ScoreWhy is SKF AB ?
1
Poor long term growth as Operating profit has grown by an annual rate 4.28% of over the last 5 years
2
Flat results in Jun 26
- OPERATING CASH FLOW(Y) Lowest at SEK 5,997 MM
- NET PROFIT(9M) At SEK 4,210.85 MM has Grown at -22.96%
- INVENTORY TURNOVER RATIO(HY) Lowest at 2.52 times
3
With ROE of 10.48%, it has a very expensive valuation with a 1.85 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 11.98%, its profits have fallen by -23.5%
4
Underperformed the market in the last 1 year
- The stock has generated a return of 11.98% in the last 1 year, much lower than market (OMX Stockholm 30) returns of 27.70%
Real-Time Research ReportHow 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?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
SKF AB
11.98%
44.95
29.26%
OMX Stockholm 30
27.7%
1.79
15.50%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.12%
EBIT Growth (5y)
4.28%
EBIT to Interest (avg)
8.51
Debt to EBITDA (avg)
0.72
Net Debt to Equity (avg)
0.15
Sales to Capital Employed (avg)
1.29
Tax Ratio
34.81%
Dividend Payout Ratio
89.86%
Pledged Shares
0
Institutional Holding
0.05%
ROCE (avg)
16.88%
ROE (avg)
14.12%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
18
Industry P/E
Price to Book Value
1.85
EV to EBIT
11.40
EV to EBITDA
7.92
EV to Capital Employed
1.75
EV to Sales
1.26
PEG Ratio
NA
Dividend Yield
1.29%
ROCE (Latest)
15.40%
ROE (Latest)
10.48%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
INTEREST COVERAGE RATIO(Q)
Highest at 1,934.42
RAW MATERIAL COST(Y)
Fallen by -22.78% (YoY
NET SALES(Q)
Highest at SEK 23,195 MM
OPERATING PROFIT(Q)
Highest at SEK 4,159 MM
-7What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at SEK 5,997 MM
NET PROFIT(9M)
At SEK 4,210.85 MM has Grown at -22.96%
INVENTORY TURNOVER RATIO(HY)
Lowest at 2.52 times
Here's what is working for SKF AB
Interest Coverage Ratio
Highest at 1,934.42
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Sales
Highest at SEK 23,195 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (SEK MM)
Operating Profit
Highest at SEK 4,159 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (SEK MM)
Raw Material Cost
Fallen by -22.78% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at SEK 1,303 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (SEK MM)
Depreciation
At SEK 1,303 MM has Grown at 35.73%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (SEK MM)
Here's what is not working for SKF AB
Operating Cash Flow
Lowest at SEK 5,997 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (SEK MM)
Inventory Turnover Ratio
Lowest at 2.52 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Net Profit
At SEK 4,210.85 MM has Grown at -22.96%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is negative
Net Profit (SEK MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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