tiprankstipranks
Trending News
More News >
Essity AB (SE:ESSITY.B)
:ESSITY.B
Advertisement

Essity AB (ESSITY.B) AI Stock Analysis

Compare
3 Followers

Top Page

SE:ESSITY.B

Essity AB

(OTC:ESSITY.B)

Rating:74Outperform
Price Target:
kr287.00
▲(11.37% Upside)
Essity AB's stock score is driven by its stable financial performance and positive technical indicators. The valuation is attractive with a reasonable P/E ratio and a solid dividend yield. However, challenges in revenue growth and cash flow generation are concerns that need to be addressed for future growth.

Essity AB (ESSITY.B) vs. iShares MSCI Sweden ETF (EWD)

Essity AB Business Overview & Revenue Model

Company DescriptionEssity 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 MoneyEssity generates revenue through the sale of its diverse product portfolio across various markets worldwide. The company's key revenue streams include consumer products such as sanitary napkins, baby diapers, and incontinence products, which cater to individual consumers, and professional hygiene products such as paper towels and dispensers sold to businesses and institutions. Essity's revenue model is bolstered by strong brand recognition and customer loyalty, enabling it to maintain premium pricing. Additionally, strategic partnerships with retailers and distributors enhance its market reach. The company also invests in innovation and sustainability initiatives, which not only improve product offerings but can lead to cost savings and increased market share, further contributing to its earnings.

Essity AB Earnings Call Summary

Earnings Call Date:Jul 17, 2025
(Q1-2025)
|
% Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balance between positive growth in sales and cash flow, along with strategic initiatives like product launches and share buybacks, against challenges such as volume declines in some segments and margin pressures due to increased costs.
Q1-2025 Updates
Positive Updates
Solid Financial Performance
Essity reported higher sales and strong cash flow in Q1 2025. All business areas showed strong growth, with a focus on high-margin categories.
Share Buyback Program
Essity announced a new SEK3 billion share buyback program, utilizing strong operating cash flow and indicating confidence in long-term growth.
Product Innovations and Launches
Essity launched several new products including Tena ProSkin slip and Libero Touch, enhancing their position in incontinence care and baby products.
Limited Impact from Tariffs
Essity reported a limited impact from tariffs due to its global production and sourcing strategy, which acts as a hedge against tariff fluctuations.
Strong Cash Flow and Balance Sheet
The company reported a very strong cash flow and further reduced net debt, with a net debt to EBITDA ratio of about 1.
Negative Updates
Challenges in Baby Care Segment
Baby Care saw a 6.5% decline in Q1 2025 due to lower demand and competitive pressure, although plans are in place for improvement.
Professional Hygiene Volume Decline
The Professional Hygiene segment reported a volume decline of 3.6%, particularly in North America due to softer demand.
COGS and Margin Pressure
Essity faced increased COGS, particularly due to high raw material costs, which were not fully offset by price increases, leading to margin pressure.
SG&A Cost Increases
SG&A expenses increased due to salary inflation and higher IT spending, impacting overall margin.
Company Guidance
During the Q1 2025 earnings call, Essity provided robust guidance, emphasizing a strategic focus on profitable volume growth. The company reported solid organic growth of 1.7% in Health & Medical and nearly 3% in Consumer Goods, with a notable 4.3% price/mix improvement in Professional Hygiene. Despite a 50 basis point drop in Consumer Goods margins, Essity maintained a strong cash flow and reduced net debt to approximately SEK 27 billion, achieving a net debt to EBITDA ratio of about 1. The company announced a SEK3 billion share buyback program, reflecting their confidence in capital efficiency and operating cash flow. Although impacted by higher COGS due to raw material costs, Essity's pricing strategies helped offset these headwinds, with a 2.1% price increase contributing to stable overall volumes. Despite facing challenges in North America’s Professional Hygiene sector, Essity plans to mitigate tariff impacts and enhance growth through strategic pricing, product innovation, and leveraging its global production footprint.

Essity AB Financial Statement Overview

Summary
Essity AB demonstrates a stable financial performance with strong profitability metrics and a solid balance sheet. However, challenges in revenue growth and cash flow generation could impact future growth prospects.
Income Statement
70
Positive
Essity AB's income statement shows a mixed performance. The company has maintained a healthy gross profit margin of around 32-33% over the years, indicating efficient production and pricing strategies. However, the net profit margin has seen a decline in the TTM period to 8.58% from 14.35% in 2024, suggesting increased costs or reduced pricing power. Revenue growth has been negative in recent periods, with a TTM decline of 1.67%, which could be a concern for future profitability. The EBIT and EBITDA margins remain stable, reflecting consistent operational efficiency.
Balance Sheet
75
Positive
The balance sheet of Essity AB reflects a stable financial position with a debt-to-equity ratio improving to 0.51 in the TTM period from 0.86 in 2023, indicating effective debt management. The return on equity (ROE) is strong at 14.82% in the TTM period, showcasing the company's ability to generate profits from shareholders' equity. The equity ratio is also healthy, suggesting a solid capital structure with a good proportion of equity financing.
Cash Flow
65
Positive
Essity AB's cash flow statement indicates some challenges. The free cash flow growth rate has been negative in recent periods, with a TTM decline of 10.86%, which could impact future investment capabilities. The operating cash flow to net income ratio is moderate at 0.40, suggesting that cash generation from operations is sufficient but not robust. The free cash flow to net income ratio is over 50%, indicating that a reasonable portion of net income is being converted into free cash flow.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue143.24B145.55B147.15B156.17B121.87B121.75B
Gross Profit46.78B47.13B45.13B37.23B35.09B39.44B
EBITDA25.69B26.14B20.90B15.44B20.45B24.89B
Net Income12.29B20.89B9.55B5.57B8.62B10.23B
Balance Sheet
Total Assets167.41B185.28B202.99B210.60B175.05B154.65B
Cash, Cash Equivalents and Short-Term Investments6.70B15.62B5.19B4.50B4.09B5.15B
Total Debt41.34B43.78B60.98B66.58B56.83B45.88B
Total Liabilities86.21B96.54B123.59B134.04B106.54B91.30B
Stockholders Equity80.80B88.31B70.85B67.35B59.87B54.35B
Cash Flow
Free Cash Flow7.91B9.40B14.68B5.92B7.31B11.21B
Operating Cash Flow15.04B16.80B21.57B12.87B14.67B17.82B
Investing Cash Flow-5.26B9.41B-7.11B-14.50B-12.13B-7.09B
Financing Cash Flow-16.10B-22.34B-11.55B1.81B-3.81B-8.38B

Essity AB Technical Analysis

Technical Analysis Sentiment
Positive
Last Price257.70
Price Trends
50DMA
252.88
Positive
100DMA
263.49
Negative
200DMA
274.36
Negative
Market Momentum
MACD
1.53
Negative
RSI
60.87
Neutral
STOCH
57.40
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 257.7 is above the 20-day moving average (MA) of 252.59, above the 50-day MA of 252.88, and below the 200-day MA of 274.36, indicating a neutral trend. The MACD of 1.53 indicates Negative momentum. The RSI at 60.87 is Neutral, neither overbought nor oversold. The STOCH value of 57.40 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$176.39B14.4814.51%3.20%-5.52%-35.37%
63
Neutral
$20.52B14.79-2.72%3.09%1.95%-4.74%
$665.99M33.3851.17%2.19%
€387.07M19.516.56%
€5.52M-598.14%
€13.08M17.697.04%
kr13.74M
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:ESSITY.B
Essity AB
257.70
-53.58
-17.21%
ZNZNF
Zinzino AB
19.00
11.53
154.35%
DE:2DU
Duni AB
8.14
0.02
0.25%
DE:651
LifeClean International AB
0.02
-0.30
-93.75%
DE:N170
Clemondo Group AB
0.92
0.16
21.05%
SE:LNFI
Ellen AB
1.21
0.22
22.22%

Essity AB Corporate Events

Essity Advances Shareholder Value with Class B Share Buyback
Aug 4, 2025

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
Jul 28, 2025

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.

Essity Advances SEK 3bn Share Buyback Program
Jul 21, 2025

Essity has repurchased 362,255 Class B shares as part of its SEK 3bn buyback program, which is set to continue until the 2026 Annual General Meeting. This move, financed through cash flow from current operations, is aligned with Essity’s strategy to make share buybacks a recurring element of its capital allocation, 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 Advances Share Buyback Program to Enhance Capital Strategy
Jul 14, 2025

Essity has repurchased 345,581 Class B shares as part of its SEK 3bn buyback program, which is set to continue until the 2026 Annual General Meeting. This move, financed by cash flow from operations, 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 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 Recognized for Sustainability Leadership by CDP
Jul 8, 2025

Essity has been recognized as a supplier engagement leader by CDP for the sixth consecutive year, highlighting its commitment to sustainability and climate change initiatives. The company aims to achieve net zero emissions by 2050, with a significant focus on reducing Scope 3 emissions by 35% by 2030, having already achieved a 21% reduction in 2024 through strong supplier collaboration and innovation.

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
Jul 7, 2025

Essity has repurchased 313,752 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 make share buybacks a regular component of Essity’s capital allocation strategy, potentially enhancing shareholder value and market confidence.

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
Jun 30, 2025

Essity has repurchased 352,192 Class B shares as part of its SEK 3bn buyback program, which began in April 2025 and will continue until the 2026 Annual General Meeting. This strategic move, financed through cash flow from operations, aims to make share buybacks a regular component of Essity’s capital allocation strategy, potentially impacting shareholder value and market positioning.

The most recent analyst rating on ($SE:ESSITY.B) stock is a Buy with a SEK300.00 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 Purchase
Jun 23, 2025

Essity has repurchased 279,202 Class B shares as part of its SEK 3bn buyback program, which commenced in April 2025 and will continue until the 2026 Annual General Meeting. This initiative, funded by cash flow from operations post-dividend, aims to make share buybacks a regular component of Essity’s capital allocation strategy, potentially enhancing shareholder value and market confidence.

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 to Release Q2 2025 Interim Report
Jun 17, 2025

Essity announced it will release its interim report for the second quarter of 2025 on July 17. The report will be presented by the company’s President and CEO, Ulrika Kolsrud, and CFO, Fredrik Rystedt, during a live webcast and teleconference, potentially impacting stakeholders by providing insights into the company’s financial performance and strategic direction.

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
Jun 16, 2025

Essity has repurchased 316,007 Class B shares as part of a SEK 3bn buyback program, which is set to continue until the 2026 Annual General Meeting. This initiative, funded by cash flow from operations, aims to make share buybacks a recurring element 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 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 Purchases
Jun 9, 2025

Essity has repurchased 204,612 Class B shares as part of its SEK 3bn 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 enhancing shareholder value and market positioning.

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 to Optimize Capital Allocation
Jun 2, 2025

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
May 26, 2025

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
May 19, 2025

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
May 12, 2025

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.

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.Date of analysis: Sep 05, 2025