Essity AB (SE:ESSITY.B)
:ESSITY.B
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Essity AB
(ESSITY.B)
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Rating:67Neutral
Price Target:
kr312.00
▲(18.09% Upside)
Action:DowngradedDate:01/26/26
The score is driven by solid fundamentals (improving margins, stronger balance sheet, consistently positive free cash flow) and a constructive earnings outlook emphasizing savings, reinvestment for growth, and shareholder returns. These positives are tempered by weak technical momentum and lingering volume/price headwinds in key consumer categories.
Positive Factors
Margin expansion and profitability recovery
Sustained margin expansion to 14.1% signals structural improvement in cost base and pricing execution. Higher operating margins support durable free cash flow, fund buybacks/dividends and reinvestment into A&P and innovation, improving resilience versus cyclical revenue swings.
Negative Factors
Choppy revenue and category volume declines
Persistent revenue softness and category volume declines (notably Baby Care and Consumer Tissue) indicate structural demand pressures. Reduced volumes can erode scale, raise per-unit costs and limit the ability to sustain pricing, constraining long-term top-line recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin expansion and profitability recovery
Sustained margin expansion to 14.1% signals structural improvement in cost base and pricing execution. Higher operating margins support durable free cash flow, fund buybacks/dividends and reinvestment into A&P and innovation, improving resilience versus cyclical revenue swings.
Read all positive factors
Essity AB (ESSITY.B) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr168.78B
Dividend Yield3.13%
Average Volume (3M)1.26M
Price to Earnings (P/E)14.4
Beta (1Y)0.33
Revenue Growth-1.91%
EPS Growth-40.37%
CountrySE
Employees36,000
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)4.69
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
kr256.20Price Target Upside-3.03% Downside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)19.56
Revenue Forecast (FY)kr137.32B
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 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 d...
Essity AB Earnings Call Summary
Earnings Call Date:Jan 22, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call presented a predominantly constructive operational and financial picture: strong margin expansion, substantial COGS tailwinds and realized cost savings, solid cash flow and balance-sheet metrics (net debt/EBITDA ~1.0), successful strategic M&A and clear market-share gains and product innovation momentum—particularly in Health & Medical, Incontinence and premium Professional Hygiene. Offsetting these positives are continuing end-market headwinds in Baby and Consumer Tissue (volume declines of ~4% and ~2% respectively), negative price/mix in the quarter (~-0.9%), some one-off rebate impacts (Latin America Feminine), lost private-label contracts and the near-term costs of the restructuring program. Management’s messaging emphasizes agility, reinvestment of savings into A&P to drive volume, a disciplined M&A stance, and confidence in returning to stronger profitable volume growth in 2026. On balance, the positive margin, cash and strategic momentum outweigh the category-specific volume challenges and temporary pricing effects.Positive Updates
Improved Profitability and Margins
Operating margin for 2025 of 14.1% (second-highest historic level outside pandemic); gross profit margin improved ~180 basis points in Q4 versus prior year; margin improvements reported across all three business areas.
Negative Updates
Negative Organic Sales in Q4
Q4 reported negative organic sales growth driven by price declines (management lowered prices to pass on lower input costs) and slight volume decline versus the prior-year quarter.
Read all updates
Q4-2025 Updates
Positive
Negative
Improved Profitability and Margins
Operating margin for 2025 of 14.1% (second-highest historic level outside pandemic); gross profit margin improved ~180 basis points in Q4 versus prior year; margin improvements reported across all three business areas.
Read all positive updates
Company Guidance
Guidance in the call was that Q1 2026 should see slightly lower COGS (partly from savings and favourable raw‑material FX) but slightly higher SG&A versus Q1 2025, driven primarily by increased A&P to fuel growth; for the full year management expects CapEx of SEK 8.0–8.5 billion, corporate costs of about SEK 1.3 billion, a structural tax rate of 25–26%, and reiterates COGS‑savings guidance of SEK 500 million–1 billion. They plan an SG&A cost‑savings program targeting a SEK 1.0 billion run‑rate by end‑2026 (with restructuring charges of ~SEK 1.1 billion expected), will reinvest the majority of savings into growth, and noted a strong balance‑sheet position (net debt/EBITDA ≈ 1.0) while continuing the SEK 3.0 billion share buyback (≈ SEK 2.4 billion / 9.2 million shares, ~80% completed).Essity AB Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
78
Positive
Cash Flow
66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 138.49B | 145.55B | 147.15B | 156.17B | 121.87B |
| Gross Profit | 46.12B | 47.13B | 45.13B | 37.23B | 35.09B |
| EBITDA | 25.74B | 26.14B | 20.90B | 15.44B | 20.45B |
| Net Income | 12.66B | 20.89B | 9.55B | 5.57B | 8.62B |
Balance Sheet | |||||
| Total Assets | 167.12B | 185.28B | 202.99B | 210.60B | 175.05B |
| Cash, Cash Equivalents and Short-Term Investments | 9.75B | 15.62B | 5.19B | 4.50B | 4.09B |
| Total Debt | 38.63B | 43.78B | 60.98B | 71.52B | 56.83B |
| Total Liabilities | 81.08B | 96.54B | 123.59B | 134.04B | 106.54B |
| Stockholders Equity | 85.63B | 88.31B | 70.85B | 67.35B | 59.87B |
Cash Flow | |||||
| Free Cash Flow | 8.37B | 9.40B | 14.68B | 5.92B | 7.31B |
| Operating Cash Flow | 15.46B | 16.80B | 21.57B | 12.87B | 14.67B |
| Investing Cash Flow | -3.22B | 9.41B | -7.11B | -14.50B | -12.13B |
| Financing Cash Flow | -14.40B | -22.34B | -11.55B | 1.81B | -3.81B |
Essity AB Technical Analysis
Negative
264.20
Price Trends
257.63
Negative
255.76
Negative
250.25
Negative
Market Momentum
-4.86
Negative
40.75
Neutral
35.03
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 264.2 is above the 20-day moving average (MA) of 246.59, above the 50-day MA of 257.63, and above the 200-day MA of 250.25, indicating a bearish trend. The MACD of -4.86 indicates Negative momentum. The RSI at 40.75 is Neutral, neither overbought nor oversold. The STOCH value of 35.03 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | kr5.51B | 17.51 | 58.76% | 2.54% | 48.79% | 38.02% | |
67 Neutral | kr168.78B | 14.44 | 14.26% | 3.13% | -1.91% | -40.37% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | kr4.58B | 15.85 | 9.34% | 4.83% | 3.79% | 39.15% | |
47 Neutral | kr113.54M | 22.14 | 5.40% | ― | 8.54% | -4.76% | |
42 Neutral | kr14.97M | -0.73 | -572.32% | ― | -15.74% | 44.98% |
* Consumer Defensive Sector Average
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Essity AB Corporate Events
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...
Essity Wins CDP A List Recognition for Forest Leadership and Strong Climate Performance
Jan 22, 2026
Essity has been named to environmental non-profit CDP’s prestigious A List for its performance and transparency on forests and received an A- rating for climate, placing it among the top 4% of more than 22,000 companies assessed globally. Th...
Essity Lifts Profitability and Dividend Despite Lower 2025 Sales
Jan 22, 2026
Essity ended 2025 with higher margins and profitability despite lower reported sales, as currency effects weighed on the top line but underlying demand and pricing remained resilient. In the fourth quarter, net sales fell 8.2% to SEK 34.7bn and or...
Essity Sets Capital Markets Day to Showcase Growth Strategy and Targets
Jan 22, 2026
Essity has scheduled a Capital Markets Day for May 7, 2026, at its Gothenburg office, aimed at giving institutional investors, analysts and media a detailed update on its strategy and progress. President and CEO Ulrika Kolsrud and the executive ma...
Essity Expands Treasury Stock with Continued Share Buybacks in January 2026
Jan 19, 2026
Essity has continued to execute its ongoing share buyback program, repurchasing 66,186 Class B shares on Nasdaq Stockholm between 12 and 16 January 2026 for a total of about SEK 17.7m at an average price of SEK 267.31 per share. The purchases, con...
Essity Steps Up SEK 3bn Share Buyback, Lifts Treasury Share Holding
Jan 12, 2026
Essity has continued executing its previously announced SEK 3bn share buyback program, repurchasing 57,798 Class B shares on Nasdaq Stockholm during the week of January 5–9, 2026, at a total transaction value of about SEK 15.1m. The buybacks...
Essity Lawsuit Over Bond Loans Dropped After Agreement With Funds
Jan 8, 2026
Essity has closed a legal dispute in the English courts after funds that had challenged the company over bond loans maturing in 2029, 2030 and 2031 chose to discontinue their lawsuit. The parties reached an agreement confirming that neither side h...
Essity Advances SEK 3bn Share Buyback, Increases Treasury Shareholding
Jan 5, 2026
Essity has continued to execute its previously announced SEK 3 billion share buyback program, repurchasing 42,073 Class B shares on Nasdaq Stockholm between December 29, 2025 and January 2, 2026, at a weighted average price of SEK 263.67 and a tot...
Essity Reports Share Conversion That Marginally Reduces Voting Power Concentration
Dec 30, 2025
Essity has disclosed a change in its share structure following the conversion of 146,000 Class A shares into Class B shares at the request of shareholders. The move, which reduces the company’s total voting rights to 1,216,860,411 while keep...
Essity Continues Share Buyback Program With Week 52 Class B Repurchases
Dec 29, 2025
Essity has continued execution of its SEK 3bn share buyback program, repurchasing 29,421 Class B shares on Nasdaq Stockholm during week 52 of 2025 at a total transaction value of about SEK 7.7m. The purchases, carried out by BofA Securities Europe...
Essity Steps Up SEK 3bn Share Buyback, Lifts Treasury Stock to Nearly 10 Million Shares
Dec 22, 2025
Essity has continued executing its SEK 3bn share buyback program, repurchasing 73,113 Class B shares on Nasdaq Stockholm during the week of December 15–19, 2025, at a total value of about SEK 19.4m and an average price of SEK 265.33 per shar...
Essity to Present Q4 and Full-Year 2025 Financial Report
Dec 17, 2025
Essity announced it will release its Q4 and full-year 2025 financial report on January 22, 2026. The report will be presented by President and CEO Ulrika Kolsrud and CFO Fredrik Rystedt via a live webcast and teleconference, providing stakeholders...
Essity Continues Share Buyback Program
Dec 15, 2025
Essity announced the repurchase of 156,888 Class B shares as part of its SEK 3 billion buyback program, which runs until the 2026 Annual General Meeting. The buyback is financed by cash flow from operations and aims to be a recurring element of Es...
Essity Appoints Ilham Smaali as Chief Supply Chain Officer
Dec 12, 2025
Essity has appointed Ilham Smaali as the new Chief Supply Chain Officer, effective December 31, 2025. This appointment is part of Essity’s strategy to enhance its supply chain operations through a newly established function, Supply Chain Ena...
Essity Advances Share Buyback Program with Recent Repurchase
Dec 8, 2025
Essity has repurchased 190,572 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...
Essity AB Announces Strategic Reorganization of Business Areas
Dec 2, 2025
Essity AB announced a reorganization of its business areas effective January 1, 2026, to enhance growth and achieve financial targets more swiftly. The new structure will consist of Health Medical, Personal Care, Consumer Tissue, and Professional...
Essity AB Advances Share Buyback Program with Recent Repurchase
Dec 1, 2025
Essity AB announced the repurchase of 186,672 Class B shares as part of its SEK 3 billion buyback program, which is set to continue until the 2026 Annual General Meeting. This strategic move, financed by cash flow from current operations, aims to ...
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.