SKF AB-B SHARES (1SKFB.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1SKFB - SE0000108227 - Common Stock
24.38 EUR
+0.53 (+2.22%)
Overall 1SKFB gets a fundamental rating of 5 out of 10. We evaluated 1SKFB against 115 industry peers in the Machinery industry. Both the profitability and the financial health of 1SKFB get a neutral evaluation. Nothing too spectacular is happening here. 1SKFB has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year 1SKFB was profitable.
- In the past year 1SKFB had a positive cash flow from operations.
- 1SKFB had positive earnings in each of the past 5 years.
- 1SKFB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 1SKFB has a better Return On Assets (4.55%) than 62.61% of its industry peers.
- 1SKFB has a Return On Equity of 9.04%. This is comparable to the rest of the industry: 1SKFB outperforms 58.26% of its industry peers.
- The Return On Invested Capital of 1SKFB (7.76%) is better than 62.61% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1SKFB is in line with the industry average of 8.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.55% | ||
| ROE | 9.04% | ||
| ROIC | 7.76% |
ROA(3y)5.06%
ROA(5y)5.45%
ROE(3y)10.53%
ROE(5y)12.18%
ROIC(3y)9.12%
ROIC(5y)9.05%
1.3 Margins
- 1SKFB has a Profit Margin of 5.16%. This is in the better half of the industry: 1SKFB outperforms 60.87% of its industry peers.
- In the last couple of years the Profit Margin of 1SKFB has remained more or less at the same level.
- 1SKFB's Operating Margin of 8.99% is fine compared to the rest of the industry. 1SKFB outperforms 65.22% of its industry peers.
- In the last couple of years the Operating Margin of 1SKFB has remained more or less at the same level.
- 1SKFB has a Gross Margin of 27.28%. This is in the lower half of the industry: 1SKFB underperforms 73.91% of its industry peers.
- 1SKFB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.99% | ||
| PM (TTM) | 5.16% | ||
| GM | 27.28% |
OM growth 3Y-4.47%
OM growth 5Y-0.3%
PM growth 3Y-9.91%
PM growth 5Y0.3%
GM growth 3Y-0.7%
GM growth 5Y2.7%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1SKFB is creating some value.
- The number of shares outstanding for 1SKFB remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, 1SKFB has about the same amount of shares outstanding.
- 1SKFB has a better debt/assets ratio than last year.
2.2 Solvency
- 1SKFB has a debt to FCF ratio of 3.29. This is a good value and a sign of high solvency as 1SKFB would need 3.29 years to pay back of all of its debts.
- 1SKFB has a Debt to FCF ratio of 3.29. This is in the better half of the industry: 1SKFB outperforms 66.96% of its industry peers.
- 1SKFB has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
- 1SKFB has a Debt to Equity ratio (0.27) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 3.29 | ||
| Altman-Z | N/A |
ROIC/WACC1.21
WACC6.42%
2.3 Liquidity
- 1SKFB has a Current Ratio of 2.16. This indicates that 1SKFB is financially healthy and has no problem in meeting its short term obligations.
- 1SKFB has a better Current ratio (2.16) than 80.87% of its industry peers.
- 1SKFB has a Quick Ratio of 1.20. This is a normal value and indicates that 1SKFB is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.20, 1SKFB is in the better half of the industry, outperforming 66.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.16 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 1.64% over the past year.
- The Earnings Per Share has been growing by 8.41% on average over the past years. This is quite good.
- The Revenue has decreased by -4.16% in the past year.
- The Revenue has been growing slightly by 2.79% on average over the past years.
EPS 1Y (TTM)1.64%
EPS 3Y5.93%
EPS 5Y8.41%
EPS Q2Q%-2.22%
Revenue 1Y (TTM)-4.16%
Revenue growth 3Y6.5%
Revenue growth 5Y2.79%
Sales Q2Q%-5.11%
3.2 Future
- 1SKFB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.38% yearly.
- Based on estimates for the next years, 1SKFB will show a small growth in Revenue. The Revenue will grow by 1.90% on average per year.
EPS Next Y-6.69%
EPS Next 2Y2.32%
EPS Next 3Y4.37%
EPS Next 5Y4.38%
Revenue Next Year-4.78%
Revenue Next 2Y-0.93%
Revenue Next 3Y-0.17%
Revenue Next 5Y1.9%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 14.43, the valuation of 1SKFB can be described as correct.
- Based on the Price/Earnings ratio, 1SKFB is valued cheaply inside the industry as 85.22% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.32. 1SKFB is valued slightly cheaper when compared to this.
- 1SKFB is valuated correctly with a Price/Forward Earnings ratio of 13.50.
- 1SKFB's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1SKFB is cheaper than 63.48% of the companies in the same industry.
- 1SKFB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.43 | ||
| Fwd PE | 13.5 |
4.2 Price Multiples
- 61.74% of the companies in the same industry are more expensive than 1SKFB, based on the Enterprise Value to EBITDA ratio.
- 1SKFB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.73 | ||
| EV/EBITDA | 9.42 |
4.3 Compensation for Growth
- The decent profitability rating of 1SKFB may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.72
EPS Next 2Y2.32%
EPS Next 3Y4.37%
5. Dividend
5.1 Amount
- 1SKFB has a Yearly Dividend Yield of 3.21%. Purely for dividend investing, there may be better candidates out there.
- 1SKFB's Dividend Yield is rather good when compared to the industry average which is at 1.50. 1SKFB pays more dividend than 87.83% of the companies in the same industry.
- 1SKFB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.21% |
5.2 History
- The dividend of 1SKFB has a limited annual growth rate of 4.58%.
Dividend Growth(5Y)4.58%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 74.23% of the earnings are spent on dividend by 1SKFB. This is not a sustainable payout ratio.
- The dividend of 1SKFB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP74.23%
EPS Next 2Y2.32%
EPS Next 3Y4.37%
SKF AB-B SHARES / 1SKFB.MI FAQ
What is the ChartMill fundamental rating of SKF AB-B SHARES (1SKFB.MI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to 1SKFB.MI.
Can you provide the valuation status for SKF AB-B SHARES?
ChartMill assigns a valuation rating of 5 / 10 to SKF AB-B SHARES (1SKFB.MI). This can be considered as Fairly Valued.
What is the profitability of 1SKFB stock?
SKF AB-B SHARES (1SKFB.MI) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for 1SKFB stock?
The Price/Earnings (PE) ratio for SKF AB-B SHARES (1SKFB.MI) is 14.43 and the Price/Book (PB) ratio is 2.19.
Can you provide the financial health for 1SKFB stock?
The financial health rating of SKF AB-B SHARES (1SKFB.MI) is 6 / 10.