Essity Aktiebolag (SE:ESSITY.A)
:ESSITY.A
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Essity Aktiebolag
(ESSITY.A)
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Rating:65Neutral
Price Target:
kr309.00
▲(18.39% Upside)
Action:UpgradedDate:01/26/26
The score is driven primarily by improved profitability and a notably stronger balance sheet, supported by reasonable valuation and a constructive (but not risk-free) earnings outlook. These positives are tempered by weak technical momentum and ongoing questions around revenue contraction, earnings volatility, and near-term volume/price tradeoffs.
Positive Factors
Balance sheet strength
Reported zero debt in 2025 and sharply reduced leverage materially increase financial flexibility. This durable strength lowers refinancing risk, supports continued buybacks/dividend policy, funds the SEK 8.0–8.5bn CapEx plan and gives capacity for selective M&A or reinvestment without stressing liquidity.
Negative Factors
Persistent revenue contraction
Multi-year revenue decline erodes operating leverage and raises reliance on cost savings and deals to offset organic weakness. Persistent top-line pressure makes sustainable margin and earnings growth harder, increasing execution dependence on pricing, A&P reinvestment and M&A to restore volume.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Reported zero debt in 2025 and sharply reduced leverage materially increase financial flexibility. This durable strength lowers refinancing risk, supports continued buybacks/dividend policy, funds the SEK 8.0–8.5bn CapEx plan and gives capacity for selective M&A or reinvestment without stressing liquidity.
Read all positive factors
Essity Aktiebolag (ESSITY.A) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr168.78B
Dividend Yield3.14%
Average Volume (3M)25.39K
Price to Earnings (P/E)14.4
Beta (1Y)0.34
Revenue Growth-1.91%
EPS Growth-40.37%
CountrySE
Employees36,000
SectorGeneral
Sector StrengthN/A
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)4.69
Shares Outstanding57,200,657
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 Target
kr232.50Price Target Upside-10.92% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)19.56
Revenue Forecast (FY)kr137.32B
Essity Aktiebolag Business Overview & Revenue Model
Company Description
Essity AB (publ) develops, produces, and sells hygiene and health products and services worldwide. It offers health and medical products, including incontinence products, wound care, compression therapy, orthopedics, skincare products, and digital...
How the Company Makes Money
Essity generates revenue primarily through the sale of its diverse product lines in personal care, consumer tissue, and professional hygiene. The company operates under well-known brands such as Tena, Libero, and Tempo, which contribute significan...
Essity Aktiebolag Earnings Call Summary
Earnings Call Date:Jan 22, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call presented multiple clear strengths: year‑end margin expansion, record-level product superiority and market share gains across many categories, continued Medical segment momentum, a strategic U.S. acquisition, strong cash generation, and a healthy balance sheet (net debt/EBITDA ~1.0). Offsetting these positives were near-term commercial challenges: a negative organic sales development in Q4 driven by price/mix decisions and volume weaknesses in Baby, Consumer Tissue and Professional Hygiene, some one-off rebate impacts in Latin America, lost private‑label contracts, and upfront restructuring costs tied to the cost‑save program. Management stressed a deliberate plan to reinvest savings into A&P and selective price adjustments to restore volume growth, but acknowledged short-term margin phasing risk. On balance, the positive operational and financial momentum, strategic moves and strong balance sheet outweigh the near-term trading headwinds and execution risks.Positive Updates
Full-Year Organic Sales Growth and EPS (2025)
Full-year organic sales growth of 0.9% for 2025; reported EPS roughly +1% nominally vs 2024 and ~+8% in comparable currencies, consistent with long-term growth (~6%).
Negative Updates
Negative Q4 Organic Sales Development and Price/Mix Pressure
Q4 reported negative organic sales growth driven by price declines (management cited selective price reductions to respond to lower input costs and competitive pressure); CFO noted price/mix headwinds in the quarter contributing to the negative development.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Organic Sales Growth and EPS (2025)
Full-year organic sales growth of 0.9% for 2025; reported EPS roughly +1% nominally vs 2024 and ~+8% in comparable currencies, consistent with long-term growth (~6%).
Read all positive updates
Company Guidance
Guidance and targets from the call: for Q1 2026 management expects COGS to be slightly lower (partly from savings and positive FX in raw materials) and SG&A to be slightly higher versus Q1 2025 (driven by increased A&P); for the full year 2026 they guide CapEx of SEK 8.0–8.5 billion, corporate costs of ~SEK 1.3 billion and a structural tax rate of 25–26%. They reiterated the COGS savings range of SEK 500 million–SEK 1 billion (having already realized just above SEK 500 million in the quarter), target a SEK 1 billion SG&A run‑rate saving towards end‑2026, expect restructuring costs of ~SEK 1.1 billion, and plan to reinvest the majority of savings to fuel growth; balance sheet metrics include net debt/EBITDA ~1.0, and the Board will propose a dividend of SEK 8.75 (up SEK 0.50, +6%); the SEK 3.0 billion buyback program is ~80% executed (SEK 2.4 billion; 9.2 million shares repurchased).Essity Aktiebolag Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 138.49B | 145.55B | 147.15B | 156.17B | 121.87B |
| Gross Profit | 46.12B | 47.13B | 45.13B | 37.23B | 35.09B |
| EBITDA | 25.74B | 26.14B | 20.90B | 15.44B | 20.45B |
| Net Income | 12.66B | 20.89B | 9.55B | 5.57B | 8.62B |
Balance Sheet | |||||
| Total Assets | 167.12B | 185.28B | 202.99B | 210.60B | 175.05B |
| Cash, Cash Equivalents and Short-Term Investments | 9.75B | 15.62B | 5.19B | 4.50B | 4.09B |
| Total Debt | 38.63B | 43.78B | 60.98B | 71.52B | 56.83B |
| Total Liabilities | 81.08B | 96.54B | 123.59B | 134.04B | 106.54B |
| Stockholders Equity | 85.63B | 88.31B | 70.85B | 67.35B | 59.87B |
Cash Flow | |||||
| Free Cash Flow | 8.37B | 9.40B | 14.68B | 5.92B | 7.31B |
| Operating Cash Flow | 15.46B | 16.80B | 21.57B | 12.87B | 14.67B |
| Investing Cash Flow | -3.22B | 9.41B | -7.11B | -14.50B | -12.13B |
| Financing Cash Flow | -14.40B | -22.34B | -11.55B | 1.81B | -3.81B |
Essity Aktiebolag Technical Analysis
Negative
261.00
Price Trends
257.84
Negative
255.71
Negative
250.14
Negative
Market Momentum
-4.99
Negative
39.26
Neutral
30.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ESSITY.A, the sentiment is Negative. The current price of 261 is above the 20-day moving average (MA) of 247.14, above the 50-day MA of 257.84, and above the 200-day MA of 250.14, indicating a bearish trend. The MACD of -4.99 indicates Negative momentum. The RSI at 39.26 is Neutral, neither overbought nor oversold. The STOCH value of 30.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | kr168.78B | 14.44 | 14.26% | 3.13% | -1.91% | -40.37% | |
65 Neutral | kr168.78B | 14.44 | ― | 3.14% | -1.91% | -40.37% | |
62 Neutral | kr4.58B | 15.85 | 9.34% | 4.83% | 3.79% | 39.15% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
SE:ESSITY.A
Essity Aktiebolag
244.50
-19.00
-7.21%
SE:ESSITY.B
Essity AB
244.80
-18.35
-6.97%
SE:DUNI
Duni AB
97.40
7.63
8.50%
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.