in regionalization efforts, with Americas reaching 70% and Asia 68%, up by 3 and 5 percentage points respectively.
Positive Growth in Americas and Southeast Asia
Americas returned to growth with strong net sales, and high activity levels were noted in India, Indonesia, and Vietnam.
Lowlights
Six Consecutive Quarters of Negative Organic Growth
SKF reported a sixth consecutive quarter of negative organic growth, with a 3% decline in Q4.
Significant Challenges in Automotive Segment
The automotive segment faced a significant negative organic growth of 4% and a weak adjusted operating margin of 2.6% in the fourth quarter.
Negative Growth in China and Northeast Asia
China and Northeast Asia experienced significant negative organic growth, impacted by low activity in the wind industry and destocking in industrial distribution.
FX Headwinds Impacting Margins
Foreign exchange headwinds had a negative impact of 0.9 percentage points on the operating margin in Q4.
Company Guidance
During SKF's earnings call for the fourth quarter of 2024, the company provided guidance for the first quarter of 2025, expecting a somewhat weakened year-over-year organic sales outlook. Despite reporting a sixth consecutive quarter of negative organic growth at -3%, SKF maintained a robust margin resilience, with an adjusted operating margin slightly above 11%. The full year saw net sales close to SEK 100 billion and a strong cash generation of nearly SEK 11 billion. The regionalization efforts were highlighted, with Americas and Asia achieving regionalization rates of 70% and 68%, respectively. SKF also announced an increase in the proposed dividend from SEK 750 to SEK 775. The call emphasized the ongoing separation of the Industrial and Automotive businesses, with a Capital Markets Day scheduled for November 11, 2025, to provide further details.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.