company background image
SKF

AB SKFOM:SKF B Stock Report

Market Cap

kr91.1b

7D

-8.7%

1Y

3.2%

Updated

26 Oct, 2021

Data

Company Financials +
SKF B fundamental analysis
Snowflake Score
Valuation5/6
Future Growth2/6
Past Performance5/6
Financial Health5/6
Dividends4/6

SKF B Overview

AB SKF (publ) provides bearings, seals, condition monitoring, and lubrication systems and services.

AB SKF Competitors

Indutrade

OM:INDT

kr90.3b

Honeywell International

NasdaqGS:HON

US$149.8b

General Electric

NYSE:GE

US$115.6b

ABB

SWX:ABBN

CHF59.9b

Price History & Performance

Summary of all time highs, changes and price drops for AB SKF
Historical stock prices
Current Share Pricekr199.85
52 Week Highkr181.25
52 Week Lowkr259.00
Beta1.26
1 Month Change-5.60%
3 Month Change-12.54%
1 Year Change3.20%
3 Year Change39.41%
5 Year Change31.65%
Change since IPO741.47%

Recent News & Updates

Oct 15
Are Investors Undervaluing AB SKF (publ) (STO:SKF B) By 23%?

Are Investors Undervaluing AB SKF (publ) (STO:SKF B) By 23%?

How far off is AB SKF (publ) ( STO:SKF B ) from its intrinsic value? Using the most recent financial data, we'll take a...

Sep 21
Does AB SKF (STO:SKF B) Have A Healthy Balance Sheet?

Does AB SKF (STO:SKF B) Have A Healthy Balance Sheet?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Jul 20
Returns On Capital At AB SKF (STO:SKF B) Have Hit The Brakes

Returns On Capital At AB SKF (STO:SKF B) Have Hit The Brakes

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Shareholder Returns

SKF BSE MachinerySE Market
7D-8.7%1.2%1.8%
1Y3.2%35.8%37.7%

Return vs Industry: SKF B underperformed the Swedish Machinery industry which returned 33.6% over the past year.

Return vs Market: SKF B underperformed the Swedish Market which returned 34.1% over the past year.

Price Volatility

Is SKF B's price volatile compared to industry and market?
SKF B volatility
SKF B Beta1.26
Industry Beta1.03
Market Beta1

Stable Share Price: SKF B is less volatile than 75% of Swedish stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: SKF B's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
190741,433Gusta Gustafsonhttps://www.skf.com

AB SKF (publ) provides bearings, seals, condition monitoring, and lubrication systems and services. It operates in two segments, Industrial and Automotive. The company offers products in various categories, such as rolling bearings, mounted bearings and housings, super-precision bearings, slewing bearings, plain bearings, magnetic bearings and systems, industrial seals, automotive seals, lubrication management, maintenance products, condition monitoring systems, power transmission solutions, test and measuring equipment, and vehicle aftermarket products.

AB SKF Fundamentals Summary

How do AB SKF's earnings and revenue compare to its market cap?
SKF B fundamental statistics
Market Capkr91.05b
Earnings (TTM)kr6.58b
Revenue (TTM)kr78.77b

13.8x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SKF B income statement (TTM)
Revenuekr78.77b
Cost of Revenuekr58.94b
Gross Profitkr19.83b
Expenseskr13.25b
Earningskr6.58b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 26, 2021

Earnings per share (EPS)14.45
Gross Margin25.18%
Net Profit Margin8.35%
Debt/Equity Ratio41.6%

How did SKF B perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

45%

Payout Ratio

Valuation

Is AB SKF undervalued compared to its fair value and its price relative to the market?

28.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SKF B (SEK216.9) is trading below our estimate of fair value (SEK279.94)

Significantly Below Fair Value: SKF B is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SKF B is good value based on its PE Ratio (15x) compared to the Swedish Machinery industry average (27x).

PE vs Market: SKF B is good value based on its PE Ratio (15x) compared to the Swedish market (23.5x).


Price to Earnings Growth Ratio

PEG Ratio: SKF B is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: SKF B is good value based on its PB Ratio (2.6x) compared to the SE Machinery industry average (3.6x).


Future Growth

How is AB SKF forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

7.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SKF B's forecast earnings growth (7.7% per year) is above the savings rate (0.3%).

Earnings vs Market: SKF B's earnings (7.7% per year) are forecast to grow faster than the Swedish market (5.5% per year).

High Growth Earnings: SKF B's earnings are forecast to grow, but not significantly.

Revenue vs Market: SKF B's revenue (3.5% per year) is forecast to grow slower than the Swedish market (4.8% per year).

High Growth Revenue: SKF B's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SKF B's Return on Equity is forecast to be low in 3 years time (18.3%).


Past Performance

How has AB SKF performed over the past 5 years?

4.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SKF B has high quality earnings.

Growing Profit Margin: SKF B's current net profit margins (8.4%) are higher than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: SKF B's earnings have grown by 4.9% per year over the past 5 years.

Accelerating Growth: SKF B's earnings growth over the past year (67.8%) exceeds its 5-year average (4.9% per year).

Earnings vs Industry: SKF B earnings growth over the past year (67.8%) exceeded the Machinery industry 34.4%.


Return on Equity

High ROE: SKF B's Return on Equity (17.3%) is considered low.


Financial Health

How is AB SKF's financial position?


Financial Position Analysis

Short Term Liabilities: SKF B's short term assets (SEK50.5B) exceed its short term liabilities (SEK21.7B).

Long Term Liabilities: SKF B's short term assets (SEK50.5B) exceed its long term liabilities (SEK33.7B).


Debt to Equity History and Analysis

Debt Level: SKF B's debt to equity ratio (41.6%) is considered high.

Reducing Debt: SKF B's debt to equity ratio has reduced from 97.4% to 41.6% over the past 5 years.

Debt Coverage: SKF B's debt is well covered by operating cash flow (44.8%).

Interest Coverage: SKF B's interest payments on its debt are well covered by EBIT (9401x coverage).


Balance Sheet


Dividend

What is AB SKF current dividend yield, its reliability and sustainability?

3.25%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SKF B's dividend (3%) is higher than the bottom 25% of dividend payers in the Swedish market (0.91%).

High Dividend: SKF B's dividend (3%) is low compared to the top 25% of dividend payers in the Swedish market (3.55%).


Stability and Growth of Payments

Stable Dividend: SKF B's dividend payments have been volatile in the past 10 years.

Growing Dividend: SKF B's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45%), SKF B's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SKF B's dividends in 3 years are forecast to be well covered by earnings (46.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure


CEO

Gusta Gustafson (57 yo)

0.33

Tenure

Mr. Rickard Gustafson, also known as Gusta, serves as President, Chief Executive Officer of AB SKF (publ) since June 01, 2021 and serves as its Director since 2021. He served as Chief Executive Officer and...


Leadership Team

Experienced Management: SKF B's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: SKF B's board of directors are considered experienced (3.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

AB SKF (publ)'s employee growth, exchange listings and data sources


Key Information

  • Name: AB SKF (publ)
  • Ticker: SKF B
  • Exchange: OM
  • Founded: 1907
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: kr91.052b
  • Shares outstanding: 455.35m
  • Website: https://www.skf.com

Number of Employees


Location

  • AB SKF (publ)
  • Sven Wingquists Gata 2
  • Gothenburg
  • Västra Götaland County
  • 415 50
  • Sweden

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 21:11
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.