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

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...

Denise Molina

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 reven...

Olof Larshammar

SKF (Buy, TP: SEK195.00) - Unfairly treated

We reiterate our BUY and have raised our target price to SEK195 (190). In a slow-growth environment in 2019e (volumes -3% YOY), we believe SKF should still be able to generate a solid EBIT margin of 11.4%, supported by price hikes, lower cost inflation (reduced headcount), and an FX tailwind. We have raised our 2019–2021e EBIT by 2–5%.

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

Olof Larshammar

SKF (Buy, TP: SEK190.00) - It’s all about the margin

It’s all about the margin

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

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...

Denise Molina

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 reven...

Olof Larshammar

SKF (Buy, TP: SEK195.00) - Unfairly treated

We reiterate our BUY and have raised our target price to SEK195 (190). In a slow-growth environment in 2019e (volumes -3% YOY), we believe SKF should still be able to generate a solid EBIT margin of 11.4%, supported by price hikes, lower cost inflation (reduced headcount), and an FX tailwind. We have raised our 2019–2021e EBIT by 2–5%.

Olof Larshammar

SKF (Buy, TP: SEK190.00) - It’s all about the margin

It’s all about the margin

Denise Molina

Morningstar | SKF's Earnings Are Volatile Through the Cycle, but Its Moat Draws a Line Under Margin Contraction

We have decreased our fair value estimate for narrow-moat SKF to SEK 185 from SEK 195 per share, as we are modelling in a slight dip in demand for 2019 versus our previous forecast of modest growth. Demand for SKF's products is tied to the business cycle, which means the company's earnings are volatile; however, unlike a commodity producer, SKF is able to hold pricing through the cycle. In addition, a portion of demand for the company's product has some buffer due to a replacement cycle as well as structural investment in transportation, process industries, and wind turbines, all of which have...

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

Christer Magnergård ...
  • Mattias Holmberg
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Stefan Gauffin

Northern Lights

Antti Kansanen ...
  • Christer Magnergård
  • Eivind Sars Veddeng
  • Håkon Astrup
  • Karl-Johan Bonnevier
  • Martin Arnell
  • Mattias Holmberg
  • Nicolas McBeath
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Patrik Ling
  • Rune Majlund Dahl
  • Simen Mortensen

Weak H1, risky 2018 but interesting 2019e

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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