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Essity Aktiebolag
(ESSITY.A)
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Rating:72Outperform
Price Target:
kr302.00
▲(15.71% Upside)
Action:Upgraded
Date:07/17/26
Overall score is driven mainly by improved underlying profitability and a stronger leverage profile, supported by reasonable valuation (moderate P/E and a ~3.2% dividend yield). The score is tempered by uneven revenue/FCF quality, mixed near-term technical signals, and earnings-call guidance pointing to near-term cost inflation and segment-specific weakness despite ongoing mitigation actions.
Positive Factors
Improved margins and profitability
Sustained margin expansion since 2022 reflects structural improvements in pricing, procurement and manufacturing efficiency. Higher gross and operating margins support recurring cash flow, resilience to cost swings and a stronger ability to fund investment, dividends and buybacks over coming quarters.
Negative Factors
Choppy and contracting revenue trend
A multi-year revenue contraction and inconsistent top-line growth undermine scale economics and make margin improvements more reliant on cost cuts. If organic growth does not stabilize, the company may face pressure to pursue price increases or acquisitions to meet growth targets.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved margins and profitability
Sustained margin expansion since 2022 reflects structural improvements in pricing, procurement and manufacturing efficiency. Higher gross and operating margins support recurring cash flow, resilience to cost swings and a stronger ability to fund investment, dividends and buybacks over coming quarters.
Read all positive factors
Essity Aktiebolag (ESSITY.A) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr184.37B
Dividend Yield3.14%
Average Volume (3M)25.39K
Price to Earnings (P/E)15.6
Beta (1Y)0.32
Revenue Growth-3.96%
EPS Growth0.20%
CountrySE
Employees36,000
SectorGeneral
Sector StrengthN/A
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)17.72
Shares Outstanding56,200,657
10 Day Avg. Volume13,063
30 Day Avg. Volume25,387
Financial Highlights & Ratios
PEG Ratio-0.38
Price to Book (P/B)2.13
Price to Sales (P/S)1.32
P/FCF Ratio21.83
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)19
Revenue Forecast (FY)kr140.45B
Essity Aktiebolag Business Overview & Revenue Model
Company Description
Essity AB (publ) is a global enterprise based in Stockholm, Sweden, established in 1849, specializing in the creation, manufacturing, and distribution of hygiene and health products and related services. Its diverse portfolio is structured across ...
How the Company Makes Money
Essity makes money primarily by selling hygiene and health products through a mix of consumer (B2C) and professional (B2B) channels. (1) Consumer product sales: Revenue is generated from the sale of branded and private-label tissue and personal ca...
Essity Aktiebolag Earnings Call Summary
Earnings Call Date:Jul 16, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call highlighted several positive operational achievements: volume-driven sales growth across multiple business areas, ongoing product and digital innovation (including AI), delivery of cost-savings, strong cash flow and a robust balance sheet. However, the company faces near-term headwinds from Consumer Tissue softness, Personal Care margin pressure from the recent acquisition, rising input costs (notably oil-based materials, energy and pulp) and some short-term SG&A phasing. Management outlined concrete mitigation actions (price increases, integration efforts, cost-savings) and reiterated strategic initiatives (innovation, market investment, strategic review of Consumer Tissue). On balance the positives—broad volume momentum, margin resilience in key segments, executed cost savings and strong cash metrics—outweigh the lowlights, though risks remain in the near term.Positive Updates
Net Sales Increase and Organic Growth
Net sales rose by about SEK 1 billion year-over-year; organic sales growth of 0.3% with an additional 1.7% from the North American feminine acquisition.
Negative Updates
Consumer Tissue Weakness
Consumer Tissue experienced a tough quarter with lower volumes (-2.7%) and lower pricing (spillover from 2025). Management is implementing price increases to offset COGS inflation, but short-term softness persisted.
Read all updates
Q2-2026 Updates
Positive
Negative
Net Sales Increase and Organic Growth
Net sales rose by about SEK 1 billion year-over-year; organic sales growth of 0.3% with an additional 1.7% from the North American feminine acquisition.
Read all positive updates
Company Guidance
Guidance summary: For Q3 vs Q3 2025 Essity expects significantly higher COGS (notably from oil‑based materials/superabsorbents and higher energy) and somewhat higher SG&A including A&P, with a Q3 hedge rate for electricity and gas of roughly 65%; management is already implementing price increases (some becoming visible in P&L from Q3) though lags vary (1–2 quarters in consumer tissue, longer in regulated healthcare). Recent program metrics and targets: the SG&A/efficiency program delivered about SEK 100m benefit in Q2 (COGS savings ~SEK 160m in the quarter), the company targets SEK ≥1,000m run‑rate savings by year‑end, and expects larger SG&A savings in Q3–Q4. Q2 financials underpinning the guidance: net sales rose ~SEK 1bn YoY (organic +0.3%, acquisition +1.7%), total volumes +1.4% (Health & Medical +2.5%, Personal Care +4.3% with feminine/incontinence ~6–7%, Professional Hygiene +3%, Baby ≈‑3%, Consumer Tissue ‑2.7%), price/mix ‑1.1% (price ‑1.3%), gross profit margin down ~70bps and overall margin down ~30bps, operating cash flow SEK 2.8bn, net debt/EBITDA ~1.1, and 2.1m shares repurchased (~SEK 550m) since May 12. The company will continue to offset COGS inflation with selective price rises while protecting profitable volume growth and aims to grow organically >3% with a profit margin ≥15%.Essity Aktiebolag Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 137.57B | 138.49B | 145.55B | 147.15B | 156.17B | 121.87B |
| Gross Profit | 45.82B | 46.12B | 47.13B | 45.13B | 37.23B | 35.09B |
| EBITDA | 25.73B | 25.74B | 26.14B | 20.90B | 15.44B | 20.45B |
| Net Income | 12.12B | 12.66B | 20.89B | 9.55B | 5.57B | 8.62B |
Balance Sheet | ||||||
| Total Assets | 181.53B | 167.12B | 185.28B | 202.99B | 210.60B | 175.05B |
| Cash, Cash Equivalents and Short-Term Investments | 6.87B | 9.75B | 15.62B | 5.19B | 4.50B | 4.09B |
| Total Debt | 42.61B | 38.63B | 43.78B | 60.98B | 71.52B | 56.83B |
| Total Liabilities | 88.36B | 81.08B | 96.54B | 123.59B | 134.04B | 106.54B |
| Stockholders Equity | 92.76B | 85.63B | 88.31B | 70.85B | 67.35B | 59.87B |
Cash Flow | ||||||
| Free Cash Flow | 10.87B | 8.37B | 9.40B | 14.68B | 5.92B | 7.31B |
| Operating Cash Flow | 17.88B | 15.46B | 16.80B | 21.57B | 12.87B | 14.67B |
| Investing Cash Flow | -8.81B | -3.22B | 9.41B | -7.11B | -14.50B | -12.13B |
| Financing Cash Flow | -7.59B | -14.40B | -22.34B | -11.55B | 1.81B | -3.81B |
Essity Aktiebolag Technical Analysis
Positive
261.00
Price Trends
264.77
Positive
257.97
Positive
255.77
Positive
Market Momentum
3.91
Positive
61.22
Neutral
55.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ESSITY.A, the sentiment is Positive. The current price of 261 is below the 20-day moving average (MA) of 276.68, below the 50-day MA of 264.77, and above the 200-day MA of 255.77, indicating a bullish trend. The MACD of 3.91 indicates Positive momentum. The RSI at 61.22 is Neutral, neither overbought nor oversold. The STOCH value of 55.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:ESSITY.A.
Essity Aktiebolag Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | kr184.37B | 15.56 | ― | 3.14% | -3.96% | 0.20% | |
67 Neutral | kr184.37B | 15.56 | 14.26% | 3.13% | -3.96% | 0.20% | |
57 Neutral | kr3.64B | 17.87 | 9.34% | 4.83% | -2.46% | -7.73% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
SE:ESSITY.A
Essity Aktiebolag
282.00
46.49
19.74%
SE:ESSITY.B
Essity AB
282.80
46.76
19.81%
SE:DUNI
Duni AB
77.00
-10.46
-11.96%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.