Essity AB (SE:ESSITY.B)
:ESSITY.B
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Essity AB
(ESSITY.B)
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Rating:69Neutral
Price Target:
kr273.00
▲(3.33% Upside)
Action:ReiteratedDate:04/24/26
The score is primarily supported by solid financial performance (stronger margins and a strengthened balance sheet) and reasonable valuation with a healthy dividend. This is tempered by a mixed technical picture with limited momentum and earnings-call flagged near-term margin pressure from input-cost inflation and acquisition integration drag.
Positive Factors
Balance Sheet Strength
Material deleveraging and a stronger capital structure increase financial resilience. Lower leverage and reported net debt/EBITDA around 1.0 plus a pension liability reduction improve refinancing flexibility, support M&A or buybacks, and reduce solvency risk across economic cycles.
Negative Factors
Top-line Momentum Weakness
Revenue drift and FX-driven reported declines indicate limited organic momentum. Persistent soft categories (e.g., Consumer Tissue Europe, some retail segments) make earnings reliant on cost savings and M&A for growth, increasing execution dependence for sustainable topline recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Material deleveraging and a stronger capital structure increase financial resilience. Lower leverage and reported net debt/EBITDA around 1.0 plus a pension liability reduction improve refinancing flexibility, support M&A or buybacks, and reduce solvency risk across economic cycles.
Read all positive factors
Essity AB (ESSITY.B) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr170.75B
Dividend Yield3.13%
Average Volume (3M)1.26M
Price to Earnings (P/E)14.3
Beta (1Y)0.35
Revenue Growth-6.16%
EPS Growth0.85%
CountrySE
Employees36,000
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)4.23
Shares Outstanding635,853,800
10 Day Avg. Volume1,308,683
30 Day Avg. Volume1,261,182
Financial Highlights & Ratios
PEG Ratio-0.38
Price to Book (P/B)2.13
Price to Sales (P/S)1.32
P/FCF Ratio21.83
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
kr252.00Price Target Upside-4.62% Downside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)19.07
Revenue Forecast (FY)kr139.36B
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...
How the Company Makes Money
Essity primarily makes money by selling hygiene and health products through two main customer channels: (1) consumer retail and e-commerce (consumer goods) and (2) professional buyers (away-from-home and healthcare). Revenue is generated from the ...
Essity AB Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 16, 2026
Earnings Call Sentiment Positive
The call presented a constructive operational and financial picture: underlying constant‑currency sales growth, broad-based volume improvement, margin expansion, strong cash generation, balance sheet strength and strategic progress on M&A and sustainability. However, near‑term risks were highlighted — notably a reported sales decline from FX, Consumer Tissue softness in Europe, acquisition-related margin drag and expected input cost inflation with lagged P&L effects. Management emphasized pricing agility, ongoing integration and a continued cost‑savings and innovation agenda to protect margins. Overall, positives (organic/volume momentum, margin expansion, cash flow, completed strategic acquisition and share buyback) moderately outweigh the risks tied to commodity cost inflation, integration transition costs and some regional category weaknesses.Positive Updates
Reported vs Constant Currency Sales
Reported sales declined 5.1% (driven by a stronger SEK / currency translation) while sales increased ~1.5% in constant currency (roughly SEK 0.5 billion). The acquisition of the North American Feminine Care business contributed ~1.1% of the CC increase and organic sales growth contributed ~0.4%.
Negative Updates
Reported Sales Decline (FX Headwind)
Reported sales fell 5.1% due to currency translation effects from a stronger SEK, masking the underlying positive CC performance.
Read all updates
Q1-2026 Updates
Positive
Negative
Reported vs Constant Currency Sales
Reported sales declined 5.1% (driven by a stronger SEK / currency translation) while sales increased ~1.5% in constant currency (roughly SEK 0.5 billion). The acquisition of the North American Feminine Care business contributed ~1.1% of the CC increase and organic sales growth contributed ~0.4%.
Read all positive updates
Company Guidance
Guidance from the call was that Q2 will see higher COGS versus Q2 2025 and higher SG&A (mainly salary inflation and IT), with only small additional offset from the cost‑saving program in Q2; management emphasized they will “rebalance” by implementing selective price increases over time (oil‑based inputs have a c.4–5 month lag) rather than giving a short‑term margin forecast (long‑term EBITDA margin target remains >15%). Practical metrics mentioned: Q1 delivered SEK 4.4bn cash flow (SEK 3.0bn after finance/tax), net debt SEK 24.5bn (net debt/EBITDA ~1.0), reported sales −5.1% (FX), +1.5% in constant currency (organic +0.4%), volume +1.1% (Personal Care +3.5%, Professional Hygiene ~+1.9%, Consumer Tissue ~−0.5%), gross profit margin improvement ~60bp and group margin +40bp, Q1 cost savings ~SEK 130m with full‑year COGS savings target SEK 500–1,000m, energy hedges covering roughly 60% of exposure for the rest of the year, and the Feminine Care acquisition (paid ~SEK 3bn) is expected to be a near‑term margin drag (~10bp group, ~70bp Personal Care) to be recovered via integration synergies.Essity AB Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 136.69B | 138.49B | 145.55B | 147.15B | 156.17B | 121.87B |
| Gross Profit | 45.77B | 46.12B | 47.13B | 45.13B | 37.23B | 35.09B |
| EBITDA | 25.64B | 25.74B | 26.14B | 20.90B | 15.44B | 20.45B |
| Net Income | 12.47B | 12.66B | 20.89B | 9.55B | 5.57B | 8.62B |
Balance Sheet | ||||||
| Total Assets | 180.86B | 167.12B | 185.28B | 202.99B | 210.60B | 175.05B |
| Cash, Cash Equivalents and Short-Term Investments | 12.12B | 9.75B | 15.62B | 5.19B | 4.50B | 4.09B |
| Total Debt | 42.31B | 38.63B | 43.78B | 60.98B | 71.52B | 56.83B |
| Total Liabilities | 92.70B | 81.08B | 96.54B | 123.59B | 134.04B | 106.54B |
| Stockholders Equity | 87.72B | 85.63B | 88.31B | 70.85B | 67.35B | 59.87B |
Cash Flow | ||||||
| Free Cash Flow | 9.57B | 8.37B | 9.40B | 14.68B | 5.92B | 7.31B |
| Operating Cash Flow | 16.78B | 15.46B | 16.80B | 21.57B | 12.87B | 14.67B |
| Investing Cash Flow | -8.91B | -3.22B | 9.41B | -7.11B | -14.50B | -12.13B |
| Financing Cash Flow | -6.86B | -14.40B | -22.34B | -11.55B | 1.81B | -3.81B |
Essity AB Technical Analysis
Positive
264.20
Price Trends
256.92
Negative
255.17
Negative
250.09
Positive
Market Momentum
-1.24
Negative
56.31
Neutral
69.44
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 244.47, above the 50-day MA of 256.92, and above the 200-day MA of 250.09, indicating a neutral trend. The MACD of -1.24 indicates Negative momentum. The RSI at 56.31 is Neutral, neither overbought nor oversold. The STOCH value of 69.44 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | kr4.92B | 17.51 | 58.76% | 2.54% | 51.48% | 83.42% | |
69 Neutral | kr170.75B | 14.34 | 14.26% | 3.13% | -6.16% | 0.85% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
57 Neutral | kr4.25B | 33.11 | 9.34% | 4.83% | -1.56% | 16.94% | |
47 Neutral | kr111.61M | 22.14 | 5.40% | ― | 11.12% | -10.77% | |
45 Neutral | kr21.16M | -0.73 | -572.32% | ― | -10.66% | 58.05% |
* Consumer Defensive Sector Average
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Essity AB Corporate Events
Essity Starts 2026 with Margin Gains, Edgewell Deal and Share Buyback
Apr 23, 2026
Essity reported a mixed start to 2026, with first-quarter net sales down 5.1% to SEK 33.2bn, mainly due to currency effects, while organic sales inched up 0.4% as higher volumes offset lower price and mix. EBITA excluding items affecting comparabi...
Essity Launches SEK 3bn Share Buyback to Embed Repurchases in Capital Strategy
Apr 22, 2026
Essity has approved a new share buyback program of SEK 3bn, authorizing the repurchase of Class B shares starting no earlier than May 11, 2026, and running until the 2027 Annual General Meeting at the latest. The program, financed from operating c...
Essity AGM approves dividend, share cancellation and buy‑back mandate
Mar 26, 2026
Essity held its 2026 Annual General Meeting in Stockholm, where shareholders approved the 2025 financial statements and set a dividend of SEK 8.75 per share, underscoring continued cash returns to investors. The meeting also confirmed board and co...
Essity Completes SEK 3bn Share Buyback, Signals Ongoing Repurchase Strategy
Mar 23, 2026
Essity has completed a share buyback program initiated in April 2025, repurchasing a total of 11,566,941 Class B shares for roughly SEK 3bn, including 406,220 shares acquired during week 12 of 2026. The transactions, executed on Nasdaq Stockholm b...
Essity Sets April 23 Date to Present Q1 2026 Interim Results
Mar 23, 2026
Essity will release its interim report for the first quarter of 2026 on April 23 at around 07:00 CET, providing an early look at the hygiene and health group’s financial performance this year. President and CEO Ulrika Kolsrud and Executive V...
Essity Nears Completion of SEK 3bn Share Buyback Programme
Mar 16, 2026
Essity has continued executing its share buyback programme, repurchasing 251,239 Class B shares on Nasdaq Stockholm between March 9 and March 13, 2026, at a weighted average price of SEK 261.71 and a total value of about SEK 65.8m. The trades, car...
Essity Advances SEK 3bn Share Buyback, Lifts Treasury Share Position
Mar 9, 2026
Essity has continued to execute its ongoing share buyback program, repurchasing 241,501 Class B shares on Nasdaq Stockholm between March 2 and March 6, 2026. The program, totaling up to SEK 3bn and running until the 2026 annual general meeting, is...
Essity Names New Chief Digital & Information Officer to Drive Transformation
Mar 3, 2026
Essity has appointed Niklas Westin Sundberg as Chief Digital Information Officer, replacing Carl‑Magnus Månsson, who is leaving for an external role. Sundberg will join the Executive Management Team on April 15, 2026 and report directl...
Essity Posts Strong 2025 Results and Lifts Dividend as Annual Report Released
Mar 2, 2026
Hygiene and health group Essity has published its Annual Report for 2025, detailing a year in which net sales reached SEK 138bn and EBITA excluding items affecting comparability rose to SEK 19.6bn, corresponding to a margin of 14.1%. Earnings per ...
Essity Advances SEK 3bn Share Buyback With New Class B Repurchases
Mar 2, 2026
Essity has continued to execute on its SEK 3bn share buyback program, repurchasing 212,306 Class B shares on Nasdaq Stockholm during the week of February 23–27, 2026, at a weighted average price of SEK 287.83. These latest transactions bring...
Essity Advances SEK 3bn Share Buyback, Lifting Treasury Stock to 11.2 Million Shares
Feb 23, 2026
Essity has continued to execute on its SEK 3bn share buyback program, repurchasing 63,292 Class B shares on Nasdaq Stockholm during week eight of 2026 for a total consideration of about SEK 18m. The purchases, carried out by BofA Securities Europe...
Essity outlines procedures for 2026 Annual General Meeting participation
Feb 19, 2026
Essity has convened its 2026 Annual General Meeting for 26 March at the Stockholm Waterfront Congress Centre, offering shareholders the option to participate in person, by proxy, or through advance postal voting. To exercise their voting rights, s...
Essity to Showcase Growth Strategy and Sustainable Production at May Capital Markets Day
Feb 17, 2026
Essity will host a Capital Markets Day on May 7, 2026, at its Gothenburg office, where President and CEO Ulrika Kolsrud and the executive team will outline the company’s strategy for profitable growth and detail value-creation initiatives ac...
Essity Advances SEK 3bn Share Buyback With New Class B Repurchases
Feb 16, 2026
Essity has continued executing its SEK 3bn share buyback program, repurchasing 65,565 Class B shares on Nasdaq Stockholm during the week of February 9–13, 2026, at a weighted average price of SEK 279.44 per share. These transactions, carried...
Essity Advances SEK 3bn Share Buyback With New Week of B‑Share Purchases
Feb 9, 2026
Essity has continued to execute on its capital allocation strategy by repurchasing 69,537 Class B shares during the week of February 2–6, 2026, as part of its previously announced SEK 3bn share buyback program. The transactions, carried out ...
Essity Closes USD 340m Deal for Edgewell’s Feminine Care Brands to Bolster US Presence
Feb 2, 2026
Essity has completed its USD 340m acquisition of Edgewell Personal Care’s feminine care business, securing the Carefree, Stayfree and o.b. brands in North America along with global feminine care rights to the Playtex brand, plus a production...
Essity Advances SEK 3bn Share Buyback Program With New Class B Repurchases
Feb 2, 2026
Essity has continued executing its SEK 3bn share buyback program, repurchasing 170,916 Class B shares on Nasdaq Stockholm between January 26 and 30, 2026, for a total of about SEK 43.8m at an average price of SEK 256.41 per share. The purchases, c...
Essity Adjusts Voting Structure After Conversion of Class A Shares to Class B
Jan 30, 2026
Essity has disclosed a change in its share capital structure following the conversion of 1,000,000 Class A shares into Class B shares at the request of shareholders, a move that reduces the total number of votes in the company. After the conversio...
Essity Secures EUR 400m EIB Loan to Boost Innovation and Sustainability
Jan 29, 2026
Essity has secured a seven-year EUR 400 million loan from the European Investment Bank on favorable terms to finance research, development and innovation across all its business areas. The funding is aimed at strengthening Essity’s innovatio...
Essity Expands Share Buyback, Lifts Treasury Stock to Nearly 10.9 Million B Shares
Jan 26, 2026
Essity has repurchased 725,349 of its own Class B shares on Nasdaq Stockholm between January 19 and 23, 2026, as part of a SEK 3bn share buyback program running until the 2026 Annual General Meeting. The buybacks, executed by BofA Securities Europ...
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.