Industry

Industrials

Sector

Construction & Engineering

Country

Sweden

Company description

SKF (previously known as Svenska Kullagerfabriken AB) is a leading bearing and seals manufacturing company founded in Gothenburg, Sweden in 1907. Today the company has activities in more than 40 industries. The primary industries remain bearings, seals, mechatronics, services and lubrication systems. SKF is the worlds largest bearing manufacturer and employs approximately 50.000 people within 140 production and manufacturing sites. In addition the company runs about 15.000 distribution locations in about 130 countries worldwide.

Market cap.

SEKm 82,947

Share price

SEK 182

Earnings per share (EPS)

SEK 12

Dividend per share (DPS)

SEK 6

Price / earnings

15.2x

Price / sales

1.1x

Price / book value

3.0x

Enterprise value / EBITDA

9.8x

CEO

Alrik Danielson

Chairman of the Board of Directors

Hans Straaberg

CFO

Christian Johansson

Investor relations

Patrik Stenberg

Ticker symbol

SKF

Stock exchange

Nasdaq Stockholm

ISIN code

SE0000108201

Phone

0046 3 1337 1000

Website

skf.com

Address

Hornsgatan 1, 415 50 Gothenburg

Income statements

SEKm 200620072008200920102011201220132014201520162017
Sales 53,10158,55963,36156,22761,02966,21664,57563,59770,97575,99772,58977,938
Other income 000000000000
Total income 53,10158,55963,36156,22761,02966,21664,57563,59770,97575,99772,58977,938
Total expenses -45,298-49,241-53,703-54,370-50,585-54,798-55,398-57,995-60,782-66,171-62,694-67,023
EBITDA 7,8039,3189,6581,85710,44411,4189,1775,60210,1939,8269,89510,915
Depreciation tangible assets -1,476-1,518-1,6071,764-1,644-1,498-1,499-1,557-1,732-2,858-1,813-1,788
Write-downs tangible assets -84-59-43-118-48-4-15-9-100-21-48
EBITA 6,2437,7418,0083,5038,7529,9167,6634,0368,4516,9688,0619,079
Amortisation intangible assets -274-199-299-289-300-288-347-345-6500-534-487
Income from associated companies 738-31-110-16-220000
Earnings before interest and taxes (EBIT) 6,7077,5397,7103,2038,4529,6127,3143,6937,8016,9687,5278,592
Financial income 699681,498453913681211230000
Financial expenses -389-1,369-2,340-951-1,294-1,048-1,027-995-1,133-1,134-788-934
Income from associated companies 000000000000
Earnings before taxes (EBT) 6,3877,1386,8682,2977,5498,9326,4082,8216,6685,8346,7397,658
Taxes -1,955-2,371-2,127-592-2,253-2,708-1,592-1,777-1,918-1,760-2,530-1,898
Profit from continuing operations 4,4324,7674,7411,7055,2966,2244,8161,0444,7504,0744,2095,760
Discontinued operations 000000000000
Minorities -115-172-125-63-158-173-154-132-150-194-224-285
Net profit or loss 4,3174,5954,6161,6425,1386,0514,6629124,6003,8803,9855,475

Cash flow statements

SEKm 200620072008200920102011201220132014201520162017
EBITDA 7,8039,3189,6581,85710,44411,4189,1775,60210,1939,8269,89510,915
Net interest paid -320-401-391-220-197-349-173-297-1,133-1,13457-644
Taxes paid -1,947-2,361-2,783-1,068-1,722-2,858-2,839-2,315-2,090-2,320-1,897-2,353
Investments in working capital -571-1,826-2,2453,076-1,216-2,395657-1,068-2,0161,360-25-900
Other operating cash items 62196-5524,356-1,758-230-6193,393-157-1-880-589
Cash flow from operations (CFFO) 5,0274,9263,6878,0015,5515,5866,2035,3154,7977,7317,1506,429
Capital expenditures (capex) -2,519-2,541
Acquisitions -60-27
Disposals 3,146892
Other investing cash items -2,024-1,911-3,622-2,249-8,389-1,738-2,648-10,657-2,660-1,31500
Cash flow from investing activities -2,024-1,911-3,622-2,249-8,389-1,738-2,648-10,657-2,660-1,315567-1,676
Free cash flow to equity holders (FCFE) 3,0033,015655,752-2,8383,8483,555-5,3422,1376,4167,7174,753
Dividends paid -1,821-2,049-2,277-1,594-1,594-2,277-2,504-2,504-2,578-2,605-2,635-2,618
Share buy-backs 000000000000
New share issues 000000000000
Increase/(decrease) in debt 3,876-6694,265-2,4242,4788872,4795,029705-2,594-1,990-3,141
Other financing cash flows -4,593-2,206-97-81-28-111-581,808-158-1,653-1,821
Cash flow from financing activities (CFFF) 2,055-7,311-218-4,115803-1,418-1362,467-65-5,357-6,278-7,580
Discontinued activities and other 00000000000
Net cash flow / Change in cash position -4,296-1531,637-2,0352,4303,419-2,8752,0721,0591,439-2,827

Balance sheets

SEKm 200620072008200920102011201220132014201520162017
Goodwill 1,5722,2343,1192,7595,9315,9925,72010,71712,23312,07811,1379,995
Other intangible assets 1,0141,2821,5351,2554,2634,1654,0808,3069,9059,4078,4317,365
Total intangible assets 2,5863,5164,6544,01410,19410,1579,80019,02322,13821,48519,56817,360
Fixed tangible assets 11,38811,96014,55613,93312,92213,07613,08614,09515,48215,30315,74615,762
Shares and associated companies 54708087871144540000
Other financial assets 1,1281,3601,2211,3631,2571,4011,0411,083001,3451,187
Deferred tax assets 9489891,3421,6651,1511,2991,8352,0153,3503,1853,8063,633
Other non-current assets 247339655267821031391,8621,607343440
Total fixed assets 16,35118,23421,91821,11425,67826,02625,90936,40942,83241,58040,80838,382
Inventories 9,93911,56315,20411,77112,87914,19112,85613,70015,06614,51915,41817,122
Trade receivables 8,8459,89411,0418,8009,85910,71310,08411,18912,59511,77713,46213,416
Other current assets 3,8613,6945,1444,9003,5903,6193,6644,3243,7053,3574,2805,171
Cash and cash equivalents 7,2422,9462,7934,4302,3954,8258,2445,3697,4418,5009,9397,112
Total current assets 29,88728,09734,18229,90128,72333,34834,84834,58238,80738,15343,09942,821
Total assets 46,23846,33156,10051,01554,40159,37460,75770,99181,63979,73383,90781,203
Equity 18,97317,58718,75017,41118,93521,43621,34020,10023,08924,81526,03428,036
Non-controlling interests (minorities) 6347689398699591,0191,1281,0521,3151,4671,6491,787
Shareholders equity 19,60718,35519,68918,28019,89422,45522,46821,15224,40426,28227,68329,823
Pension liabilities 4,7314,8406,3567,0207,0938,6349,8819,90213,97813,06213,94512,309
Deferred tax liabilities 1,2431,3331,2107541,3099384812,2071,7171,3731,3801,100
Long-term provisions 1,4641,4841,5621,5211,5601,4771,2241,226001,4101,551
Convertible debt 000000000000
Long-term debt 7,0077,30112,8098,98710,85012,50012,73019,69824,07722,38322,03115,790
Other long-term liabilities 141186176786212570651,3611,30280111
Total long-term liabilities 14,58615,14422,11318,36020,87423,67424,38633,09841,13338,12038,84630,861
Short-term debt 4,5294,9048992,0181,3251,1132,9451,6462,0281,4421,6192,718
Trade payables 6207374,8413,9894,4764,6984,1894,7405,9385,6717,1007,899
Other current liabilities 6,8967,1918,5588,3687,8327,4346,76910,3558,1368,2188,6599,902
Total current liabilities 12,04512,83214,29814,37513,63313,24513,90316,74116,10215,33117,37820,519
Total equity and liabilities 46,23846,33156,10051,01554,40159,37460,75770,99181,63979,73383,90781,203

Growth rates

[%] 200620072008200920102011201220132014201520162017
Sales growth 0.0%10.0%8.0%-11.0%9.0%9.0%-2.0%-2.0%12.0%7.0%-4.0%7.0%
EBITDA growth 0.0%19.0%4.0%-81.0%462.0%9.0%-20.0%-39.0%82.0%-4.0%1.0%10.0%
EBITA growth 0.0%24.0%3.0%-56.0%150.0%13.0%-23.0%-47.0%109.0%-18.0%16.0%13.0%
EBIT growth 0.0%12.0%2.0%-58.0%164.0%14.0%-24.0%-50.0%111.0%-11.0%8.0%14.0%
EBT growth 0.0%12.0%-4.0%-67.0%229.0%18.0%-28.0%-56.0%136.0%-13.0%16.0%14.0%
Earnings growth 0.0%6.0%0.0%-64.0%213.0%18.0%-23.0%-80.0%404.0%-16.0%3.0%37.0%

Margins

[%] 200620072008200920102011201220132014201520162017
EBITDA-margin 15.0%16.0%15.0%3.0%17.0%17.0%14.0%9.0%14.0%13.0%14.0%14.0%
EBITA-margin 12.0%13.0%13.0%6.0%14.0%15.0%12.0%6.0%12.0%9.0%11.0%12.0%
EBIT-margin 13.0%13.0%12.0%6.0%14.0%15.0%11.0%6.0%11.0%9.0%10.0%11.0%
EBT-margin 12.0%12.0%11.0%4.0%12.0%13.0%10.0%4.0%9.0%8.0%9.0%10.0%
Earnings-margin 8.0%8.0%7.0%3.0%8.0%9.0%7.0%1.0%6.0%5.0%5.0%7.0%

Other key figures

SEKm 200620072008200920102011201220132014201520162017
Tax rate 31.0%33.0%31.0%26.0%30.0%30.0%25.0%63.0%29.0%30.0%38.0%25.0%
Net working capital balance (NWC) 15,12917,22317,99013,11414,02016,39115,64614,11817,29215,76417,40117,908
Net interest bearing debt (NIBD) 9,02514,09917,27113,59516,87317,42217,31225,87732,64228,38727,65623,705
Invested capital (including goodwill) 28,63232,45436,96031,87536,76739,87739,78047,02957,04654,66955,33953,528
Invested capital (excluding goodwill) 27,06030,22033,84129,11630,83633,88534,06036,31244,81342,59144,20243,533
Enterprise value (EV) 66,61463,96052,39969,876104,11483,70491,642102,691107,70390,887103,980106,652

Share data

200620072008200920102011201220132014201520162017
Shares outstanding, millions (excl. treasury) 455455455455455455455455455455455455
Market capitalisation (SEKm) 57,58949,86135,12856,28187,24166,28274,33076,81475,06162,50076,32482,947
Market capitalisation (SEKm) 57,58949,86135,12856,28187,24166,28274,33076,81475,06162,50076,32482,947
Share price (SEK) 126.3109.576.3123.6191.5145.2163.6168.6164.2137.9167.8181.7
Earnings per share (EPS), (SEK) 9.510.110.13.611.313.310.22.010.18.58.812.0
Dividend per share (DPS), (SEK) 4.55.03.53.55.05.55.55.55.55.55.55.5

Price multiples

200620072008200920102011201220132014201520162017
Price/Earnings (P/E) 13.3x10.9x7.6x34.3x17.0x11.0x15.9x84.2x16.3x16.1x19.2x15.2x
Price/Sales (P/S) 1.1x0.9x0.6x1.0x1.4x1.0x1.2x1.2x1.1x0.8x1.1x1.1x
Price/Book value (P/B) 3.0x2.8x1.9x3.2x4.6x3.1x3.5x3.8x3.3x2.5x2.9x3.0x

Enterprise value (EV) multiples

200620072008200920102011201220132014201520162017
Enterprise value/Sales (EV/Sales) 1.3x1.1x0.8x1.2x1.7x1.3x1.4x1.6x1.5x1.2x1.4x1.4x
Enterprise value/EBITDA (EV/EBITDA) 8.5x6.9x5.4x37.6x10.0x7.3x10.0x18.3x10.6x9.3x10.5x9.8x
Enterprise value/EBITA (EV/EBITA) 10.7x8.3x6.5x20.0x11.9x8.4x12.0x25.4x12.7x13.0x12.9x11.8x
Enterprise value/EBIT (EV/EBIT) 9.9x8.5x6.8x21.8x12.3x8.7x12.5x27.8x13.8x13.0x13.8x12.4x