SKF AB Class B SKF B

Morningstar Rating
SEK 275.60 +8.40 (3.14%)
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Company Report

Separation of SKF's Auto Business Is on Track to Deliver Value

SKF is a global leader in industrial bearings and rotating equipment solutions, operating in segments where reliability, efficiency, and engineering know-how matter most. The company is reshaping itself into two focused businesses, industrial and automotive, to sharpen strategic execution and unlock value. We believe the separation will improve focus and resource allocation as the two segments serve different customers, operate on different sales cycles, and face distinct competitive dynamics. We do, however, expect some near-term separation pains, as the process will be costly and operationally disruptive before the benefits materialize.

Price vs Fair Value

SKF B is trading at a LOCK|%qC&c<d premium.
Price
SEK 275.60
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Growing service mix should drive margin expansion as predictive maintenance, condition monitoring, and remanufacturing continue to scale.

Bears

Rising competition from regional manufacturers could pressure pricing and slow margin expansion, particularly in standardized bearing categories.

Trading Information

Previous Close Price
SEK 267.20
Day Range
SEK 269.70–277.00
52-Week Range
SEK 204.80–280.10
Bid/Ask
SEK 275.30 / SEK 275.50
Shares Outstanding
455.35M
Market Cap
SEK 125.49B
Volume/Avg
1M / 1M

Key Statistics

Price/Earnings (Normalized)
20.84
Price/Sales
1.36
Dividend Yield (Trailing)
1.45%
Dividend Yield (Forward)
1.45%
Dividend Payment Schedule
Apr
Total Yield
1.45%

Company Profile

SKF’s history goes back to the first major patents in ball bearings, when in 1907 it was the first to patent the self-aligning ball bearing. SKF and Schaeffler Group are the top two global ball bearing suppliers, followed by Timken, NSK, NTN, and JTEKT. Combined, these six companies supply about 60% of the world’s ball bearings. However, most of them have sector niches, as ball bearings for industrial purposes are engineered for specific applications. SKF is based in Sweden and has a global manufacturing footprint of 106 sites and about 17,000 global distributor locations. The firm operates under two segments: industrials, with a fairly fragmented customer base; and automotive, which is the opposite, with a concentrated customer base including the likes of Tesla.
Sector
Industrials
Industry
Tools & Accessories
Stock Style Box
Mid Core
Total Number of Employees
36,460

Competitors

Valuation

Metric
SKF B
EMR
JCI
Price/Earnings (Normalized)
20.8425.0532.78
Price/Book Value
2.114.346.82
Price/Sales
1.364.793.75
Price/Cash Flow
14.2421.4624.93
Price/Earnings
SKF B
EMR
JCI

Financial Strength

Metric
SKF B
EMR
JCI
Quick Ratio
1.050.490.67
Current Ratio
2.190.901.00
Interest Coverage
7.747.9413.92
Quick Ratio
SKF B
EMR
JCI

Profitability

Metric
SKF B
EMR
JCI
Return on Assets (Normalized)
7.10%7.07%7.49%
Return on Equity (Normalized)
14.32%14.73%21.34%
Return on Invested Capital (Normalized)
11.51%9.51%13.00%
Return on Assets
SKF B
EMR
JCI

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