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AB SKF

OM:SKF B
Snowflake Description

Excellent balance sheet established dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SKF B
OM
SEK73B
Market Cap
  1. Home
  2. SE
  3. Capital Goods
Company description

AB SKF (publ) offers bearings, seals, condition monitoring, lubrication systems, and services. The last earnings update was 2 days ago. More info.


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SKF B Share Price and Events
7 Day Returns
2.9%
OM:SKF B
-1.5%
SE Machinery
-1.3%
SE Market
1 Year Returns
-4.4%
OM:SKF B
-4.5%
SE Machinery
3.3%
SE Market
SKF B Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
AB SKF (SKF B) 2.9% -2.2% -9.3% -4.4% 20.9% -2.9%
SE Machinery -1.5% -3.7% -8.2% -4.5% 33.5% 36.5%
SE Market -1.3% -0.7% -1.3% 3.3% 12.8% 18.2%
1 Year Return vs Industry and Market
  • SKF B matched the Machinery industry (-4.5%) over the past year.
  • SKF B underperformed the Market in Sweden which returned 3.3% over the past year.
Price Volatility
SKF B
Industry
5yr Volatility vs Market

Value

 Is AB SKF undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of AB SKF to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for AB SKF.

OM:SKF B Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 20 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.7%
Perpetual Growth Rate 10-Year SE Government Bond Rate 0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OM:SKF B
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year SE Govt Bond Rate 0.4%
Equity Risk Premium S&P Global 6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.08
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.081 (1 + (1- 22%) (28.34%))
1.215
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.21
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.43% + (1.215 * 5.96%)
7.67%

Discounted Cash Flow Calculation for OM:SKF B using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for AB SKF is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

OM:SKF B DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (SEK, Millions) Source Present Value
Discounted (@ 7.67%)
2020 5,910.97 Analyst x12 5,489.75
2021 5,525.17 Analyst x9 4,765.77
2022 5,271.24 Est @ -4.6% 4,222.74
2023 5,108.53 Est @ -3.09% 3,800.76
2024 5,004.80 Est @ -2.03% 3,458.24
2025 4,940.19 Est @ -1.29% 3,170.34
2026 4,901.98 Est @ -0.77% 2,921.65
2027 4,881.83 Est @ -0.41% 2,702.29
2028 4,874.14 Est @ -0.16% 2,505.77
2029 4,875.12 Est @ 0.02% 2,327.67
Present value of next 10 years cash flows SEK35,364.97
OM:SKF B DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= SEK4,875.12 × (1 + 0.43%) ÷ (7.67% – 0.43%)
SEK67,641.61
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= SEK67,641.61 ÷ (1 + 7.67%)10
SEK32,296.14
OM:SKF B Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= SEK35,364.97 + SEK32,296.14
SEK67,661.11
Equity Value per Share
(SEK)
= Total value / Shares Outstanding
= SEK67,661.11 / 455.35
SEK148.59
OM:SKF B Discount to Share Price
Calculation Result
Value per share (SEK) From above. SEK148.59
Current discount Discount to share price of SEK161.15
= -1 x (SEK161.15 - SEK148.59) / SEK148.59
-8.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of AB SKF is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for AB SKF's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are AB SKF's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OM:SKF B PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in SEK SEK16.00
OM:SKF B Share Price ** OM (2019-07-19) in SEK SEK161.15
Sweden Machinery Industry PE Ratio Median Figure of 16 Publicly-Listed Machinery Companies 15.02x
Sweden Market PE Ratio Median Figure of 325 Publicly-Listed Companies 16.12x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of AB SKF.

OM:SKF B PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= OM:SKF B Share Price ÷ EPS (both in SEK)

= 161.15 ÷ 16.00

10.07x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AB SKF is good value based on earnings compared to the SE Machinery industry average.
  • AB SKF is good value based on earnings compared to the Sweden market.
Price based on expected Growth
Does AB SKF's expected growth come at a high price?
Raw Data
OM:SKF B PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.07x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts
2.9%per year
Sweden Machinery Industry PEG Ratio Median Figure of 14 Publicly-Listed Machinery Companies 2.34x
Sweden Market PEG Ratio Median Figure of 233 Publicly-Listed Companies 1.29x

*Line of best fit is calculated by linear regression .

OM:SKF B PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.07x ÷ 2.9%

3.53x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AB SKF is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on AB SKF's assets?
Raw Data
OM:SKF B PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in SEK SEK78.46
OM:SKF B Share Price * OM (2019-07-19) in SEK SEK161.15
Sweden Machinery Industry PB Ratio Median Figure of 26 Publicly-Listed Machinery Companies 2.78x
Sweden Market PB Ratio Median Figure of 573 Publicly-Listed Companies 2.58x
OM:SKF B PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= OM:SKF B Share Price ÷ Book Value per Share (both in SEK)

= 161.15 ÷ 78.46

2.05x

* Primary Listing of AB SKF.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AB SKF is good value based on assets compared to the SE Machinery industry average.
X
Value checks
We assess AB SKF's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. AB SKF has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is AB SKF expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
2.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is AB SKF expected to grow at an attractive rate?
  • AB SKF's earnings growth is expected to exceed the low risk savings rate of 0.4%.
Growth vs Market Checks
  • AB SKF's earnings growth is positive but not above the Sweden market average.
  • AB SKF's revenue growth is positive but not above the Sweden market average.
Annual Growth Rates Comparison
Raw Data
OM:SKF B Future Growth Rates Data Sources
Data Point Source Value (per year)
OM:SKF B Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts 2.9%
OM:SKF B Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts 1.4%
Sweden Machinery Industry Earnings Growth Rate Market Cap Weighted Average 1.7%
Sweden Machinery Industry Revenue Growth Rate Market Cap Weighted Average 2%
Sweden Market Earnings Growth Rate Market Cap Weighted Average 7.9%
Sweden Market Revenue Growth Rate Market Cap Weighted Average 4.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OM:SKF B Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 weeks ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
All numbers in SEK Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OM:SKF B Future Estimates Data
Date (Data in SEK Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 90,621 9,163 2
2022-12-31 88,567 8,835 2
2021-12-31 89,197 8,505 6,417 17
2020-12-31 86,869 8,951 6,018 20
2019-12-31 86,241 8,013 5,952 18
OM:SKF B Past Financials Data
Date (Data in SEK Millions) Revenue Cash Flow Net Income *
2019-06-30 86,299 8,920 6,860
2019-03-31 86,431 8,998 7,284
2018-12-31 85,713 8,345 7,285
2018-09-30 84,002 8,067 7,055
2018-06-30 81,288 7,494 6,576
2018-03-31 78,897 6,610 5,786
2017-12-31 77,938 6,429 5,475
2017-09-30 77,189 6,174 4,486
2017-06-30 76,424 7,050 4,793
2017-03-31 74,514 6,856 4,302
2016-12-31 72,589 7,150 3,985
2016-09-30 72,072 7,659 3,470

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • AB SKF's earnings are expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).
  • AB SKF's revenue is expected to grow by 1.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OM:SKF B Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 weeks ago) See Below
Future Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below

All data from AB SKF Company Filings, last reported 2 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OM:SKF B Future Estimates Data
Date (Data in SEK Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 17.00 17.00 17.00 1.00
2022-12-31 16.30 16.30 16.30 1.00
2021-12-31 14.20 17.10 10.93 16.00
2020-12-31 13.30 15.50 10.68 19.00
2019-12-31 12.91 13.99 11.67 18.00
OM:SKF B Past Financials Data
Date (Data in SEK Millions) EPS *
2019-06-30
2019-03-31 16.00
2018-12-31 16.00
2018-09-30 15.49
2018-06-30 14.44
2018-03-31 12.71
2017-12-31 12.02
2017-09-30 9.85
2017-06-30 10.53
2017-03-31 9.45
2016-12-31 8.75
2016-09-30 7.62

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • AB SKF is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess AB SKF's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Sweden market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Sweden market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
AB SKF has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has AB SKF performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare AB SKF's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • AB SKF's year on year earnings growth rate has been positive over the past 5 years.
  • AB SKF's 1-year earnings growth is less than its 5-year average (4.3% vs 19.1%)
  • AB SKF's earnings growth has not exceeded the SE Machinery industry average in the past year (4.3% vs 28.6%).
Earnings and Revenue History
AB SKF's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from AB SKF Company Filings, last reported 2 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OM:SKF B Past Revenue, Cash Flow and Net Income Data
Date (Data in SEK Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 86,299.00 6,860.00 11,881.00
2019-03-31 86,431.00 7,284.00 11,607.00
2018-12-31 85,713.00 7,285.00 11,502.00
2018-09-30 84,002.00 7,055.00 11,333.00
2018-06-30 81,288.00 6,576.00 11,163.00
2018-03-31 78,897.00 5,786.00 11,110.00
2017-12-31 77,938.00 5,475.00 11,101.00
2017-09-30 77,189.00 4,486.00 11,191.00
2017-06-30 76,424.00 4,793.00 10,918.00
2017-03-31 74,514.00 4,302.00 10,725.00
2016-12-31 72,589.00 3,985.00 10,529.00
2016-09-30 72,072.00 3,470.00 10,510.00
2016-06-30 72,577.00 2,843.00 10,898.00
2016-03-31 74,219.00 3,851.00 11,225.00
2015-12-31 75,997.00 3,880.00 11,851.00
2015-09-30 76,281.00 4,342.00 11,754.00
2015-06-30 75,701.00 4,988.00 11,551.00
2015-03-31 73,695.00 4,482.00 11,177.00
2014-12-31 70,975.00 4,600.00 10,439.00
2014-09-30 68,906.00 1,683.00 10,055.00
2014-06-30 66,742.00 1,436.00 9,676.00
2014-03-31 65,179.00 1,357.00 9,389.00
2013-12-31 63,597.00 912.00 9,182.00
2013-09-30 62,151.00 3,960.00 9,088.00
2013-06-30 62,014.00 4,052.00 9,077.00
2013-03-31 62,796.00 4,176.00 9,213.00
2012-12-31 64,575.00 4,662.00 9,328.00
2012-09-30 65,848.00 4,866.00 9,284.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • AB SKF has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • AB SKF used its assets less efficiently than the SE Machinery industry average last year based on Return on Assets.
  • AB SKF has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess AB SKF's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
AB SKF has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is AB SKF's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up AB SKF's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • AB SKF is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • AB SKF's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of AB SKF's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from AB SKF Company Filings, last reported 2 weeks ago.

OM:SKF B Past Debt and Equity Data
Date (Data in SEK Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 35,660.00 20,802.00 10,675.00
2019-03-31 37,505.00 20,660.00 12,168.00
2018-12-31 35,452.00 17,157.00 11,656.00
2018-09-30 33,981.00 17,547.00 8,036.00
2018-06-30 33,246.00 17,339.00 6,260.00
2018-03-31 32,964.00 19,028.00 9,235.00
2017-12-31 29,823.00 18,508.00 8,619.00
2017-09-30 27,873.00 18,120.00 6,938.00
2017-06-30 27,373.00 18,800.00 7,024.00
2017-03-31 29,576.00 22,935.00 10,883.00
2016-12-31 27,683.00 23,650.00 11,086.00
2016-09-30 25,310.00 22,499.00 9,546.00
2016-06-30 23,716.00 23,123.00 9,511.00
2016-03-31 25,995.00 23,326.00 8,778.00
2015-12-31 26,282.00 23,825.00 8,500.00
2015-09-30 25,735.00 24,046.00 7,001.00
2015-06-30 26,037.00 23,593.00 5,061.00
2015-03-31 25,964.00 26,776.00 7,131.00
2014-12-31 24,404.00 26,105.00 7,441.00
2014-09-30 22,977.00 25,123.00 5,385.00
2014-06-30 21,360.00 24,580.00 7,859.00
2014-03-31 21,837.00 22,087.00 6,795.00
2013-12-31 21,152.00 21,344.00 6,201.00
2013-09-30 22,994.00 16,419.00 8,683.00
2013-06-30 22,305.00 16,766.00 7,499.00
2013-03-31 22,647.00 15,400.00 8,008.00
2012-12-31 22,468.00 15,675.00 9,057.00
2012-09-30 21,183.00 16,228.00 9,507.00
  • AB SKF's level of debt (58.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (115% vs 58.3% today).
  • Debt is well covered by operating cash flow (42.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 16.4x coverage).
X
Financial health checks
We assess AB SKF's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. AB SKF has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.72%
Current annual income from AB SKF dividends. Estimated to be 4.07% next year.
If you bought SEK2,000 of AB SKF shares you are expected to receive SEK74 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • AB SKF's pays a higher dividend yield than the bottom 25% of dividend payers in Sweden (1.89%).
  • AB SKF's dividend is below the markets top 25% of dividend payers in Sweden (4.38%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OM:SKF B Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 20 Analyst Estimates (S&P Global) See Below
Sweden Machinery Industry Average Dividend Yield Market Cap Weighted Average of 16 Stocks 2.9%
Sweden Market Average Dividend Yield Market Cap Weighted Average of 244 Stocks 3.6%
Sweden Minimum Threshold Dividend Yield 10th Percentile 1.2%
Sweden Bottom 25% Dividend Yield 25th Percentile 1.9%
Sweden Top 25% Dividend Yield 75th Percentile 4.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OM:SKF B Future Dividends Estimate Data
Date (Data in SEK) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 8.50 1.00
2022-12-31 8.20 1.00
2021-12-31 6.77 18.00
2020-12-31 6.51 21.00
2019-12-31 6.25 21.00
OM:SKF B Past Annualized Dividends Data
Date (Data in SEK) Dividend per share (annual) Avg. Yield (%)
2019-03-06 6.000 3.708
2019-01-29 6.000 3.869
2018-03-05 5.500 3.402
2018-02-01 5.500 3.181
2017-02-24 5.500 3.101
2016-02-02 5.500 3.684
2015-03-26 5.500 3.315
2014-03-28 5.500 3.274
2013-03-12 5.500 3.253
2012-10-17 5.500 3.476
2012-07-18 5.500 3.860
2012-04-25 5.500 3.892
2011-04-28 5.000 3.244
2010-04-29 3.500 2.187
2009-03-17 3.500 3.291

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of AB SKF's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).
X
Income/ dividend checks
We assess AB SKF's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can AB SKF afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. AB SKF has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of AB SKF's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Alrik Danielson
COMPENSATION SEK19,278,120
AGE 57
TENURE AS CEO 4.5 years
CEO Bio

Mr. Alrik Danielson, B.Sc. (Econ.) has been the Chief Executive Officer and President of SKF AB (now AB SKF (publ)) since January 1, 2015. He served as an Interim CFO of SKF AB from April 30, 2019 to June 17, 2019. Mr. Danielson was President of Industrial Market at AB SKF. He served as the President and Chief Executive Officer of Höganäs AB since May 11, 2005. Mr. Danielson served as Acting Managing Director of Höganäs Sweden AB. He served as Acting Vice President of Europe Region at Höganäs AB. He served as President of Industrial Division at SKF AB from September 1, 2003 to February 2005. He served as the Chief Executive Officer of SKF do Brazil and Vice President of AB SKF's Industrial Division. Mr. Danielson has been Director of Seco Tools AB since 2011. He serves as a Director of Hoganas India Ltd. He has been a Director of SKF AB since March 26, 2015. He serves as a Board member of Jernkontoret, EFG European Furniture Group AB and the Chamber of Commerce and Industry of Southern Sweden. He served as a Director at Höganäs AB since May 11, 2005.

CEO Compensation
  • Alrik's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Alrik's remuneration is about average for companies of similar size in Sweden.
Management Team Tenure

Average tenure and age of the AB SKF management team in years:

3.2
Average Tenure
55.5
Average Age
  • The tenure for the AB SKF management team is about average.
Management Team

Alrik Danielson

TITLE
President
COMPENSATION
SEK19M
AGE
57
TENURE
4.5 yrs

Niclas Rosenlew

TITLE
Senior VP & CFO
AGE
47
TENURE
0.1 yrs

Carina van den Berg

TITLE
Director of Group Controlling & Accounting

Victoria Van Camp

TITLE
CTO and President of Innovation & Business Development
AGE
53

Patrik Stenberg

TITLE
Head of Investor Relations

Carina Bergfelt

TITLE
General Counsel
AGE
59
TENURE
23.5 yrs

Theo Kjellberg

TITLE
Head of Media Relations & Director of Corporate Communication

Manfred Neubert

TITLE
President - SKF Gmbh
AGE
66

Kent Viitanen

TITLE
President of Bearing Operations
AGE
54
TENURE
1.8 yrs

Per Thorén

TITLE
Group Treasurer
Board of Directors Tenure

Average tenure and age of the AB SKF board of directors in years:

4
Average Tenure
61
Average Age
  • The tenure for the AB SKF board of directors is about average.
Board of Directors

Hans Stråberg

TITLE
Chairman
COMPENSATION
SEK2M
AGE
62
TENURE
1.3 yrs

Alrik Danielson

TITLE
President
COMPENSATION
SEK19M
AGE
57
TENURE
4.3 yrs

Lars Wedenborn

TITLE
Director
COMPENSATION
SEK1M
AGE
61
TENURE
11.3 yrs

Hock Goh

TITLE
Director
COMPENSATION
SEK710K
AGE
64
TENURE
5.3 yrs

Nancy Gougarty

TITLE
Director
COMPENSATION
SEK710K
AGE
64
TENURE
4.3 yrs

Jonny Hilbert

TITLE
Employee Representative Director
AGE
38
TENURE
4.5 yrs

Zarko Djurovic

TITLE
Employee Representative Director
AGE
42
TENURE
3.6 yrs

Ronnie Leten

TITLE
Director
COMPENSATION
SEK990K
AGE
63
TENURE
2.3 yrs

Barb Samardzich

TITLE
Director
COMPENSATION
SEK710K
AGE
61
TENURE
2.3 yrs

Colleen Repplier

TITLE
Director
COMPENSATION
SEK710K
AGE
59
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (SEK) Value (SEK)
29. Oct 18 Buy Christian Johansson Individual 29. Oct 18 29. Oct 18 1,000 SEK136.80 SEK136,800
26. Oct 18 Buy FAM AB Company 26. Oct 18 26. Oct 18 1,000,000 SEK136.00 SEK134,741,219
X
Management checks
We assess AB SKF's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. AB SKF has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Read This Before Selling AB SKF (publ) (STO:SKF B) Shares

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … So before you buy or sell AB SKF (publ) (STO:SKF B), you may well want to know whether insiders have been buying or selling. … But logic dictates you should pay some attention to whether insiders are buying or selling shares.

Simply Wall St -

What Should You Know About AB SKF (publ)'s (STO:SKF B) Long Term Outlook?

In December 2018, AB SKF (publ) (STO:SKF B) announced its most recent earnings update, whicha … confirmed … business

Simply Wall St -

Here's Why I Think AB SKF (STO:SKF B) Might Deserve Your Attention Today

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story stocks' without revenue, let alone profit. … Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. … AB SKF maintained stable EBIT margins over the last year, all while growing revenue 10.0% to kr86b.

Simply Wall St -

Did AB SKF (publ) (STO:SKF B) Use Debt To Deliver Its ROE Of 21%?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … One way to conceptualize this, is that for each SEK1 of shareholders' equity it has, the company made SEK0.21 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Now An Opportune Moment To Examine AB SKF (publ) (STO:SKF B)?

saw a double-digit share price rise of over 10% in the past couple of months on the OM. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … Let’s examine AB SKF’s valuation and outlook in more detail to determine if there’s still a bargain opportunity

Simply Wall St -

Has AB SKF (publ) (STO:SKF B) Been Employing Capital Shrewdly?

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Stocks Take A Hit: How Will AB SKF (publ) (STO:SKF B) Fare?

Stock market crashes are an opportune time to buy. … High quality companies, such as AB SKF (publ), are impacted by general market panic and sell-off, but the fundamentals of these companies stay the same. … AB SKF (publ) offers bearings, seals, condition monitoring, lubrication systems, and services

Simply Wall St -

Do You Like AB SKF (publ) (STO:SKF B) At This P/E Ratio?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll look at AB SKF (publ)'s (STO:SKF B) P/E ratio and reflect on what it tells us about the company's share price. … How Do I Calculate AB SKF's Price To Earnings Ratio

Simply Wall St -

Company Info

Description

AB SKF (publ) offers bearings, seals, condition monitoring, lubrication systems, and services. It operates in two segments, Industrial and Automotive. The company’s products include bearings, units, and housings; seals; lubrication solutions; lubricants; actuation systems, ball and roller screws, linear guides and tables, and engineering tools; magnetic bearings/permanent magnetic electric motors; mechatronic solutions; maintenance products; condition monitoring systems; power transmission products and solutions; coupling systems; test and measurement equipment; and vehicle aftermarket products, such as wheel end, powertrain, driveline, and suspension products. Its services comprise asset management, customer training, engineering consultancy, logistics, mechanical maintenance, and remanufacturing and maintenance services. The company offers its solutions for various industries, including aerospace, agriculture, automation, cars and light trucks, compressors, construction, electric motors, food and beverage, home appliances, industrial fans and pumps, industrial transmissions, machine tools, marine, material handling, medical and health care, metals, mining, mineral processing, ocean energy, oil and gas, portable power tools, power generation, pulp and paper, racing, railways, skates, trucks, trailers and buses, two and three wheelers, and wind energy. AB SKF (publ) markets its products directly, as well as through a network of distributors in North America, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. The company was founded in 1907 and is headquartered in Gothenburg, Sweden.

Details
Name: AB SKF (publ)
SKF B
Exchange: OM
Founded: 1907
SEK73,401,102,884
455,351,068
Website: http://www.skf.com
Address: AB SKF (publ)
Hornsgatan 1,
Gothenburg,
Västra Götaland County, 415 50,
Sweden
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
OM SKF B Class B Shares OMX Nordic Exchange Stockholm SE SEK 02. Jan 1992
OTCPK SKUF.F Class B Shares Pink Sheets LLC US USD 02. Jan 1992
DB SKFB Class B Shares Deutsche Boerse AG DE EUR 02. Jan 1992
LSE 0NWX Class B Shares London Stock Exchange GB SEK 02. Jan 1992
BATS-CHIXE SKFBS Class B Shares BATS 'Chi-X Europe' GB SEK 02. Jan 1992
OTCPK SKFR.Y SPONSORED ADR Pink Sheets LLC US USD 25. Oct 1985
OM SKF A Class A Shares OMX Nordic Exchange Stockholm SE SEK 02. Jan 1992
DB SKFA Class A Shares Deutsche Boerse AG DE EUR 02. Jan 1992
BATS-CHIXE SKFAS Class A Shares BATS 'Chi-X Europe' GB SEK 02. Jan 1992
Number of employees
Current staff
Staff numbers
44,161
AB SKF employees.
Industry
Industrial Machinery
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/19 21:05
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/19
Last earnings filing: 2019/07/17
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.