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Essity AB Class B (SE:ESSITY.B)
:ESSITY.B
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Essity AB (ESSITY.B) AI Stock Analysis

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SE:ESSITY.B

Essity AB

(OTC:ESSITY.B)

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Outperform 71 (OpenAI - 4o)
Rating:71Outperform
Price Target:
kr292.00
▲(10.52% Upside)
Essity AB's overall stock score reflects a stable financial performance and positive earnings call sentiment. While technical indicators suggest caution due to overbought conditions, the company's strategic initiatives and fair valuation provide a balanced outlook.

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

Essity AB Business Overview & Revenue Model

Company DescriptionEssity AB is a global leader in hygiene and health products, focusing on sustainable solutions that enhance well-being. Operating in two primary sectors—Consumer and Professional Hygiene—Essity offers a broad range of products, including personal care items like diapers, feminine hygiene products, and incontinence solutions, as well as tissue and paper products for both household and professional use. The company's commitment to innovation and sustainability is reflected in its product development and manufacturing processes, aiming to improve quality of life while minimizing environmental impact.
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:Oct 23, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Jan 22, 2026
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with a focus on innovation and growth initiatives. Despite some challenges in specific segments and markets, Essity has demonstrated resilience with strong profit margins and strategic reorganization plans to drive future growth.
Q3-2025 Updates
Positive Updates
Positive Organic Sales Growth
Essity reported a 0.9% organic sales growth in Q3 2025, with price being the most significant contributor. Growth was observed across all three business areas.
Record High Gross Profit Margins
The company achieved record high gross profit margins, contributing to a profit margin of 14.6%.
Strong Cash Flow and Profit
Essity generated a strong cash flow and reported a profit above SEK 5 billion.
Innovations in Health and Medical
The launch of Actimove Manus Air and TENA Pro skin stretch day and night products are expected to drive future growth in medical and incontinence care segments.
Growth in U.S. Retail Incontinence Sales
Incontinence sales in U.S. retail grew by 21% in the quarter.
Improvement in Baby Segment
The baby segment showed improvement with a reduced volume decline from 4.5% in previous quarters to about 1% in Q3 2025.
Professional Hygiene Improvement
Sequential volume improvement in Professional Hygiene attributed to selective price adjustments and focus on the value segment.
Reorganization and Cost-Saving Initiatives
Essity announced a reorganization into four global business units and a cost-saving program expected to generate SEK 1 billion by the end of 2026.
Negative Updates
Decline in Consumer Tissue and Baby Segments
The Consumer Tissue segment suffered from weaker consumer sentiment and increased price competitiveness, while the Baby segment continued to decline albeit at a lower rate.
Challenging Market Conditions in Incontinence Care
Despite strong underlying growth in certain markets, challenging market conditions persist in others for Incontinence Care.
Impact of Currency Fluctuations
Essity's absolute sales were down by 4.5% due to the strengthening of the Swedish krona despite organic sales growth.
High Price Competition in Consumer Tissue
The Consumer Tissue business faced significant price competition, impacting volume growth.
Tariff Impact
Essity faced a tariff impact of SEK 110 million in Q3, expected to be SEK 70 million in Q4.
Company Guidance
In the recent call, Essity outlined its Q3 2025 performance, reporting a 0.9% organic sales growth with contributions from price, volume, and mix, leading to a profit margin of 14.6%. The company achieved a strong cash flow and a profit exceeding SEK 5 billion. To accelerate growth, Essity announced two key initiatives: a reorganization into four global business units with full P&L responsibility and a cost-saving program aiming to reduce SG&A by SEK 1 billion by the end of 2026. The Health and Medical segment marked its 18th consecutive quarter of growth, driven by innovation in medical solutions and incontinence care. In the U.S., incontinence retail sales surged by 21%, while Feminine Care continued to grow robustly, particularly in Mexico. However, challenges persisted in Consumer Tissue and Baby categories due to weakening consumer sentiment and competitive pressures. The company remains focused on executing its strategy to drive profitable growth and improve margins through targeted investments and efficiency improvements.

Essity AB Financial Statement Overview

Summary
Essity AB demonstrates 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 Price264.20
Price Trends
50DMA
254.16
Positive
100DMA
253.70
Positive
200DMA
266.34
Positive
Market Momentum
MACD
3.13
Positive
RSI
68.89
Neutral
STOCH
58.49
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 262.07, above the 50-day MA of 254.16, and below the 200-day MA of 266.34, indicating a bullish trend. The MACD of 3.13 indicates Positive momentum. The RSI at 68.89 is Neutral, neither overbought nor oversold. The STOCH value of 58.49 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
kr181.38B14.7814.26%3.14%-1.91%-40.37%
68
Neutral
€127.39M17.346.34%5.89%10.59%
66
Neutral
€4.89B14.959.65%4.83%3.79%39.15%
65
Neutral
kr4.08B19.8851.17%3.47%42.95%6.06%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
41
Neutral
kr39.06M-354.88%-15.74%44.98%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:ESSITY.B
Essity AB
267.50
-19.59
-6.82%
SE:ZZ.B
Zinzino AB
115.20
19.03
19.78%
SE:DUNI
Duni AB
104.40
11.06
11.85%
SE:LCLEAN
LifeClean International AB
0.13
-1.77
-93.31%
SE:CLEM
Clemondo Group AB
9.60
1.92
25.00%
SE:LNFI
Ellen AB
0.99
-0.11
-9.63%

Essity AB Corporate Events

Essity Announces Strategic Organizational Changes for Profitable Growth
Oct 23, 2025

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
Oct 20, 2025

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
Oct 13, 2025

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
Oct 6, 2025

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
Sep 29, 2025

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
Sep 23, 2025

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
Sep 22, 2025

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
Sep 19, 2025

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
Sep 15, 2025

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
Sep 8, 2025

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
Sep 1, 2025

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
Aug 29, 2025

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
Aug 25, 2025

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
Aug 18, 2025

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
Aug 14, 2025

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
Aug 11, 2025

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
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.

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: Oct 23, 2025