SKF AB Class B
SKF B: XSTO (SWE)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| SEK 915.00 | Lxrkf | Zgblvxll |
SKF's Growth Opportunities Are Slim With the Exception of Electric Vehicles
Business Strategy and Outlook
SKF's core market is treading water from a growth perspective, and management's plan for faster top-line growth to double revenue by "2030" is fairly high level in its outline and therefore difficult for investors to assess. SKF has deep engineering expertise and a leading position in ball bearings; however, growth from new market opportunities will still take time and investment. Of the high level opportunities presented by the company, ceramic ball bearings for the electric vehicle market is one of the most promising. The market for EVs will expand over time, as the adoption is supported by regulators and consumers alike. Therefore, SKF's ceramic bearing solution should yield positive results as EV takeup accelerates.