AB SKF is the parent company of the SKF Group, which supplies products, solutions and services within rolling bearings, seals, mechatronics, services and lubrication systems. Services include technical support, maintenance services, condition monitoring, asset optimization, engineering consultancy and training. Co.'s business areas are: SKF Industrial Market - Strategic Industries, which includes bearings and bearing accessories and lubrication systems; SKF Industrial Market - Regional Sales and Service, which develops SKF Solution Factory facilities providing engineering capability; and SKF Automotive, which develops and manufactures bearings, seals and related products and services.
  • TickerSKF B
  • ISINSE0000108227
  • ExchangeNasdaq Nordic Stockholm
  • SectorIndustrial Engineering
  • CountrySweden

Analysts

Christer Magnergård ...
  • Christoffer Wang Bjørnsen
  • Håkon Astrup
  • Jon Berggren
  • Karl-Johan Bonnevier
  • Martin Arnell
  • Mattias Holmberg
  • Niclas Gehin
  • Nicolas McBeath
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Patrik Ling
  • Stefan Gauffin
  • Tomi Railo

Weak report across the board

Olof Larshammar

SKF (Buy, TP: SEK200.00) - Caterpillar turning into a butterfly

Demand is weakening slowly but we expect SKF to continue to deliver results above consensus as cost control is improving and price continues to offset lower volume. Our 2019–2021 adj EBIT forecasts are 4–7% above consensus. At a 16% discount versus its own EV/sales multiples, we believe there is plenty of value in the shares, and believe that current levels offer a particularly good buying opportunity. We reiterate our BUY and our SEK200 target price.

Denise Molina

Morningstar | SKF B Updated Forecasts and Estimates from 17 Jul 2019

Narrow-moat SKF's second-quarter normalised EBIT (excluding restructuring costs) beat market expectations with shares reacting positively. However, revenue declined for the first time in nine quarters on an organic basis. We have been forecasting weaker top-line growth in 2019 and so are maintaining our SEK 185 fair value estimate, which still offers about 10% upside to the share price. The company's larger industrial segment grew revenue less than 1% year over year, a deceleration from the past several quarters and the lowest growth since fourth-quarter 2016. Across its different regions, we...

Denise Molina

SKF's Normalised Margins Robust; Top Line Less So

Narrow-moat SKF's second-quarter normalised EBIT (excluding restructuring costs) beat market expectations with shares reacting positively. However, revenue declined for the first time in nine quarters on an organic basis. We have been forecasting weaker top-line growth in 2019 and so are maintaining our SEK 185 fair value estimate, which still offers about 10% upside to the share price. The company's larger industrial segment grew revenue less than 1% year over year, a deceleration from the past...

Jesper Ingildsen ...
  • Joachim Gunell
  • Mattias Holmberg
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Patrik Ling
  • Rune Majlund Dahl

Northern Lights

SKF AB: Annual Update

CORPORATES CREDIT OPINION 9 February 2017 Update RATINGS SKF AB Domicile Sweden Long Term Rating Baa2 Type Senior Unsecured - Fgn Curr Outlook Stable Please see the ratings section at the end of this report for more information. The ratings and outlook shown reflect information as of the publication date. Contacts Oliver Giani 49-69-70730-722

Olof Larshammar

SKF (Buy, TP: SEK200.00) - Caterpillar turning into a butterfly

Demand is weakening slowly but we expect SKF to continue to deliver results above consensus as cost control is improving and price continues to offset lower volume. Our 2019–2021 adj EBIT forecasts are 4–7% above consensus. At a 16% discount versus its own EV/sales multiples, we believe there is plenty of value in the shares, and believe that current levels offer a particularly good buying opportunity. We reiterate our BUY and our SEK200 target price.

Denise Molina

Morningstar | SKF B Updated Forecasts and Estimates from 17 Jul 2019

Narrow-moat SKF's second-quarter normalised EBIT (excluding restructuring costs) beat market expectations with shares reacting positively. However, revenue declined for the first time in nine quarters on an organic basis. We have been forecasting weaker top-line growth in 2019 and so are maintaining our SEK 185 fair value estimate, which still offers about 10% upside to the share price. The company's larger industrial segment grew revenue less than 1% year over year, a deceleration from the past several quarters and the lowest growth since fourth-quarter 2016. Across its different regions, we...

Denise Molina

SKF's Normalised Margins Robust; Top Line Less So

Narrow-moat SKF's second-quarter normalised EBIT (excluding restructuring costs) beat market expectations with shares reacting positively. However, revenue declined for the first time in nine quarters on an organic basis. We have been forecasting weaker top-line growth in 2019 and so are maintaining our SEK 185 fair value estimate, which still offers about 10% upside to the share price. The company's larger industrial segment grew revenue less than 1% year over year, a deceleration from the past...

Olof Larshammar

SKF (Buy, TP: SEK200.00) - Strong profitability in Q2

Despite organic growth of -2% YOY, we expect Q2 to be a positive share price catalyst as price increases should partly offset lower growth, raw material headwinds and cost inflation. Our Q2e adj. EBIT is 5% above consensus. At a 15% discount versus own EV/sales, we see plenty of value in the shares. We have raised our 2020–2021e EBIT by 2–3% due to cost savings from the Schweinfurt plant. We reiterate our BUY and have raised our target price to SEK200 (195).

Denise Molina

Morningstar | SKF's 1Q Reflects Weak Automotive End Market; Shares Fairly Valued

Consistent with other European capital goods and component suppliers in our coverage, narrow-moat SKF's first-quarter results reflected weakness in the automotive sector but stable orders across the entire industry. We are maintaining our SEK 185 fair value estimate and find the shares fairly valued. Organic revenue declined by 6% in the company's automotive division. Lower volumes contributed to a 220 basis point contraction in the EBIT margin. This segment contributes under half of group revenue with the rest coming from the industry in general. In that segment organic revenue grew by 3% an...

Christer Magnergård ...
  • Christoffer Wang Bjørnsen
  • Håkon Astrup
  • Jon Berggren
  • Karl-Johan Bonnevier
  • Martin Arnell
  • Mattias Holmberg
  • Niclas Gehin
  • Nicolas McBeath
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Patrik Ling
  • Stefan Gauffin
  • Tomi Railo

Weak report across the board

Jesper Ingildsen ...
  • Joachim Gunell
  • Mattias Holmberg
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Patrik Ling
  • Rune Majlund Dahl

Northern Lights

Eivind Sars Veddeng ...
  • Joachim Gunell
  • Jon Masdal
  • Karl-Johan Bonnevier
  • Marius Knudssøn
  • Martin Arnell
  • Martin Hoang Nguyen
  • Mattias Montgomery
  • Nicolai Farstad Olsen
  • Ole-Andreas Krohn
  • Olof Larshammar

Northern Lights

Christer Magnergård ...
  • Nicolas McBeath
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Rune Majlund Dahl
  • Simen Mortensen

Northern Lights

Martin Arnell ...
  • Mattias Holmberg
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Paul Harper

Northern Lights

Increased risk weighs on SKF AB, penalising its rating down to Slightly Negative

The independent financial analyst theScreener just lowered the general evaluation of SKF AB (SE), active in the Industrial Machinery industry. As regards its fundamental valuation, the title still shows 2 out of 4 possible stars. Its market behaviour, however, has slightly deteriorated and will be qualified as risky moving forward. theScreener considers that these new qualifications justify an overall rating downgrade to Slightly Negative. As of the analysis date March 19, 2019, the closing price was SEK 162.55 and its target price was estimated at SEK 132.19.

Ibrahim Firdaus

SKF

Ibrahim Firdaus

SKF

Ibrahim Firdaus

SKF

Ibrahim Firdaus

SKF

Expert Corporate Governance Service (ECGS)

SKF, March 28, 2019

In general, SKF is in compliance with the Swedish regulations relating to the organisation and procedures of the Annual General Meeting. Under ITEMS 14.1-14.9, the (re-)election of the board of directors is proposed. In light of insufficient independent representation on the board as well as concerns over aggregate time commitments, ECGS recommends to vote OPPOSE to the (re-)election  of: Mr. Hans Straberg (ITEM 14.1), Mr. Lars Wedenborn (ITEM 14.2), Ms. Nancy Gougarty (ITEM 14.5), Mr. Ronnie Leten (ITEM 14.6), Ms. Colleen Repplier (ITEM 14.8) and proposed new nominee Mr. Geert Follens (ITEM ...

SKF – Proxinvest Corporate Governance Rating ® : C

Proxinvest Corporate Governance Rating ® helps investors integrate governance into their investment decision and identify governance risks and opportunities within their portfolio. Proxinvest Corporate Governance Rating ® Service rates European issuers through the analysis of four main themes : Ownership & Shareholder rights, Board & Committees, Audit & Process, Remuneration. Each theme is rated taking into account several comprehensive sub-categories. Our unique two-step process to achieve each rating includes a first step quantitative valuation and a second step qualitative filter...

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