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SKF

AB SKF OM:SKF B Stock Report

Last Price

kr155.05

Market Cap

kr71.2b

7D

-1.7%

1Y

-29.2%

Updated

05 Jul, 2022

Data

Company Financials +
SKF B fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends3/6

SKF B Stock Overview

AB SKF (publ) engages in the design, development, and manufacture of bearings, seals, lubrication systems, and services worldwide.

AB SKF Competitors

Price History & Performance

Summary of all time highs, changes and price drops for AB SKF
Historical stock prices
Current Share Pricekr155.05
52 Week Highkr234.60
52 Week Lowkr142.15
Beta1.19
1 Month Change-14.15%
3 Month Change6.93%
1 Year Change-29.23%
3 Year Change-2.08%
5 Year Change-10.79%
Change since IPO552.84%

Recent News & Updates

Mar 19
At kr165, Is It Time To Put AB SKF (publ) (STO:SKF B) On Your Watch List?

At kr165, Is It Time To Put AB SKF (publ) (STO:SKF B) On Your Watch List?

AB SKF (publ) ( STO:SKF B ), might not be a large cap stock, but it saw significant share price movement during recent...

Shareholder Returns

SKF BSE MachinerySE Market
7D-1.7%-4.3%-2.9%
1Y-29.2%-24.4%-25.5%

Return vs Industry: SKF B underperformed the Swedish Machinery industry which returned -23.5% over the past year.

Return vs Market: SKF B underperformed the Swedish Market which returned -24.9% over the past year.

Price Volatility

Is SKF B's price volatile compared to industry and market?
SKF B volatility
SKF B Average Weekly Movement4.9%
Machinery Industry Average Movement6.3%
Market Average Movement7.4%
10% most volatile stocks in SE Market12.2%
10% least volatile stocks in SE Market4.7%

Stable Share Price: SKF B is less volatile than 75% of Swedish stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SKF B's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
190742,763Gusta Gustafsonhttps://www.skf.com

AB SKF (publ) engages in the design, development, and manufacture of bearings, seals, lubrication systems, and services worldwide. It operates in two segments, Industrial and Automotive. The company offers rolling bearings, mounted bearings and housings, super-precision bearings, slewing bearings, plain bearings, magnetic bearings and systems, industrial and automotive seals, lubrication management solutions, maintenance products, condition monitoring systems, power transmission solutions, test and measuring equipment, vehicle aftermarket, and waste electric and electronic equipment products.

AB SKF Fundamentals Summary

How do AB SKF's earnings and revenue compare to its market cap?
SKF B fundamental statistics
Market Capkr71.21b
Earnings (TTM)kr7.53b
Revenue (TTM)kr84.81b

9.4x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SKF B income statement (TTM)
Revenuekr84.81b
Cost of Revenuekr60.75b
Gross Profitkr24.06b
Other Expenseskr16.52b
Earningskr7.53b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 20, 2022

Earnings per share (EPS)16.54
Gross Margin28.36%
Net Profit Margin8.88%
Debt/Equity Ratio36.6%

How did SKF B perform over the long term?

See historical performance and comparison

Dividends

4.5%

Current Dividend Yield

42%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is SKF B undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SKF B?

Other financial metrics that can be useful for relative valuation.

SKF B key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1x
Enterprise Value/EBITDA6.5x
PEG Ratio1.1x

Price to Earnings Ratio vs Peers

How does SKF B's PE Ratio compare to its peers?

SKF B PE Ratio vs Peers
The above table shows the PE ratio for SKF B vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average20.5x
TREL B Trelleborg
14.8x-12.4%kr54.9b
INDT Indutrade
30.5x8.2%kr69.3b
ALFA Alfa Laval
22.8x11.2%kr104.4b
SAND Sandvik
13.8x7.9%kr206.7b
SKF B AB SKF
9.4x8.8%kr71.2b

Price-To-Earnings vs Peers: SKF B is good value based on its Price-To-Earnings Ratio (9.4x) compared to the peer average (20.5x).


Price to Earnings Ratio vs Industry

How does SKF B's PE Ratio compare vs other companies in the SE Machinery Industry?

Price-To-Earnings vs Industry: SKF B is good value based on its Price-To-Earnings Ratio (9.4x) compared to the Swedish Machinery industry average (16.9x)


Price to Earnings Ratio vs Fair Ratio

What is SKF B's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SKF B PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.4x
Fair PE Ratio24.2x

Price-To-Earnings vs Fair Ratio: SKF B is good value based on its Price-To-Earnings Ratio (9.4x) compared to the estimated Fair Price-To-Earnings Ratio (24.2x).


Share Price vs Fair Value

What is the Fair Price of SKF B when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SKF B (SEK155.05) is trading below our estimate of fair value (SEK284.32)

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


Price to Earnings Growth Ratio

PEG Ratio: SKF B is poor value based on its PEG Ratio (1.1x)


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Future Growth

How is AB SKF forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SKF B's forecast earnings growth (8.8% per year) is above the savings rate (0.4%).

Earnings vs Market: SKF B's earnings (8.8% per year) are forecast to grow slower than the Swedish market (9.7% per year).

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

Revenue vs Market: SKF B's revenue (3.1% per year) is forecast to grow slower than the Swedish market (5.4% per year).

High Growth Revenue: SKF B's revenue (3.1% 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 (16.5%).


Discover growth companies

Past Performance

How has AB SKF performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


3.4%

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 (8.9%) are higher than last year (6.5%).


Past Earnings Growth Analysis

Earnings Trend: SKF B's earnings have grown by 3.4% per year over the past 5 years.

Accelerating Growth: SKF B's earnings growth over the past year (56%) exceeds its 5-year average (3.4% per year).

Earnings vs Industry: SKF B earnings growth over the past year (56%) exceeded the Machinery industry 47.2%.


Return on Equity

High ROE: SKF B's Return on Equity (16.9%) is considered low.


Discover strong past performing companies

Financial Health

How is AB SKF's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SKF B's short term assets (SEK54.7B) exceed its short term liabilities (SEK26.5B).

Long Term Liabilities: SKF B's short term assets (SEK54.7B) exceed its long term liabilities (SEK28.6B).


Debt to Equity History and Analysis

Debt Level: SKF B's net debt to equity ratio (17.1%) is considered satisfactory.

Reducing Debt: SKF B's debt to equity ratio has reduced from 77.5% to 36.6% over the past 5 years.

Debt Coverage: SKF B's debt is well covered by operating cash flow (28.7%).

Interest Coverage: SKF B's interest payments on its debt are well covered by EBIT (76.3x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


4.51%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SKF B's dividend (4.51%) is higher than the bottom 25% of dividend payers in the Swedish market (1.63%).

High Dividend: SKF B's dividend (4.51%) is low compared to the top 25% of dividend payers in the Swedish market (5.44%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (42.3%), SKF B's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (466%), SKF B's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

1.8yrs

Average management tenure


CEO

Gusta Gustafson (58 yo)

1.08yrs

Tenure

kr24,085,680

Compensation

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...


CEO Compensation Analysis

Compensation vs Market: Gusta's total compensation ($USD2.29M) is about average for companies of similar size in the Swedish market ($USD2.22M).

Compensation vs Earnings: Insufficient data to compare Gusta's compensation with company performance.


Leadership Team

Experienced Management: SKF B's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: SKF B's board of directors are considered experienced (3.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SKF B 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
  • Implied Market Cap: kr71.206b
  • 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 Analysis2022/07/05 00:00
End of Day Share Price2022/07/05 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.