Essity AB (ESSITY.B) AI Stock Analysis

• Market Cap: kr190.09B
• Dividend Yield: 2.69%
• Average Volume (3M): 1.37M
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.15
• Revenue Growth: -8.34%
• EPS Growth: -31.13%
• Country: SE
• Employees: 36,000
• Sector: Consumer Defensive
• Sector Strength: 64
• Industry: Household & Personal Products
• EPS (TTM): 4.43
• Shares Outstanding: 634,080,800
• 10 Day Avg. Volume: 1,132,932
• 30 Day Avg. Volume: 1,372,372
• PEG Ratio: -0.39
• Price to Book (P/B): 2.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.73
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: kr298.16
• Price Target Upside: 8.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 75 Outperform
• Price Target: kr312.00 ▲(13.74%Upside)

Essity AB holds a solid overall stock score, driven primarily by strong financial performance and effective earnings management. While the company faces some operational challenges, its robust cash flow and valuation metrics provide a stable outlook. Technical analysis shows neutrality, emphasizing the need for strategic initiatives to overcome market pressures in specific segments.

Essity AB Business Overview & Revenue Model

Company Description

Essity AB is a global hygiene and health company headquartered in Sweden. It operates in the consumer goods sector, primarily focusing on the development, production, and distribution of personal care products, consumer tissue, and professional hygiene solutions. Essity's core products include incontinence products, baby diapers, feminine care products, and a wide range of tissue products for both consumer and professional use. The company is committed to enhancing well-being through leading hygiene and health solutions.

How the Company Makes Money

Essity AB generates revenue through the sale of its diverse range of hygiene and health products. The company's revenue streams are divided into several key categories: Personal Care, Consumer Tissue, and Professional Hygiene. The Personal Care segment includes products such as incontinence products, feminine care, and baby diapers, which are distributed through retail outlets and healthcare providers. The Consumer Tissue segment comprises the sale of toilet paper, household towels, handkerchiefs, and facial tissues to consumers via various retail channels. The Professional Hygiene segment serves businesses and institutions with products like dispensers, tissue, soap, and hand sanitizers, primarily through a business-to-business model. Essity also maintains strategic partnerships and alliances to expand its market reach and enhance its product offerings, contributing significantly to its earnings.

Essity AB Financial Statement Overview

Summary

Essity AB demonstrates strong financial health with robust profitability and efficient asset management. The company has solid margins, a balanced leverage profile, and effective cash management. However, attention to revenue growth and managing debt levels is crucial for sustaining future growth and stability.

Income Statement

Essity AB has shown strong financial performance with significant improvements in profitability margins. The gross profit margin stands at a healthy 32.37%, supported by a robust net profit margin of 14.35%. The EBIT margin of 12.57% and EBITDA margin of 17.96% further indicate efficient operational management. However, a slight decline in revenue growth could be a concern for future expansion.

Balance Sheet

The balance sheet reflects a stable financial structure with a debt-to-equity ratio of 0.50, indicating moderate leverage. The return on equity is impressive at 23.65%, showcasing effective utilization of shareholders' equity. The equity ratio of 47.66% demonstrates strong financial resilience. However, the company should monitor its debt levels to ensure long-term financial stability.

Cash Flow

Essity AB maintains strong cash flow management, with a solid operating cash flow to net income ratio of 0.80 and a free cash flow to net income ratio of 0.45. Despite a decrease in free cash flow growth, the company sustains sufficient cash generation to support operations and investments. Continued focus on cash flow optimization can enhance financial flexibility.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
145.67B	145.55B	147.15B	156.17B	121.87B	121.75B
	Gross Profit
47.14B	47.13B	45.13B	37.23B	35.09B	39.44B
	EBIT
18.59B	18.30B	17.75B	9.48B	13.20B	16.76B
	EBITDA
26.20B	26.14B	20.90B	15.44B	20.45B	24.89B
	Net Income Common Stockholders
12.57B	20.89B	9.55B	5.57B	8.62B	10.23B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
12.66B	15.62B	5.19B	4.50B	4.09B	5.15B
	Total Assets
171.24B	185.28B	202.99B	210.60B	175.05B	154.65B
	Total Debt
0.00	43.78B	60.98B	66.58B	56.83B	45.88B
	Net Debt
-9.77B	32.81B	55.83B	62.29B	52.93B	40.90B
	Total Liabilities
91.54B	96.54B	123.59B	134.04B	106.54B	91.30B
	Stockholders Equity
79.29B	88.31B	70.85B	67.35B	59.87B	54.35B
Cash Flow		Free Cash Flow
8.88B	9.40B	14.68B	5.92B	7.31B	11.21B
	Operating Cash Flow
16.04B	16.80B	21.57B	12.87B	14.67B	17.82B
	Investing Cash Flow
-4.87B	9.41B	-7.11B	-14.50B	-12.13B	-7.09B
	Financing Cash Flow
-12.55B	-22.34B	-11.55B	1.81B	-3.81B	-8.38B

Essity AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 274.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ESSITY.B, the sentiment is Negative. The current price of 274.3 is below the 20-day moving average (MA) of 277.77, below the 50-day MA of 278.96, and below the 200-day MA of 288.89, indicating a bearish trend. The MACD of -0.49 indicates Positive momentum. The RSI at 43.65 is Neutral, neither overbought nor oversold. The STOCH value of 13.93 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:ESSITY.B.

Essity AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLA.B	77 Outperform	$9.93B	15.76	11.12%	2.79%	1.61%	30.09%
ESSITY.B	75 Outperform	kr190.09B	15.22	15.22%	2.69%	-8.34%	-31.13%
AMBEA	72 Outperform	kr8.89B	15.17	12.49%	1.92%	5.86%	33.17%
ESSITY.A	71 Outperform	kr190.09B	15.20		3.01%	-8.34%	-31.13%
DUNI	71 Outperform	kr4.65B	19.23	6.76%	4.87%	1.68%	-38.11%
AXFO	66 Neutral	kr59.46B	28.52	36.99%	3.18%	3.33%	-14.82%
Sector *	65 Neutral	$8.88B	15.01	4.76%	203.76%	3.54%	-2.49%

Essity AB Corporate Events

Essity Executes Share Buyback to Optimize Capital Allocation

Essity has repurchased 197,115 Class B shares as part of its SEK 3bn buyback program, which aims to enhance shareholder value and optimize capital allocation. The repurchase, conducted on Nasdaq Stockholm, is financed through cash flow from operations and is intended to be a recurring strategy, aligning with EU regulations and supporting the company’s financial strategy.

The most recent analyst rating on ($SE:ESSITY.B) stock is a Buy with a SEK360.00 price target. To see the full list of analyst forecasts on Essity AB stock, see the SE:ESSITY.B Stock Forecast page.

Essity Executes Share Buyback as Part of Capital Strategy

Essity has repurchased 251,715 of its own Class B shares as part of a SEK 3 billion buyback program announced in April 2025. This initiative, financed through cash flow from current operations, aims to make share buybacks a recurring element of Essity’s capital allocation strategy, potentially impacting the company’s financial structure and shareholder value.

The most recent analyst rating on ($SE:ESSITY.B) stock is a Buy with a SEK360.00 price target. To see the full list of analyst forecasts on Essity AB stock, see the SE:ESSITY.B Stock Forecast page.

Essity Initiates Significant Share Buyback Program

Essity announced the repurchase of 268,866 Class B shares as part of its SEK 3 billion buyback program, which will run until the 2026 Annual General Meeting. The buyback is financed through cash flow from current operations and aims to make share repurchases a recurring element of Essity’s capital allocation strategy, potentially impacting shareholder value and market perception.

The most recent analyst rating on ($SE:ESSITY.B) stock is a Buy with a SEK360.00 price target. To see the full list of analyst forecasts on Essity AB stock, see the SE:ESSITY.B Stock Forecast page.

Essity Executes Strategic Share Buyback Program

Essity announced the repurchase of 259,857 Class B shares as part of its SEK 3bn buyback program, which aims to enhance capital allocation through ongoing share buybacks. This initiative, conducted in compliance with EU regulations, reflects Essity’s strategic financial management and commitment to shareholder value.

Essity Appoints Ulrika Kolsrud as New CEO

Essity has appointed Ulrika Kolsrud as its new President and CEO, effective June 1, 2025. Kolsrud, currently the President of Essity’s Health & Medical unit, brings extensive experience across the company’s operations and is expected to lead Essity into a new phase focused on growth and profitability. Her appointment follows the departure of Magnus Groth and is seen as a strategic move to enhance the company’s market position and innovation capabilities.

Essity Launches SEK 3 Billion Share Buyback Program

Essity has initiated a share buyback program, repurchasing 102,990 Class B shares as part of a SEK 3 billion initiative. This program, which will continue until the 2026 Annual General Meeting, is financed through cash flow from current operations and aims to make share buybacks a recurring aspect of Essity’s capital allocation strategy.

Essity Launches SEK 3 Billion Share Buyback Program

Essity has initiated a buyback program for its Class B shares, repurchasing 102,990 shares as part of a SEK 3 billion initiative. This program, in compliance with EU regulations, aims to use cash flow from operations for share buybacks, marking a strategic move in Essity’s capital allocation strategy.

Essity Initiates SEK 3bn Share Buyback Program

Essity announced the repurchase of 102,990 Class B shares as part of a SEK 3bn buyback program, which will run until the 2026 Annual General Meeting. This initiative, funded by cash flow from current operations, aims to make share buybacks a recurring element of Essity’s capital allocation strategy, potentially impacting shareholder value and market perception.

Essity Initiates Share Buyback Program

Essity announced the repurchase of 102,990 Class B shares as part of its SEK 3bn buyback program, initiated on April 23, 2025. The buyback, financed through cash flow from operations, aims to be a recurring element of Essity’s capital allocation strategy, potentially impacting shareholder value and market perception.

Essity Launches SEK 3 Billion Share Buyback Program

Essity has initiated a SEK 3 billion share buyback program, repurchasing 102,990 Class B shares as part of its strategy to utilize cash flow from operations for capital allocation. The buyback, conducted on Nasdaq Stockholm, is in line with EU regulations and aims to be a recurring element of Essity’s financial strategy, potentially impacting shareholder value and market positioning.

Essity Launches SEK 3bn Share Buyback Program

Essity has initiated a SEK 3bn share buyback program, repurchasing 102,990 Class B shares between April 24 and April 25, 2025. The buyback is part of Essity’s strategy to use cash flow from operations for capital allocation, with plans to continue repurchasing shares over time. This move is expected to impact Essity’s market positioning by potentially increasing shareholder value and demonstrating financial stability.