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

Bulten AB

SSAB AB

Alimak Group AB

Bufab AB

Beijer Alma AB

Indutrade AB

SKF AB

Troax Group 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

The company has declared Negative results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at SEK 6,759 MM
NET PROFIT(HY) At SEK 2,666.67 MM has Grown at -25.68%
ROCE(HY) Lowest at 6.6%

With ROE of 11.18%, it has a very expensive valuation with a 1.88 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 19.50%, its profits have fallen by -22.5%

Underperformed the market in the last 1 year

The stock has generated a return of 19.50% in the last 1 year, much lower than market (OMX Stockholm 30) returns of 30.13%

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?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

SKF AB

19.5%

45.37

27.88%

OMX Stockholm 30

30.13%

1.89

15.95%

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)

1.32

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

1.88

EV to EBIT

10.67

EV to EBITDA

7.25

EV to Capital Employed

1.82

EV to Sales

1.14

PEG Ratio

Dividend Yield

2.62%

ROCE (Latest)

17.07%

ROE (Latest)

11.18%

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

6What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.22% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 12.5 %

OPERATING PROFIT MARGIN(Q)

Highest at 18.37 %

PRE-TAX PROFIT(Q)

Highest at SEK 3,009 MM

NET PROFIT(Q)

Highest at SEK 2,098.67 MM

-14What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SEK 6,759 MM

NET PROFIT(HY)

At SEK 2,666.67 MM has Grown at -25.68%

ROCE(HY)

Lowest at 6.6%

NET SALES(Q)

Lowest at SEK 21,873 MM

CASH AND EQV(HY)

Lowest at SEK 17,533 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.62 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.33 times

Here's what is working for SKF AB

Operating Profit Margin

Highest at 18.37 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at SEK 3,009 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (SEK MM)

Net Profit

Highest at SEK 2,098.67 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (SEK MM)

Net Profit

At SEK 2,098.67 MM has Grown at 48.11%

over average net sales of the previous four periods of SEK 1,416.98 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (SEK MM)

Debt-Equity Ratio

Lowest at 12.5 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -1.22% (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

Here's what is not working for SKF AB

Operating Cash Flow

Lowest at SEK 6,759 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 21,873 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (SEK MM)

Cash and Eqv

Lowest at SEK 17,533 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 2.62 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 5.33 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio