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Essity AB
(ESSITY.B)
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Rating:67Neutral
Price Target:
kr295.00
▲(11.66% Upside)
Action:Downgraded
Date:07/17/26
The score is driven primarily by improved profitability and deleveraging, but tempered by volatility in revenue/earnings, uneven free-cash-flow trends, and uncertainty from inconsistent TTM debt data. Valuation is supportive (mid-teens P/E and ~3.2% yield), while technicals and the latest earnings call are neutral-to-cautious due to near-term cost inflation and expected Q3 margin headwinds despite ongoing pricing and cost-savings actions.
Positive Factors
Recurring consumables model
Essity's core business sells repeat consumables (incontinence, tissue, medical supplies) across retail, healthcare and away‑from‑home channels. High-frequency, usage‑driven demand and dispenser/refill systems create predictable recurring revenue and durable unit volumes, supporting stable cash flows and customer stickiness over multiple quarters.
Negative Factors
Volatile revenue & cash flow
Historical swings in revenues and uneven free cash flow reduce predictability of operating performance and capital allocation. Choppy FCF (declines in 2024–25 before a TTM rebound) can constrain consistent investment, dividends or M&A, and increases funding and planning risk if volatility persists across business cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring consumables model
Essity's core business sells repeat consumables (incontinence, tissue, medical supplies) across retail, healthcare and away‑from‑home channels. High-frequency, usage‑driven demand and dispenser/refill systems create predictable recurring revenue and durable unit volumes, supporting stable cash flows and customer stickiness over multiple quarters.
Read all positive factors
Essity AB (ESSITY.B) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr184.37B
Dividend Yield3.13%
Average Volume (3M)1.26M
Price to Earnings (P/E)15.6
Beta (1Y)0.31
Revenue Growth-3.96%
EPS Growth0.20%
CountrySE
Employees36,000
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)17.72
Shares Outstanding625,744,500
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
kr247.67Price Target Upside-6.26% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering3
EPS Forecast (FY)19
Revenue Forecast (FY)kr140.45B
Essity AB Business Overview & Revenue Model
Company Description
Essity AB (publ) is a global manufacturer and distributor of personal care and wellness goods, along with related services. Its portfolio encompasses medical and healthcare items such as incontinence management solutions, wound care treatments, co...
How the Company Makes Money
Essity makes money primarily by selling hygiene and health products across three main business areas: (1) Health & Medical, (2) Consumer Goods, and (3) Professional Hygiene. Revenue is generated from recurring, high-volume sales of consumable prod...
Essity AB Earnings Call Summary
Earnings Call Date:Jul 16, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Neutral
Balanced/Neutral. The quarter showed clear operational strengths: volume-driven sales growth across multiple business areas (notably Personal Care, Health & Medical, and Professional Hygiene), progress on cost-savings (SEK 160m COGS savings, SEK 100m SG&A benefit) and strong cash and leverage metrics (SEK 2.8bn cash flow, net debt/EBITDA 1.1). At the same time, notable near-term headwinds persist: Consumer Tissue weakness, margin declines (gross profit margin down ~70bps), acquisition-related cost drag in Personal Care, and expected higher COGS in Q3 from rising pulp, oil-based inputs and energy. Management is implementing price increases and accelerating integration and cost programs to offset these pressures, but timing lags mean margin recovery is not immediate.Positive Updates
Volume-Driven Sales Growth and Net Sales Increase
Net sales increased by roughly SEK 1.0 billion vs. Q2 last year, with organic sales growth of 0.3% and acquisition-related growth of 1.7%. Overall volume grew 1.4%, driving the quarter's sales momentum.
Negative Updates
Consumer Tissue Weakness
Consumer Tissue volumes declined ~2.7% with lower pricing in the quarter; management noted a tougher quarter for Consumer Tissue and a spillover effect from 2025 price dynamics.
Read all updates
Q2-2026 Updates
Positive
Negative
Volume-Driven Sales Growth and Net Sales Increase
Net sales increased by roughly SEK 1.0 billion vs. Q2 last year, with organic sales growth of 0.3% and acquisition-related growth of 1.7%. Overall volume grew 1.4%, driving the quarter's sales momentum.
Read all positive updates
Company Guidance
Guidance focused on higher costs in Q3: the company expects significantly higher COGS (driven by oil‑based materials and energy) and somewhat higher SG&A including A&P versus Q3 2025, even as it continues to enact price increases (already implemented in some markets) with typical lags (about 1–2 quarters in consumer tissue, longer in regulated health care). Key metrics called out: Q2 operating cash flow SEK 2.8bn, net debt/EBITDA ~1.1, Q2 energy headwind ~SEK 40m and Q3 energy hedge roughly 65% for electricity/gas, Q2 benefit from SG&A savings about SEK 100m and COGS savings about SEK 160m, with a target of SEK 1bn+ run‑rate savings by year‑end; the company also noted a Q2 share repurchase of 2.1m shares (~SEK 550m) and reiterated its financial targets of >3% organic growth and at least 15% profit margin.Essity AB Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
68
Positive
Cash Flow
61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 137.57B | 138.49B | 145.55B | 147.15B | 156.17B | 121.87B |
| Gross Profit | 45.82B | 46.12B | 47.13B | 45.13B | 37.23B | 35.09B |
| EBITDA | 25.73B | 25.74B | 26.14B | 20.90B | 15.44B | 20.45B |
| Net Income | 12.12B | 12.66B | 20.89B | 9.55B | 5.57B | 8.62B |
Balance Sheet | ||||||
| Total Assets | 181.53B | 167.12B | 185.28B | 202.99B | 210.60B | 175.05B |
| Cash, Cash Equivalents and Short-Term Investments | 6.87B | 9.75B | 15.62B | 5.19B | 4.50B | 4.09B |
| Total Debt | 42.61B | 38.63B | 43.78B | 60.98B | 71.52B | 56.83B |
| Total Liabilities | 88.36B | 81.08B | 96.54B | 123.59B | 134.04B | 106.54B |
| Stockholders Equity | 92.76B | 85.63B | 88.31B | 70.85B | 67.35B | 59.87B |
Cash Flow | ||||||
| Free Cash Flow | 10.87B | 8.37B | 9.40B | 14.68B | 5.92B | 7.31B |
| Operating Cash Flow | 17.88B | 15.46B | 16.80B | 21.57B | 12.87B | 14.67B |
| Investing Cash Flow | -8.81B | -3.22B | 9.41B | -7.11B | -14.50B | -12.13B |
| Financing Cash Flow | -7.59B | -14.40B | -22.34B | -11.55B | 1.81B | -3.81B |
Essity AB Technical Analysis
Neutral
264.20
Price Trends
264.15
Positive
257.75
Positive
255.59
Positive
Market Momentum
3.66
Positive
49.22
Neutral
41.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ESSITY.B, the sentiment is Neutral. The current price of 264.2 is below the 20-day moving average (MA) of 275.68, above the 50-day MA of 264.15, and above the 200-day MA of 255.59, indicating a neutral trend. The MACD of 3.66 indicates Positive momentum. The RSI at 49.22 is Neutral, neither overbought nor oversold. The STOCH value of 41.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | kr5.09B | 12.38 | 58.76% | 2.54% | 42.70% | 86.19% | |
67 Neutral | kr184.37B | 15.56 | 14.26% | 3.13% | -3.96% | 0.20% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
57 Neutral | kr3.64B | 17.87 | 9.34% | 4.83% | -2.46% | -7.73% | |
51 Neutral | kr102.74M | 30.48 | 5.40% | ― | 9.35% | -59.04% | |
40 Underperform | kr28.92M | -0.34 | -572.32% | ― | -19.45% | 79.90% |
* Consumer Defensive Sector Average
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Essity AB Corporate Events
Essity Maintains Profitability as Volumes Rise but Margins Narrow in Q2 2026
Jul 16, 2026
Essity reported a 2.6% rise in second-quarter net sales to SEK 35.1bn, with organic growth of 0.3% driven by higher volumes and partially offset by lower price and mix. EBITA excluding items affecting comparability was largely unchanged at SEK 4.7...
Essity Advances SEK 3bn Share Buyback With New Week of Class B Repurchases
Jul 13, 2026
Essity has continued executing its previously announced SEK 3bn share buyback program, repurchasing 286,149 Class B shares on Nasdaq Stockholm during the week of July 6–10, 2026. The transactions, carried out by BofA Securities Europe SA on ...
Essity Names Andreas Mattsson Chief Legal Officer as Veteran Counsel Retires
Jul 7, 2026
Essity has named Andreas Mattsson as its new Chief Legal Officer and member of the Executive Management Team, effective January 1, 2027, succeeding long‑serving legal chief Mikael Schmidt, who will retire at the end of 2026. Mattsson joins f...
Essity Advances SEK 3bn Share Buyback, Lifts Treasury Holdings
Jul 6, 2026
Essity AB has continued to execute on its previously announced SEK 3bn share buyback program, repurchasing 290,631 Class B shares on Nasdaq Stockholm during week 27, 2026, at a weighted average price of about SEK 275.54. All transactions were carr...
Essity’s Share Conversion Slightly Reduces Voting Power Concentration
Jun 30, 2026
Essity has reported a shareholder-driven conversion of 1,000,000 Class A shares into Class B shares in June, a move that reduces the total number of votes in the company while leaving the overall share count unchanged. Following the conversion, Es...
Essity steps up SEK 3bn share buyback with additional Class B repurchases
Jun 29, 2026
Essity has continued executing its previously announced SEK 3bn share buyback program, repurchasing 294,782 Class B shares on Nasdaq Stockholm between June 22 and June 26, 2026. The purchases, carried out by BofA Securities Europe on Essity’...
Essity advances SEK 3bn share buyback, lifts treasury stake in Class B shares
Jun 22, 2026
Essity AB has continued executing its previously announced SEK 3bn share buyback program, repurchasing 243,164 Class B shares on Nasdaq Stockholm between June 15 and June 19, 2026, at a weighted average price of SEK 266.17 and a total transaction ...
Essity Sets July Date to Present Q2 2026 Interim Results
Jun 16, 2026
Essity has announced it will publish its interim report for the second quarter of 2026 on July 16 at around 07:00 CET. President and CEO Ulrika Kolsrud and EVP and CFO Fredrik Rystedt will discuss the results in a live webcast and teleconference a...
Essity Steps Up Share Buybacks as Part of SEK 3bn Capital Return Program
Jun 15, 2026
Essity has continued to execute on its SEK 3bn share buyback program, repurchasing 307,819 Class B shares on Nasdaq Stockholm during the week of June 8–12, 2026, at a weighted average price of SEK 261.03 and a total value of about SEK 80.35m...
Essity Advances SEK 3bn Share Buyback With New Class B Repurchases
Jun 8, 2026
Essity has continued its ongoing SEK 3bn share buyback program, repurchasing 319,589 Class B shares on Nasdaq Stockholm during the week of June 1–5, 2026, at a weighted average price of SEK 256.47. The purchases, executed by BofA Securities ...
Essity Secures Seventh Straight CDP A Rating for Climate-Focused Supplier Engagement
Jun 3, 2026
Essity has been recognized for the seventh consecutive year on CDP’s Supplier Engagement A List, underscoring its sustained leadership in climate-focused supply chain management. The hygiene and health group continues to distinguish itself a...
Essity Steps Up Share Buybacks as Part of SEK 3bn Capital Return Program
Jun 1, 2026
Essity has continued executing its SEK 3bn share buyback program, repurchasing 311,814 Class B shares on Nasdaq Stockholm during week 22 of 2026 at a weighted average price of SEK 261.43, for a total of about SEK 81.5m. The purchases, carried out ...
Essity Continues SEK 3bn Share Buyback, Lifts Treasury Share Holdings
May 25, 2026
Essity has continued executing its SEK 3bn share buyback program, repurchasing 324,469 Class B shares on Nasdaq Stockholm during the week of May 18–22, 2026, for a total consideration of about SEK 82.5m at a weighted average price of SEK 254...
Essity advances SEK 3bn share buyback with new Class B repurchases
May 18, 2026
Essity has begun executing a previously announced SEK 3bn share buyback program, repurchasing 198,501 Class B shares on Nasdaq Stockholm during week 20 of 2026 at an average price of SEK 248.14. The transactions, carried out by BofA Securities Eur...
Essity outlines profit-focused growth strategy at Capital Markets Day
May 7, 2026
Essity is a global hygiene and health group with leading positions in categories such as incontinence products, personal care, consumer tissue and professional hygiene, selling under brands including TENA, Tork, Libero, Libresse and Lotus in rough...
Essity Launches Strategic Review of Consumer Tissue Unit to Unlock Value
May 6, 2026
Essity has launched a strategic review of its global Consumer Tissue business, which accounts for nearly a third of group sales and includes toilet paper, household towels, facial tissues and napkins sold under brands such as Lotus, Tempo, Zewa, C...
Essity Cancels Over 11 Million Shares, Adjusts Capital and Voting Structure
Apr 30, 2026
Essity has reduced its share capital by cancelling 11,109,318 of its previously repurchased series B shares, following authorization granted at the company’s Annual General Meeting on March 26, 2026. After the cancellation, Essity has a tota...
Essity Sets Agenda for 2026 Capital Markets Day in Gothenburg
Apr 28, 2026
Essity will host its Capital Markets Day on May 7, 2026, at its Gothenburg office, outlining group strategy and business updates under the theme of accelerating progress through sharper focus and execution. Senior executives, including the Preside...
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...
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.