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

Essity AB (ESSITY.B) AI Stock Analysis

Compare
2 Followers

Top Page

SE

Essity AB

(OTC:ESSITY.B)

Rating:75Outperform
Price Target:
kr312.00
▲(20.37%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 (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 AB generates revenue primarily through the sale of its diverse range of hygiene and health products across various international markets. The company's revenue streams are divided into three main categories: Personal Care, Consumer Tissue, and Professional Hygiene. In the Personal Care segment, Essity makes money by selling products such as incontinence care, baby diapers, and feminine care products under brands like TENA and Libero. The Consumer Tissue segment includes the sale of toilet paper, kitchen rolls, facial tissues, and handkerchiefs under brands like Lotus and Tempo. For Professional Hygiene, Essity markets products and services designed to meet the hygiene needs of businesses and institutions, with its Tork brand leading in this space. Additionally, Essity has strategic partnerships and distribution networks that enhance its market reach, along with investments in sustainability and innovation that drive growth and profitability.

Essity AB Earnings Call Summary

Earnings Call Date:Jul 17, 2025
(Q1-2025)
|
% Change Since: 0.00%|
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
Essity reported a solid start to 2025 with strong cash flow and growth in high-margin categories. However, increased COGS pressure, challenges in Professional Hygiene volumes, and a decline in Baby Care posed significant challenges.
Q1-2025 Updates
Positive Updates
Strong Cash Flow and Balance Sheet
Essity reported a strong cash flow and a solid balance sheet with net debt to EBITDA of roughly about 1. They announced a new SEK3 billion share buyback program to allocate their strong operating cash flow.
Growth in High-Margin Categories
The company saw strong growth in high-margin categories such as Medical and Feminine Care. Health & Medical grew by 1.7% organically, driven by volume, price, and mix.
Product Superiority and Innovation
Product superiority reached a new level, with 71% of branded sales perceived as superior. There were notable product launches in Consumer Tissue and Incontinence Care.
Negative Updates
Increased COGS Pressure
The company faced increased COGS primarily due to higher raw material costs, with raw materials contributing approximately SEK600 million to the increase.
Volume Challenges in Professional Hygiene
Professional Hygiene experienced a 3.6% decline in volume, particularly in the North American foodservice space.
Decline in Baby Care
Baby Care saw a decline of 6.5% due to lower demand and fierce competition with high-priced promotions.
Company Guidance
In the first quarter of 2025, Essity reported a solid performance with higher sales and strong cash flow across all business areas. The company experienced growth in its high-margin categories, despite facing challenges such as higher costs of goods sold (COGS) and selling, general, and administrative (SG&A) expenses. Essity announced a SEK3 billion share buyback program, demonstrating its effective capital allocation strategy. In terms of product innovation, the company highlighted successful launches, including Tena ProSkin slip and Libero Touch, which contributed to their product superiority rating exceeding 70%. While tariffs were noted, their impact on Essity's business was deemed limited, thanks to the company's global production footprint. Looking forward, Essity aims to accelerate profitable growth with a focus on volume, maintaining stable volumes overall, and addressing specific areas such as North American Professional Hygiene and Baby Care where growth was softer. Overall, Essity remains committed to achieving its long-term growth targets amid a dynamic market environment.

Essity AB Financial Statement Overview

Summary
Essity AB exhibits strong financial health with robust profitability and efficient asset management. The company benefits from healthy margins and a balanced leverage profile, although it must focus on revenue growth and managing debt levels for sustained stability.
Income Statement
85
Very Positive
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
80
Positive
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
78
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue145.55B147.15B156.17B121.87B121.75B
Gross Profit47.13B45.13B37.23B35.09B39.44B
EBITDA26.14B20.90B15.44B20.45B24.89B
Net Income20.89B9.55B5.57B8.62B10.23B
Balance Sheet
Total Assets185.28B202.99B210.60B175.05B154.65B
Cash, Cash Equivalents and Short-Term Investments15.62B5.19B4.50B4.09B5.15B
Total Debt43.78B60.98B66.58B56.83B45.88B
Total Liabilities96.54B123.59B134.04B106.54B91.30B
Stockholders Equity88.31B70.85B67.35B59.87B54.35B
Cash Flow
Free Cash Flow9.40B14.68B5.92B7.31B11.21B
Operating Cash Flow16.80B21.57B12.87B14.67B17.82B
Investing Cash Flow9.41B-7.11B-14.50B-12.13B-7.09B
Financing Cash Flow-22.34B-11.55B1.81B-3.81B-8.38B

Essity AB Technical Analysis

Technical Analysis Sentiment
Negative
Last Price259.20
Price Trends
50DMA
270.28
Negative
100DMA
277.26
Negative
200DMA
283.31
Negative
Market Momentum
MACD
-2.04
Negative
RSI
39.03
Neutral
STOCH
23.06
Neutral
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 259.2 is below the 20-day moving average (MA) of 262.70, below the 50-day MA of 270.28, and below the 200-day MA of 283.31, indicating a bearish trend. The MACD of -2.04 indicates Negative momentum. The RSI at 39.03 is Neutral, neither overbought nor oversold. The STOCH value of 23.06 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$180.34B14.5115.22%3.15%-8.34%-31.13%
65
Neutral
£10.31B8.183.35%3.35%-1.42%18.13%
kr62.06B29.1434.34%3.13%
65
Neutral
kr180.34B14.48
3.16%-8.34%-31.13%
$978.23M17.0711.12%3.21%
DE2DU
€386.58M19.636.56%5.29%
DE6MA
€837.19M16.3512.49%1.84%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:ESSITY.B
Essity AB
247.50
-45.71
-15.59%
GB:0R6R
Axfood AB
289.20
33.39
13.05%
SE:ESSITY.A
Essity Aktiebolag
249.00
-43.42
-14.85%
CLOEF
Cloetta AB
3.52
1.46
70.87%
DE:2DU
Duni AB
8.18
-0.12
-1.45%
DE:6MA
Ambea AB
10.52
3.90
58.91%

Essity AB Corporate Events

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.

Essity Appoints Ulrika Kolsrud as New CEO
May 9, 2025

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
Apr 28, 2025

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
Apr 28, 2025

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
Apr 28, 2025

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
Apr 28, 2025

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
Apr 28, 2025

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
Apr 28, 2025

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.

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: Jun 03, 2025