AB SKF (OM:SKF B) reported its second quarter 2026 earnings on 17 July, with net income and earnings per share higher than a year earlier, while quarterly sales remained close to prior year levels.
See our latest analysis for AB SKF.
AB SKF's 1 day share price return of 1.25%, 7 day return of 3.43% and 90 day return of 13.58% suggest momentum has been building into and after this earnings release. The 1 year total shareholder return of 13.03% and 3 year total shareholder return of 42.13% put the latest move into a longer term context.
If you are looking beyond AB SKF after this earnings update, this could be a moment to scan the market using our robotics and automation stock ideas through the 34 robotics and automation stocks.
The latest move in AB SKF after stronger earnings has shifted the balance between recent gains and what is already priced in. Do the current valuation signals still leave enough upside for new buyers, or is the edge fading?
Most Popular Narrative: 60% Undervalued
At a last close of SEK259.20 versus a narrative fair value of SEK260.76, AB SKF is framed as materially discounted when the updated cash flow story is modelled out.
The ongoing automation and digitalization of manufacturing, along with AB SKF's continued investments in automation, manufacturing regionalization, and rightsizing are expected to enhance operational efficiency and support sustained improvements in operating and EBITDA margins over the next several years.
Read the complete narrative. Read the complete narrative.
Want to understand why this margin focused story supports a higher valuation for AB SKF? The narrative focuses on gradually improving profitability, steady top line growth and a future earnings multiple that assumes more efficient operations without stretching today's assumptions.
Result: Fair Value of SEK260.76 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, AB SKF still faces key risks, including execution around the automotive separation and ongoing currency headwinds that can pressure reported earnings and cash flows.
Find out about the key risks to this AB SKF narrative.
Another View On AB SKF’s Valuation
The narrative fair value for AB SKF points to only a small undervaluation at around SEK260.76. Our DCF model paints a very different picture, with a future cash flow value of SEK460.49. That is a large gap. Which story do you think better reflects AB SKF’s risks and execution hurdles?
Look into how the SWS DCF model arrives at its fair value.
Next Steps
With sentiment on AB SKF split between opportunity and caution, this is a good moment to review the data and decide where you stand. To weigh both sides properly, start by checking the 2 key rewards and 1 important warning sign.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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