SKF AB (SKF B) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Precomp Solutions AB

Bufab AB

Indutrade AB

Alimak Group AB

SSAB AB

Beijer Alma AB

Troax Group AB

Bulten AB

SKF AB

Why is SKF AB ?

Poor long term growth as Operating profit has grown by an annual rate 4.28% of over the last 5 years

With a fall in Net Sales of -2.28%, the company declared Very Negative results in Dec 25

OPERATING CASH FLOW(Y) Lowest at SEK 8,392 MM
ROCE(HY) Lowest at 6.94%
INVENTORY TURNOVER RATIO(HY) Lowest at 2.67 times

With ROE of 14.29%, it has a very expensive valuation with a 2.00 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 2.50%, its profits have risen by 2.9% ; the PEG ratio of the company is 4.9

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is SKF AB for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

SKF AB

2.5%

40.15

27.36%

OMX Stockholm 30

10.97%

0.59

18.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.12%

EBIT Growth (5y)

4.28%

EBIT to Interest (avg)

11.44

Debt to EBITDA (avg)

0.65

Net Debt to Equity (avg)

0.15

Sales to Capital Employed (avg)

1.33

Tax Ratio

23.76%

Dividend Payout Ratio

89.86%

Pledged Shares

Institutional Holding

0.05%

ROCE (avg)

18.16%

ROE (avg)

14.12%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.00

EV to EBIT

10.32

EV to EBITDA

7.31

EV to Capital Employed

1.86

EV to Sales

1.20

PEG Ratio

4.90

Dividend Yield

2.48%

ROCE (Latest)

18.05%

ROE (Latest)

14.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 10.97 %

-30What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SEK 8,392 MM

ROCE(HY)

Lowest at 6.94%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.67 times

NET SALES(Q)

Lowest at SEK 21,969 MM

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 7.51% (YoY

CASH AND EQV(HY)

Lowest at SEK 17,095 MM

DIVIDEND PER SHARE(HY)

Lowest at SEK 4.93

OPERATING PROFIT(Q)

Lowest at SEK 2,632 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 11.98 %

PRE-TAX PROFIT(Q)

Lowest at SEK 1,284 MM

NET PROFIT(Q)

Lowest at SEK 568 MM

Here's what is working for SKF AB

Debt-Equity Ratio

Lowest at 10.97 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for SKF AB

Pre-Tax Profit

At SEK 1,284 MM has Fallen at -46.95%

over average net sales of the previous four periods of SEK 2,420.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SEK MM)

Net Profit

At SEK 568 MM has Fallen at -65.61%

over average net sales of the previous four periods of SEK 1,651.73 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SEK MM)

Operating Cash Flow

Lowest at SEK 8,392 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (SEK MM)

Net Sales

Lowest at SEK 21,969 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (SEK MM)

Inventory Turnover Ratio

Lowest at 2.67 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Profit

Lowest at SEK 2,632 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (SEK MM)

Operating Profit Margin

Lowest at 11.98 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at SEK 1,284 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SEK MM)

Net Profit

Lowest at SEK 568 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SEK MM)

Cash and Eqv

Lowest at SEK 17,095 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Dividend per share

Lowest at SEK 4.93

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (SEK)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 7.51% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales