OM:SKF B

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

How has AB SKF's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.0%

SKF B

4.1%

SE Machinery

2.1%

SE Market


1 Year Return

19.2%

SKF B

18.5%

SE Machinery

12.1%

SE Market

Return vs Industry: SKF B matched the Swedish Machinery industry which returned 18.5% over the past year.

Return vs Market: SKF B exceeded the Swedish Market which returned 12.1% over the past year.


Shareholder returns

SKF BIndustryMarket
7 Day4.0%4.1%2.1%
30 Day5.4%1.1%1.6%
90 Day8.6%4.7%3.7%
1 Year23.9%19.2%22.3%18.5%16.8%12.1%
3 Year26.6%14.4%57.1%30.5%32.2%12.4%
5 Year42.2%20.6%100.1%57.6%62.8%28.3%

Price Volatility Vs. Market

How volatile is AB SKF's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

11.69x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SKF B (SEK176.1) is trading above our estimate of fair value (SEK171.99)

Significantly Below Fair Value: SKF B is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SKF B is good value based on its PE Ratio (11.7x) compared to the Machinery industry average (16.4x).

PE vs Market: SKF B is good value based on its PE Ratio (11.7x) compared to the Swedish market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: SKF B is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: SKF B is good value based on its PB Ratio (2.4x) compared to the SE Machinery industry average (3x).


Next Steps

Future Growth

How is AB SKF forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

3.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SKF B's forecast earnings growth (3.2% per year) is above the savings rate (0.4%).

Earnings vs Market: SKF B's earnings (3.2% per year) are forecast to grow slower than the Swedish market (9.3% per year).

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

Revenue vs Market: SKF B's revenue (1.6% per year) is forecast to grow slower than the Swedish market (4.5% per year).

High Growth Revenue: SKF B's revenue (1.6% 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%).


Next Steps

Past Performance

How has AB SKF performed over the past 5 years?

19.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SKF B's earnings have grown by 19.1% per year over the past 5 years.

Accelerating Growth: SKF B's earnings growth over the past year (4.3%) is below its 5-year average (19.1% per year).

Earnings vs Industry: SKF B earnings growth over the past year (4.3%) underperformed the Machinery industry 19.3%.


Return on Equity

High ROE: SKF B's Return on Equity (20%) is considered high.


Return on Assets

ROA vs Industry: SKF B's Return on Assets is below or equal to the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: SKF B has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is AB SKF's financial position?


Financial Position Analysis

Short Term Liabilities: SKF B's short term assets (SEK49.4B) exceeds its short term liabilities (SEK23.6B)

Long Term Liabilities: SKF B's short term assets (49.4B) exceeds its long term liabilities (35.6B)


Debt to Equity History and Analysis

Debt Level: SKF B's debt to equity ratio (50%) is considered high

Reducing Debt: SKF B's debt to equity ratio has reduced from 111.6% to 50% over the past 5 years.

Debt Coverage: SKF B's debt is well covered by operating cash flow (50%).

Interest Coverage: SKF B's interest payments on its debt are well covered by EBIT (16.4x coverage).


Balance Sheet

Inventory Level: SKF B has a high level of physical assets or inventory.

Debt Coverage by Assets: SKF B's debt is covered by short term assets (assets are 2.769250x debt).


Next Steps

Dividend

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

3.41%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%1.8%markettop25%4.6%industryaverage2.6%forecastin3Years3.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: SKF B's dividend (3.41%) is higher than the bottom 25% of dividend payers in the Swedish market (1.81%).

High Dividend: SKF B's dividend (3.41%) is low compared to the top 25% of dividend payers in the Swedish market (4.65%).

Stable Dividend: SKF B's dividends per share have been stable 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 (39.8%), 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 (48.5% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Alrik Danielson (57yo)

4.8yrs

Tenure

kr19,278,120

Compensation

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  ...


CEO Compensation Analysis

Compensation vs. Market: Alrik's total compensation ($USD1.99M) is about average for companies of similar size in the Swedish market ($USD1.53M).

Compensation vs Earnings: Alrik's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.1yrs

Average Tenure

57yo

Average Age

Experienced Management: SKF B's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

3.2yrs

Average Tenure

60.5yo

Average Age

Experienced Board: SKF B's board of directors are considered experienced (3.2 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buykr136,80029 Oct 18
Christian Johansson
EntityIndividual
Shares1,000
Max Pricekr136.80
Buykr134,741,21926 Oct 18
FAM AB
EntityCompany
Shares1,000,000
Max Pricekr136.00

Ownership Breakdown


Management Team

  • Manfred Neubert (66yo)

    President - SKF Gmbh

    • Tenure: 0yrs
  • Carina Bergfelt (59yo)

    General Counsel

    • Tenure: 23.8yrs
  • Alrik Danielson (57yo)

    President

    • Tenure: 4.8yrs
    • Compensation: kr19.28m
  • Patrik Stenberg

    Head of Investor Relations

    • Tenure: 0yrs
  • Kent Viitanen (54yo)

    President of Bearing Operations

    • Tenure: 2.1yrs
  • Theo Kjellberg

    Head of Media Relations & Director of Corporate Communication

    • Tenure: 0yrs
  • Niclas Rosenlew (47yo)

    Senior VP & CFO

    • Tenure: 0.3yrs
  • Victoria Van Camp (53yo)

    CTO and President of Innovation & Business Development

    • Tenure: 0yrs
  • Carina van den Berg

    Director of Group Controlling & Accounting

    • Tenure: 0yrs
  • Thomas Fröst (57yo)

    President of Industrial Technologies

    • Tenure: 0.8yrs

Board Members

  • Lars Wedenborn (61yo)

    Director

    • Tenure: 11.5yrs
    • Compensation: kr1.06m
  • Barb Samardzich (61yo)

    Director

    • Tenure: 2.6yrs
    • Compensation: kr710.00k
  • Alrik Danielson (57yo)

    President

    • Tenure: 4.8yrs
    • Compensation: kr19.28m
  • Hock Goh (64yo)

    Director

    • Tenure: 5.6yrs
    • Compensation: kr710.00k
  • Geert Follens (60yo)

    Director

    • Tenure: 0.5yrs
  • Ronnie Leten (63yo)

    Director

    • Tenure: 2.6yrs
    • Compensation: kr990.00k
  • Colleen Repplier (59yo)

    Director

    • Tenure: 1.6yrs
    • Compensation: kr710.00k
  • Jonny Hilbert (38yo)

    Employee Representative Director

    • Tenure: 4.8yrs
  • Zarko Djurovic (42yo)

    Employee Representative Director

    • Tenure: 3.8yrs
  • Hans Stråberg (62yo)

    Chairman

    • Tenure: 1.6yrs
    • Compensation: kr2.38m

Company Information

AB SKF (publ)'s company bio, 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: kr80.164b
  • Shares outstanding: 455.35m
  • Website: https://www.skf.com

Number of Employees


Location

  • AB SKF (publ)
  • Hornsgatan 1
  • Gothenburg
  • Västra Götaland County
  • 415 50
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SKFR.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDOct 1985
SKUF.FOTCPK (Pink Sheets LLC)YesClass B SharesUSUSDJan 1992
0NWXLSE (London Stock Exchange)YesClass B SharesGBSEKJan 1992
SKF AOM (OMX Nordic Exchange Stockholm)Class A SharesSESEKJan 1992
SKF BOM (OMX Nordic Exchange Stockholm)YesClass B SharesSESEKJan 1992
SKFADB (Deutsche Boerse AG)Class A SharesDEEURJan 1992
SKFBDB (Deutsche Boerse AG)YesClass B SharesDEEURJan 1992
SKFBSBATS-CHIXE (BATS 'Chi-X Europe')YesClass B SharesGBSEKJan 1992
SKFASBATS-CHIXE (BATS 'Chi-X Europe')Class A SharesGBSEKJan 1992

Biography

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 ho ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 20:52
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.