Rankings Machinery & automation SKF
SKF
61
15070100
A view of the same findings, not a new score. How it works
A good business with a real question mark: the price, a crack, or both.
Biggest deductions
- Multiples vs own history−5
- Quality of growth−4
- ROIC−4
Strengths
- Pricing power+2
How the score is built
From 100 to 61, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 3 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 276.40 SEK
- Median analyst target
- 280.00 SEK
- Upside to median
- +1.3%
- Analysts
- 18
- Target range
- 205.00 – 325.00 SEK
- 52-week change
- +14%
- P/E (trailing)
- 26.4
- Forward P/E
- 13.7
- PEG
- 2.48
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 3 findings−10 of −30
- −4Quality of growthRevenue has fallen from DKK 103.9bn (2023) via 98.7 to DKK 91.6bn (2025), partly because of currency and divestments, and consensus expects −0.3% in 2026. Organic growth was only 1.9% in H1 2026 after −1.8% the year before. Automotive is weak, and Bearing Solutions is standing still.
- −4ROICROIC has fallen from 17.0% (2021) and 12.7% (2023) to 7.1% (2025) and 7.6% TTM, in line with the cost of capital (WACC 7.8%). ROE is 8.3%.
- −2Adjusted vs reported marginAdjusted operating margin is 13.9% in Q2, but the reported one is 9.6%. Items affecting comparability (restructuring, Americas footprint and the spin-off) are recurring: −DKK 1.0bn in Q2 and −DKK 2.5 to −3.0bn guided for 2026. Reported EPS is DKK 9.88 TTM vs adjusted about DKK 17.
Price
Today's multiples against the company's own history and its peers. · 2 findings−9 of −35
- −5Multiples vs own historyForward P/E 13.8 is above the whole range of 11.7–12.7 in 2021–25, and EV/EBITDA 11.7 is at the top of 7.3–11.9. P/B 2.0 is at the upper end of 1.3–2.2. The stock is up 13% in a year without earnings having grown.
- −4FCF yieldFCF is DKK 2.95bn TTM, and after leases (DKK 0.87bn) only about DKK 2.1bn. At a market cap of DKK 123bn that gives an FCF yield of about 1.7% (P/FCF 41). Even 2025 FCF of DKK 4.8bn gives only about 3.9% before leases.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 3 findings−9 of −35
- −4Cash flow and dividend coverOperating cash flow in H1 2026 was DKK 1.6bn vs DKK 3.8bn a year earlier, because working capital is tied up in the spin-off. The FCF payout ratio is 120%, so the dividend of DKK 7.75 (about DKK 3.5bn a year) is not covered by FCF.
- −3Execution (spin-off)The spin-off of Automotive costs −DKK 2.5 to −3.0bn in 2026 together with the footprint consolidation. It brings negative synergies, and Automotive needs production support in H2 while lines are moved, which weighs on efficiency. The listing still depends on the board and the general meeting.
- −2Macro and demandEurope remains weak, and car demand is weak outside China. Management itself cites geopolitical unrest (Middle East) and tariffs as sources of unpredictability. The Q3 outlook is only 'somewhat stronger' organic sales.
Plus
Only documented strengths. · 1 finding+2 of +15
- +2Pricing powerTariff costs were largely offset in Q2 through prices, and the adjusted operating margin rose to 13.9% from 13.3% on largely unchanged sales (DKK 23.2bn). The improvement comes especially from SIS (aviation and magnetic solutions).
Caveats
What the score does not capture, or where the data is weak.
Automotive (SKF Vertevo) has not yet been spun off. The listing is planned for Q4 2026 and requires shareholder approval at the general meeting, so the figures are still the group's including Automotive. The 1.3 rule on pro forma applies only from the spin-off. The company has not published pro forma figures for Industrial alone, so the score must be recalculated after the listing. The Q3 report is due 21/10/2026, and the capital markets day is 11/11. Cyclical is set to false: Industrial (about 3/4 of sales and most of earnings) follows industrial production, not a price or commodity cycle, while Automotive is cyclical and about to be spun off. PEG is negative regardless of the flag. No insider buying found; there are only grants from option programmes. Peer multiples (Schaeffler, Timken) have not been checked in detail.
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