Essity AB (ESSITY.B) AI Stock Analysis

• Market Cap: kr180.06B
• Dividend Yield: 3.16%
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.11
• Revenue Growth: -1.91%
• EPS Growth: -40.37%
• Country: SE
• Employees: 36,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 4.86
• Shares Outstanding: 634,580,800
• 10 Day Avg. Volume: 1,263,419
• 30 Day Avg. Volume: 1,280,532
• PEG Ratio: 0.08
• Price to Book (P/B): 2.34
• Price to Sales (P/S): 1.42
• P/FCF Ratio: 22.02
• 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: kr260.66
• Price Target Upside: -1.34% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): 19.04
• Revenue Forecast (FY): kr139.14B

• Rating: 72 Outperform
• Price Target: kr291.00 ▲(10.14% Upside)

Essity AB's overall stock score reflects its strong operational efficiency and strategic initiatives to drive growth. While the company faces challenges in certain segments, its fair valuation and positive earnings call sentiment contribute positively to the score. The balanced technical indicators suggest a stable outlook.

Positive Factors

Reorganization and Cost-Saving Initiatives

The reorganization and cost-saving initiatives are likely to enhance operational efficiency and profitability, positioning Essity for sustainable growth.

Innovation in Health and Medical Segments

Innovative products in health and medical segments can strengthen market position and boost long-term revenue growth through enhanced product offerings.

Strong Cash Flow and Profit

Robust cash flow and profitability provide financial stability and flexibility, enabling Essity to invest in growth opportunities and withstand market challenges.

Negative Factors

Decline in Consumer Tissue and Baby Segments

Challenges in key segments like Consumer Tissue and Baby can hinder overall revenue growth and market share, affecting long-term business performance.

Impact of Currency Fluctuations

Currency fluctuations can adversely impact financial results, reducing competitiveness in international markets and affecting profitability.

Declining Free Cash Flow Growth

A decline in free cash flow growth can limit Essity's ability to reinvest in business expansion and innovation, potentially impacting long-term growth prospects.

Essity AB 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 solutions with sensor technology. It operates in Personal Care, Consumer Tissue, Professional Hygiene, and Other segments. The company also provides consumer goods, such as incontinence products, pads, diapers, wet wipes, skincare products, intimate soaps, washable absorbent underwear, menstrual cups, toilet papers, household towels, handkerchiefs, facial tissues, and napkins; and professional hygiene products that consist of toilet papers, paper hand towels, napkins, hand soaps, hand lotions, hand sanitizers, dispensers, and cleaning and wiping products. In addition, it offers digital solutions, such as Internet of Things sensor technology enabling data-driven cleaning, as well as related service and maintenance to companies and office buildings, universities, healthcare facilities, industries, restaurants, hotels, stadiums, and other public venues. The company markets its health and medical products under the TENA, Leukoplast, Cutimed, JOBST, Actimove, and Delta-Castbrands brands through pharmacies, medical devices stores, hospitals, distributors, and care institutions, as well as e-commerce; consumer goods products under the Libero, Libresse, Nosotras, Saba, TOM Organic, Lotus, Regio, Tempo, and Vinda brands through retail trade and online; and professional hygiene products under the TORK brand through distributors and online. It serves in Europe, North America, Latin America, Asia, and internationally. Essity AB (publ) was founded in 1849 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

Essity generates revenue through the sale of its hygiene and health products across various consumer and professional segments. The company's primary revenue streams include the sale of consumer goods, which encompass personal care products like diapers and feminine hygiene items, as well as professional hygiene products for businesses, such as washroom hygiene solutions and industrial wipes. Additionally, Essity benefits from strong brand recognition, which contributes to customer loyalty and repeat purchases. The company has established significant partnerships with retailers and distributors globally, ensuring a widespread presence in various markets. Factors such as innovation in product development, a focus on sustainability, and expanding into emerging markets further enhance its earning potential.

Essity AB Financial Statement Overview

Summary

Essity AB shows strong operational efficiency and a stable financial position. However, challenges in revenue growth and profitability are evident, with declining net profit margins and ROE. Cash flow generation is adequate, but the decline in free cash flow growth is concerning.

Income Statement

Essity AB's income statement shows a stable gross profit margin around 32-33% over recent years, indicating consistent cost management. However, the net profit margin has declined from 14.35% in 2024 to 8.58% in TTM, reflecting reduced profitability. The revenue growth rate is negative in recent periods, with a notable decline of 1.14% in TTM, suggesting challenges in expanding sales. EBIT and EBITDA margins remain stable, indicating operational efficiency. Overall, the company demonstrates solid profitability but faces growth challenges.

Balance Sheet

Essity AB's balance sheet reflects a moderate debt-to-equity ratio of 0.51 in TTM, showing a manageable level of leverage. The return on equity has decreased from 23.65% in 2024 to 14.82% in TTM, indicating reduced shareholder returns. The equity ratio is stable, suggesting a balanced capital structure. While the company maintains a healthy financial position, the declining ROE highlights potential profitability concerns.

Cash Flow

The cash flow statement reveals a decline in free cash flow growth, with a significant drop of 20.14% in TTM. The operating cash flow to net income ratio is stable, indicating consistent cash generation relative to earnings. However, the free cash flow to net income ratio has decreased, reflecting challenges in converting earnings into free cash flow. While cash flow generation remains adequate, the declining free cash flow growth rate is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	141.60B	145.55B	147.15B	156.17B	121.87B	121.75B
Gross Profit	46.18B	47.13B	45.13B	37.23B	35.09B	39.44B
EBITDA	25.42B	26.14B	20.90B	15.44B	20.45B	24.89B
Net Income	12.32B	20.89B	9.55B	5.57B	8.62B	10.23B
Balance Sheet
Total Assets	167.62B	185.28B	202.99B	210.60B	175.05B	154.65B
Cash, Cash Equivalents and Short-Term Investments	7.72B	15.62B	5.19B	4.50B	4.09B	5.15B
Total Debt	39.20B	43.78B	60.98B	71.52B	56.83B	45.88B
Total Liabilities	83.64B	96.54B	123.59B	134.04B	106.54B	91.30B
Stockholders Equity	83.57B	88.31B	70.85B	67.35B	59.87B	54.35B
Cash Flow
Free Cash Flow	6.32B	9.40B	14.68B	5.92B	7.31B	11.21B
Operating Cash Flow	13.65B	16.80B	21.57B	12.87B	14.67B	17.82B
Investing Cash Flow	-3.01B	9.41B	-7.11B	-14.50B	-12.13B	-7.09B
Financing Cash Flow	-16.13B	-22.34B	-11.55B	1.81B	-3.81B	-8.38B

Essity AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 264.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ESSITY.B, the sentiment is Positive. The current price of 264.2 is above the 20-day moving average (MA) of 262.01, above the 50-day MA of 256.97, and below the 200-day MA of 265.58, indicating a neutral trend. The MACD of 0.45 indicates Positive momentum. The RSI at 51.17 is Neutral, neither overbought nor oversold. The STOCH value of 72.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:ESSITY.B.

Essity AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESSITY.B	72 Outperform	kr180.06B	14.67	14.26%	3.16%	-1.91%	-40.37%
ZZ.B	71 Outperform	kr6.04B	24.15	51.65%	2.40%	48.79%	38.02%
DUNI	71 Outperform	€4.89B	14.95	9.65%	5.04%	3.79%	39.15%
CLEM	68 Neutral	€127.39M	17.34	5.40%	―	8.54%	-4.76%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
LCLEAN	39 Underperform	€32.07M	―	-354.88%	―	-15.74%	44.98%

Essity AB Corporate Events

Essity Announces Strategic Organizational Changes for Profitable Growth

Essity is implementing organizational changes to enhance profitable growth by decentralizing decision-making and increasing accountability across product categories. This includes a cost savings program targeting SEK 1bn in annual savings by the end of 2026, focusing on sales and administrative expenses, with the aim to reinvest in profitable volume growth.

The most recent analyst rating on ($SE:ESSITY.B) stock is a Hold with a SEK285.00 price target. To see the full list of analyst forecasts on Essity AB stock, see the SE:ESSITY.B Stock Forecast page.

Essity Advances Share Buyback Program with Recent Repurchase

Essity has repurchased 249,659 Class B shares as part of a SEK 3bn buyback program, which is set to run until the 2026 Annual General Meeting. This initiative, financed by cash flow from operations, aims to make share buybacks 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 Hold with a SEK285.00 price target. To see the full list of analyst forecasts on Essity AB stock, see the SE:ESSITY.B Stock Forecast page.

Essity Advances Share Buyback Program with Recent Class B Shares Repurchase

Essity has repurchased 274,102 Class B shares as part of its SEK 3bn buyback program, which aims to enhance capital allocation through recurring share buybacks. This initiative, financed by cash flow from current operations, reflects Essity’s strategic focus on optimizing shareholder value and adhering to EU regulations.

The most recent analyst rating on ($SE:ESSITY.B) stock is a Hold with a SEK255.00 price target. To see the full list of analyst forecasts on Essity AB stock, see the SE:ESSITY.B Stock Forecast page.

Essity Advances SEK 3 Billion Share Buyback Program

Essity has repurchased 266,241 Class B shares as part of its SEK 3 billion buyback program initiated in April 2025. This move, financed through operational cash flow, aims to make share buybacks a recurring element of Essity’s capital allocation strategy, potentially enhancing shareholder value and market positioning.

The most recent analyst rating on ($SE:ESSITY.B) stock is a Sell with a SEK225.00 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 Strategic Capital Allocation

Essity announced the repurchase of 293,620 Class B shares as part of its SEK 3 billion buyback program, which runs until the 2026 Annual General Meeting. This initiative, financed through cash flow from operations, aims to enhance shareholder value and is conducted in compliance with EU regulations, reflecting Essity’s strategic capital allocation approach.

The most recent analyst rating on ($SE:ESSITY.B) stock is a Sell with a SEK225.00 price target. To see the full list of analyst forecasts on Essity AB stock, see the SE:ESSITY.B Stock Forecast page.

Essity to Release Q3 2025 Interim Report

Essity announced it will release its third-quarter interim report for 2025 on October 23. The report will be presented by President and CEO Ulrika Kolsrud and CFO Fredrik Rystedt via a live webcast and teleconference, providing stakeholders with insights into the company’s financial performance and strategic direction.

The most recent analyst rating on ($SE:ESSITY.B) stock is a Sell with a SEK228.00 price target. To see the full list of analyst forecasts on Essity AB stock, see the SE:ESSITY.B Stock Forecast page.

Essity Advances Share Buyback Program with Recent Repurchase

Essity has repurchased 271,160 Class B shares as part of its SEK 3 billion buyback program, which aims to enhance capital allocation through share buybacks financed by cash flow from operations. This strategic move is expected to impact Essity’s market positioning by potentially increasing shareholder value and optimizing capital structure.

The most recent analyst rating on ($SE:ESSITY.B) stock is a Sell with a SEK228.00 price target. To see the full list of analyst forecasts on Essity AB stock, see the SE:ESSITY.B Stock Forecast page.

Essity Announces Executive Management Change

Essity announced the departure of Donato Giorgio, President of Global Supply Chain and Executive Management Team member, effective October 31, 2025. Giorgio, who joined Essity in 2009, significantly contributed to the company’s sustainable manufacturing and circular resource solutions. The recruitment process for his successor is underway.

The most recent analyst rating on ($SE:ESSITY.B) stock is a Sell with a SEK228.00 price target. To see the full list of analyst forecasts on Essity AB stock, see the SE:ESSITY.B Stock Forecast page.

Essity Advances Share Buyback Program with Recent Repurchase

Essity has repurchased 243,717 Class B shares as part of its SEK 3 billion buyback program, which is set to continue until the 2026 Annual General Meeting. This initiative, financed through cash flow from operations, aims to make share buybacks 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 SEK279.00 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 Strategic Capital Allocation

Essity has repurchased 387,564 Class B shares as part of its SEK 3bn buyback program, which is set to run until the 2026 Annual General Meeting. This initiative, funded by cash flow from operations, is intended to be a recurring element of Essity’s capital allocation strategy, potentially enhancing shareholder value and market positioning.

The most recent analyst rating on ($SE:ESSITY.B) stock is a Buy with a SEK287.00 price target. To see the full list of analyst forecasts on Essity AB stock, see the SE:ESSITY.B Stock Forecast page.

Essity Advances Share Buyback Program to Strengthen Market Position

Essity has repurchased 416,394 Class B shares as part of its ongoing SEK 3bn buyback program, which aims to utilize cash flow from operations to enhance capital allocation. This strategic move, in line with EU regulations, is expected to influence Essity’s market position and shareholder value positively.

The most recent analyst rating on ($SE:ESSITY.B) stock is a Buy with a SEK285.00 price target. To see the full list of analyst forecasts on Essity AB stock, see the SE:ESSITY.B Stock Forecast page.

Essity Announces Share Conversion Impacting Voting Structure

Essity announced the conversion of 500,000 Class A shares to Class B shares, reducing the total number of votes in the company to 1,219,317,375. This conversion aligns with shareholder requests and is a standard procedure under Essity’s articles of association. The company currently has a total of 693,054,489 registered shares, with a majority being Class B shares. This conversion may impact voting dynamics within the company, reflecting shareholder preferences and potentially influencing future corporate decisions.

The most recent analyst rating on ($SE:ESSITY.B) stock is a Buy with a SEK285.00 price target. To see the full list of analyst forecasts on Essity AB stock, see the SE:ESSITY.B Stock Forecast page.

Essity Advances Share Buyback Program with Recent Repurchase

Essity has repurchased 390,489 Class B shares as part of its SEK 3 billion buyback program, which will continue until the 2026 Annual General Meeting. This initiative, funded by cash flow from operations, aims to integrate share buybacks as a regular component of Essity’s capital allocation strategy, potentially enhancing shareholder value.

The most recent analyst rating on ($SE:ESSITY.B) stock is a Buy with a SEK270.00 price target. To see the full list of analyst forecasts on Essity AB stock, see the SE:ESSITY.B Stock Forecast page.

Essity Advances Shareholder Value with Strategic Buyback

Essity announced the repurchase of 376,116 Class B shares as part of its SEK 3 billion buyback program, which aims to enhance capital allocation through recurring share buybacks. This initiative, financed by cash flow from operations, underscores Essity’s strategic commitment to shareholder value and compliance with EU regulations.

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 Appoints New President for Health & Medical Unit

Essity has appointed Anand Chandarana as the new President of its Business Unit Health & Medical, effective September 1, 2025. With extensive experience in sales, marketing, and innovation, Chandarana is expected to drive the unit’s next phase of profitable growth, enhancing Essity’s market position in health and medical solutions.

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 Advances Share Buyback Program with Recent Repurchase

Essity has repurchased 380,062 Class B shares as part of its SEK 3bn buyback program, which aims to optimize capital allocation and is financed by cash flow from operations. The buyback, conducted on Nasdaq Stockholm, reflects Essity’s strategy to enhance shareholder value and manage its capital structure effectively.

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 Advances Shareholder Value with Class B Share Buyback

Essity announced the repurchase of 365,756 Class B shares as part of its SEK 3 billion buyback program, which aims to enhance capital allocation through recurring share buybacks. This initiative, financed by cash flow from operations, underscores Essity’s strategic focus on shareholder value and compliance with EU regulations.

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 Advances Shareholder Value with Strategic Buyback

Essity has repurchased 375,672 Class B shares as part of a SEK 3bn buyback program announced earlier in 2025. This initiative, financed through cash flow from operations, is aligned with Essity’s capital allocation strategy and is expected to enhance shareholder value by reducing the number of shares outstanding. The buyback program is compliant with EU regulations and will continue until the 2026 Annual General Meeting.

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.