OM:SKF B

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Excellent balance sheet and good value.


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

Stable Share Price: SKF B has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.9%

SKF B

-3.7%

SE Machinery

-4.2%

SE Market


1 Year Return

2.9%

SKF B

10.8%

SE Machinery

9.5%

SE Market

Return vs Industry: SKF B underperformed the Swedish Machinery industry which returned 16.1% over the past year.

Return vs Market: SKF B underperformed the Swedish Market which returned 13.4% over the past year.


Shareholder returns

SKF BIndustryMarket
7 Day-2.9%-3.7%-4.2%
30 Day5.1%0.3%-0.8%
90 Day11.2%3.3%3.6%
1 Year5.1%2.9%11.5%10.8%11.5%9.5%
3 Year9.7%0.03%21.8%4.1%27.5%13.8%
5 Year45.2%23.6%112.7%72.3%54.0%24.2%

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?

21.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SKF B (SEK185.85) is trading above our estimate of fair value (SEK165.49)

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 (21.6x) compared to the SE Machinery industry average (24.1x).

PE vs Market: SKF B is good value based on its PE Ratio (21.6x) compared to the Swedish market (22.2x).


Price to Earnings Growth Ratio

PEG Ratio: SKF B is good value based on its PEG Ratio (0.6x)


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 (3.2x).


Next Steps

Future Growth

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

33.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SKF B's forecast earnings growth (33.9% per year) is above the savings rate (0.5%).

Earnings vs Market: SKF B's earnings (33.9% per year) are forecast to grow faster than the Swedish market (12.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SKF B's revenue (4.2% per year) is forecast to grow faster than the Swedish market (3.2% per year).

High Growth Revenue: SKF B's revenue (4.2% 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 (16.1%).


Next Steps

Past Performance

How has AB SKF performed over the past 5 years?

9.9%

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 (5%) are lower than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: SKF B's earnings have grown by 9.9% per year over the past 5 years.

Accelerating Growth: SKF B's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SKF B had negative earnings growth (-42.9%) over the past year, making it difficult to compare to the Machinery industry average (-25.1%).


Return on Equity

High ROE: SKF B's Return on Equity (11.1%) is considered low.


Next Steps

Financial Health

How is AB SKF's financial position?


Financial Position Analysis

Short Term Liabilities: SKF B's short term assets (SEK48.4B) exceed its short term liabilities (SEK23.8B).

Long Term Liabilities: SKF B's short term assets (SEK48.4B) exceed its long term liabilities (SEK34.1B).


Debt to Equity History and Analysis

Debt Level: SKF B's debt to equity ratio (50.1%) is considered high.

Reducing Debt: SKF B's debt to equity ratio has reduced from 90.7% to 50.1% over the past 5 years.

Debt Coverage: SKF B's debt is well covered by operating cash flow (41.7%).

Interest Coverage: SKF B's interest payments on its debt are well covered by EBIT (14.2x coverage).


Balance Sheet


Next Steps

Dividend

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

1.61%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SKF B's dividend (1.61%) is higher than the bottom 25% of dividend payers in the Swedish market (1.22%).

High Dividend: SKF B's dividend (1.61%) is low compared to the top 25% of dividend payers in the Swedish market (4.13%).


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 fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.9%), 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 (45.8% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Alrik Danielson (58 yo)

5.75yrs

Tenure

kr28,977,090

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 ($USD3.32M) is above average for companies of similar size in the Swedish market ($USD1.90M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Alrik Danielson
President5.75yrskr28.98m0.013%
SEK 11.3m
Niclas Rosenlew
Senior VP & CFO1.33yrsno datano data
Carina van den Berg
Director of Group Controlling & Accountingno datano datano data
Victoria Van Camp
CTO and President of Innovation & Business Developmentno datano data0.0041%
SEK 3.5m
Patrik Stenberg
Director of Group Investor Relations & Competitive Intelligence and Head of Investor Relationsno datano datano data
Mathias Lyon
Senior VP of Group Legal & General Counsel0.083yrno datano data
Ann-Sofie Zaks
Senior Vice President of Human Resources0.083yrno datano data
Kent Viitanen
President of Bearing Operationsno datano data0.0039%
SEK 3.4m
Theo Kjellberg
Head of Media Relationsno datano datano data
Bernd Stephan
0.33yrno data0.0039%
SEK 3.4m
Patrick Tong
President of Industrial Sales Asia4.67yrsno data0.0039%
SEK 3.4m
Erik Nelander
President of Industrial Sales Europe4.67yrsno data0.0042%
SEK 3.6m

1.3yrs

Average Tenure

55yo

Average Age

Experienced Management: SKF B's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Alrik Danielson
President5.75yrskr28.98m0.013%
SEK 11.3m
Barbara Samardzich
Independent Director3.58yrskr732.00kno data
Kennet Carlsson
Employee Representative Deputy Directorno datano data0.000020%
SEK 17.3k
Hock Goh
Independent Director6.58yrskr732.00kno data
Geert Follens
Independent Director1.58yrskr732.00k0.00033%
SEK 286.0k
Ronnie Leten
Director3.58yrskr1.02m0.0022%
SEK 1.9m
Hakan Buskhe
Director0.58yrno datano data
Colleen Repplier
Independent Director2.58yrskr732.00kno data
Susanna Schneeberger
Director0.58yrno datano data
Claes Palm
Employee Representative Deputy Directorno datano datano data
Hans Stråberg
Independent Chairman2.58yrskr2.45m0.0033%
SEK 2.9m

2.6yrs

Average Tenure

60yo

Average Age

Experienced Board: SKF B's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


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 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: kr86.680b
  • 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
0NWWLSE (London Stock Exchange)Class A SharesGBSEKJan 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) provides bearings, seals, condition monitoring, and lubrication systems. The company operates in two segments, Industrial and Automotive. It offers products in various categories, such as rol ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 22:12
End of Day Share Price2020/10/26 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.