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This Swedish Company Makes Parts for the Hot EV Sector. Why the Stock Is Still Undervalued.

Sweden’s SKF which makes parts for Tesla, Nio, and other electric-vehicle manufacturers, has been dragged down with others in the sector over fears delays in getting some raw materials will have an impact on manufacturing and demand for products. Shares in the company (ticker: SKF.B.Sweden)—which designs and manufactures bearings, seals, and lubrication systems for the mining, heavy industry, construction, agriculture, and transportation industries—have tumbled 16.1%, to 205 Swedish kronor (about $23), in the past six months. Investors were spooked when rival ball-bearing maker Timken (TKR) in September warned about “unabating customer and supply-chain disruption.”

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