Essity Aktiebolag (SE:ESSITY.A)
:ESSITY.A
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Essity Aktiebolag
(ESSITY.A)
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Rating:67Neutral
Price Target:
kr270.00
▲(3.45% Upside)
Action:ReiteratedDate:04/24/26
The score is driven primarily by solid financial performance (healthy margins, improving leverage) and a constructive earnings update (cash generation, buyback, and strategic execution), partially offset by weak/flat multi-year revenue trends and uneven cash-flow conversion. Technicals are neutral-to-soft with negative MACD and the stock below key medium-term averages, while valuation is supportive with a reasonable P/E and a ~3.5% dividend yield.
Positive Factors
Improved Profitability
Sustained margin improvement to TTM gross ~33%, operating ~13% and net ~9% signals durable operating leverage across tissue and personal care. Higher structural margins enhance cash-generation capacity, support reinvestment and shareholder returns and provide a buffer versus cyclical cost swings.
Negative Factors
Weak Multi-Year Revenue Trend
A multi-year flat-to-declining top line constrains organic growth optionality and means the company often must rely on price/mix, cost cuts or M&A to grow sales. Sluggish revenue momentum limits sustainable operating leverage and increases dependence on structural improvements to re-accelerate growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Profitability
Sustained margin improvement to TTM gross ~33%, operating ~13% and net ~9% signals durable operating leverage across tissue and personal care. Higher structural margins enhance cash-generation capacity, support reinvestment and shareholder returns and provide a buffer versus cyclical cost swings.
Read all positive factors
Essity Aktiebolag (ESSITY.A) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr168.59B
Dividend Yield3.14%
Average Volume (3M)25.39K
Price to Earnings (P/E)14.3
Beta (1Y)0.33
Revenue Growth-6.16%
EPS Growth0.85%
CountrySE
Employees36,000
SectorGeneral
Sector StrengthN/A
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)4.23
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)19.03
Revenue Forecast (FY)kr139.36B
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 makes money primarily by selling branded and private-label hygiene and health products to a broad set of customers across retail, e-commerce, healthcare, and professional/industrial channels. A major revenue stream comes from consumer tissu...
Essity Aktiebolag Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 16, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and financial picture: strong cash generation, margin improvement (+40 bps), volume growth in several priority areas (Personal Care +3.5%, Professional Hygiene ~+1.9%), market share gains in branded portfolios, completion of a strategic Feminine Care acquisition and a SEK 3bn share buyback program. Offsetting factors include a reported sales decline (-5.1%) driven by FX, European Consumer Tissue weakness, initial margin drag from the acquisition (~10 bps group / -70 bps Personal Care), and a clear risk of higher input costs (pulp, energy, oil) and SG&A inflation in coming quarters. On balance, the positive achievements (cash, margins, market share, M&A, product innovation and sustainability execution) outweigh the near-term headwinds and uncertainties.Positive Updates
Reported margin expansion
EBITDA margin improved ~40 basis points quarter-on-quarter, driven by gross profit expansion (~60 bps) from lower COGS (partly FX-related) and SEK ~130m of COGS savings in Q1.
Negative Updates
Reported sales decline driven by FX
Reported sales declined -5.1% quarter-on-quarter due primarily to currency translation from a stronger Swedish krona; on a constant-currency basis sales rose ~+1.5%.
Read all updates
Q1-2026 Updates
Positive
Negative
Reported margin expansion
EBITDA margin improved ~40 basis points quarter-on-quarter, driven by gross profit expansion (~60 bps) from lower COGS (partly FX-related) and SEK ~130m of COGS savings in Q1.
Read all positive updates
Company Guidance
The management gave directional (not precise) guidance that Q2 will see higher COGS versus Q2 2025 and higher SG&A (driven by salary inflation and IT) with only small cost‑saving offsets in Q2, while they will compensate cost increases over time with selective price actions; they reiterated the long‑term EBITDA margin target of >15% but declined to give short‑term margin guidance. Key metrics and context provided: reported Q1 sales -5.1% (FX‑driven) but +1.5% in constant currency (SEK +0.5bn), volume growth +1.1% (Personal Care +3.5%, Professional Hygiene +1.9%, Consumer Tissue -0.5%), margin improvement ~40 bps (gross profit +60 bps), SEK ~130m COGS savings in Q1 and full‑year COGS‑savings ambition of roughly SEK 500m–1,000m, operating cash flow SEK 4.4bn (cash flow after finance and taxes SEK 3.0bn), net debt SEK 24.5bn (net debt/EBITDA ~0.96–1.0), a new SEK 3bn share buyback program (start 11 May 2026 to AGM 2027), energy hedging ~60% for the remainder of the year, no broad raw‑material hedges (oil‑based inputs typically hit P&L with a ~4–5 month lag), and a ~10 bp negative group margin impact from the recently closed North American Feminine Care acquisition (larger ~70 bp impact on Personal Care) that they expect to improve over the next 12 months.Essity Aktiebolag Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
69
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 136.69B | 138.49B | 145.55B | 147.15B | 156.17B | 121.87B |
| Gross Profit | 45.77B | 46.12B | 47.13B | 45.13B | 37.23B | 35.09B |
| EBITDA | 25.64B | 25.74B | 26.14B | 20.90B | 15.44B | 20.45B |
| Net Income | 12.47B | 12.66B | 20.89B | 9.55B | 5.57B | 8.62B |
Balance Sheet | ||||||
| Total Assets | 180.86B | 167.12B | 185.28B | 202.99B | 210.60B | 175.05B |
| Cash, Cash Equivalents and Short-Term Investments | 12.12B | 9.75B | 15.62B | 5.19B | 4.50B | 4.09B |
| Total Debt | 42.31B | 38.63B | 43.78B | 60.98B | 71.52B | 56.83B |
| Total Liabilities | 92.70B | 81.08B | 96.54B | 123.59B | 134.04B | 106.54B |
| Stockholders Equity | 87.72B | 85.63B | 88.31B | 70.85B | 67.35B | 59.87B |
Cash Flow | ||||||
| Free Cash Flow | 9.57B | 8.37B | 9.40B | 14.68B | 5.92B | 7.31B |
| Operating Cash Flow | 16.78B | 15.46B | 16.80B | 21.57B | 12.87B | 14.67B |
| Investing Cash Flow | -8.91B | -3.22B | 9.41B | -7.11B | -14.50B | -12.13B |
| Financing Cash Flow | -6.86B | -14.40B | -22.34B | -11.55B | 1.81B | -3.81B |
Essity Aktiebolag Technical Analysis
Positive
261.00
Price Trends
257.15
Negative
255.16
Negative
249.98
Positive
Market Momentum
-1.40
Negative
55.79
Neutral
65.16
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 above the 20-day moving average (MA) of 244.62, above the 50-day MA of 257.15, and above the 200-day MA of 249.98, indicating a neutral trend. The MACD of -1.40 indicates Negative momentum. The RSI at 55.79 is Neutral, neither overbought nor oversold. The STOCH value of 65.16 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | kr168.59B | 14.34 | 14.26% | 3.13% | -6.16% | 0.85% | |
67 Neutral | kr168.59B | 14.34 | ― | 3.14% | -6.16% | 0.85% | |
57 Neutral | kr3.99B | 33.11 | 9.34% | 4.83% | -1.56% | 16.94% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
SE:ESSITY.A
Essity Aktiebolag
244.50
-24.31
-9.04%
SE:ESSITY.B
Essity AB
244.50
-23.67
-8.83%
SE:DUNI
Duni AB
85.00
-8.01
-8.61%
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.