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Essity Aktiebolag
(ESSITY.A)
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Rating:69Neutral
Price Target:
kr302.00
▲(15.71% Upside)
Action:Downgraded
Date:10/23/26
The score is driven primarily by improved financial quality (stronger margins vs 2022 and meaningfully lower leverage), supported by constructive technical trend and reasonable valuation with a ~3.2% dividend. Offsetting these positives, the latest earnings call highlights near-term margin pressure from sharply higher input costs and slightly negative organic growth, which tempers the overall outlook.
Positive Factors
Improved Balance Sheet
Essity has materially reduced leverage while expanding its equity base, strengthening financial resilience. Lower debt dependence should preserve flexibility to fund innovation, absorb operating volatility, and pursue strategic growth without placing excessive pressure on future cash flows.
Negative Factors
Muted Revenue Growth
A prolonged lack of organic revenue growth limits operating leverage and makes earnings improvement more dependent on pricing, savings, or acquisitions. Flat demand also reduces the company’s ability to absorb inflation while protecting margins across its broad product portfolio.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Balance Sheet
Essity has materially reduced leverage while expanding its equity base, strengthening financial resilience. Lower debt dependence should preserve flexibility to fund innovation, absorb operating volatility, and pursue strategic growth without placing excessive pressure on future cash flows.
Read all positive factors
Essity Aktiebolag (ESSITY.A) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr185.64B
Dividend Yield3.19%
Average Volume (3M)7.84K
Price to Earnings (P/E)16.8
Beta (1Y)0.42
Revenue Growth-1.84%
EPS Growth-8.27%
CountrySE
Employees36,375
SectorGeneral
Sector StrengthN/A
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)16.33
Shares Outstanding53,963,040
10 Day Avg. Volume10,753
30 Day Avg. Volume7,838
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
kr230.00Price Target Upside-11.88% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
EPS Forecast (FY)18.54
Revenue Forecast (FY)kr141.63B
Essity Aktiebolag Business Overview & Revenue Model
Company Description
Essity AB (publ) is a global enterprise based in Stockholm, Sweden, established in 1849, specializing in the creation, manufacturing, and distribution of hygiene and health products and related services. Its diverse portfolio is structured across ...
How the Company Makes Money
Essity makes money primarily by selling hygiene and health products to a mix of end-consumers, healthcare providers, distributors, and professional customers. Its revenue model is largely product-sales driven, supported by brand portfolios and rec...
Essity Aktiebolag Earnings Call Summary
Earnings Call Date:Oct 22, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 21, 2027
Earnings Call Sentiment Positive
The call conveyed cautious optimism. Essity demonstrated stable group volumes, reported sales growth, strong cash flow, a solid balance sheet, market-share gains and progress in higher-margin categories, acquisitions and cost savings. However, these positives were offset by negative organic sales growth, substantial COGS inflation, margin contraction, declining Consumer Tissue and Professional Hygiene volumes, and expectations for further cost pressure in Q4. Management remained confident in pricing actions, cost savings and strategic initiatives, but described the near-term market and cost environment as challenging.Positive Updates
Resilient Overall Performance
The third quarter was characterized by resilience and stable performance in a challenging market. Group volumes were stable overall, supported by volume-led growth in higher-margin categories and segments.
Negative Updates
Negative Organic Sales Growth
Organic sales growth was slightly negative at minus 0.3%, despite reported net sales growth of 4.1%.
Read all updates
Q3-2026 Updates
Positive
Negative
Resilient Overall Performance
The third quarter was characterized by resilience and stable performance in a challenging market. Group volumes were stable overall, supported by volume-led growth in higher-margin categories and segments.
Read all positive updates
Company Guidance
For Q4, Essity expects “significantly higher COGS” both year-on-year and sequentially, driven by raw material and energy costs; SG&A excluding A&P is expected to be “roughly on the same level or actually even slightly lower” than Q4 of 2025 and sequentially, with savings of “roughly about SEK 150 million or slightly more than SEK 150 million” in Q3 and Q4 savings expected to be “even bigger,” while A&P is expected to be “slightly higher” than this quarter. The company will continue announcing and negotiating new price increases, with Consumer Tissue taking “roughly 2 quarters to compensate”; the 1.2% volume impact from Latin American factory footprint optimization is expected to remain in Q4, Q1 and Q2 of 2027; Medical volume growth is anticipated to come back in Q4, although this is “difficult to guarantee”; the Brazilian Feminine Care transaction is expected to close by Q2 '27; and tariff impacts were estimated at “approximately about 60 basis points” for Professional Hygiene and “[ 20%, 30% ] basis points” for the group as a whole.Essity Aktiebolag Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
74
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 138.99B | 138.49B | 145.55B | 147.15B | 156.17B | 121.87B |
| Gross Profit | 45.04B | 46.12B | 47.13B | 45.13B | 37.23B | 35.09B |
| EBITDA | 24.43B | 25.74B | 26.14B | 21.77B | 15.44B | 19.40B |
| Net Income | 11.12B | 12.66B | 20.89B | 9.55B | 5.57B | 8.62B |
Balance Sheet | ||||||
| Total Assets | 185.00B | 167.12B | 185.28B | 202.99B | 210.60B | 175.05B |
| Cash, Cash Equivalents and Short-Term Investments | 6.56B | 9.75B | 15.62B | 6.94B | 4.50B | 4.09B |
| Total Debt | 39.24B | 37.92B | 43.78B | 60.98B | 71.52B | 58.19B |
| Total Liabilities | 87.36B | 81.08B | 96.54B | 123.59B | 134.04B | 106.54B |
| Stockholders Equity | 97.20B | 85.63B | 88.31B | 70.85B | 67.35B | 59.87B |
Cash Flow | ||||||
| Free Cash Flow | 11.92B | 8.37B | 9.40B | 14.68B | 7.44B | 7.31B |
| Operating Cash Flow | 18.71B | 15.46B | 16.80B | 21.57B | 12.87B | 14.67B |
| Investing Cash Flow | -8.94B | -3.22B | 9.41B | -7.11B | -14.50B | -12.13B |
| Financing Cash Flow | -10.66B | -14.40B | -22.34B | -11.55B | 1.81B | -3.81B |
Essity Aktiebolag Technical Analysis
Positive
261.00
Price Trends
268.71
Positive
272.24
Positive
263.48
Positive
Market Momentum
2.71
Negative
60.66
Neutral
28.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ESSITY.A, the sentiment is Positive. The current price of 261 is below the 20-day moving average (MA) of 269.33, below the 50-day MA of 268.71, and below the 200-day MA of 263.48, indicating a bullish trend. The MACD of 2.71 indicates Negative momentum. The RSI at 60.66 is Neutral, neither overbought nor oversold. The STOCH value of 28.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:ESSITY.A.
Essity Aktiebolag Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | kr185.64B | 16.78 | ― | 3.19% | -1.84% | -8.27% | |
67 Neutral | kr74.47B | 26.31 | 9.13% | 1.74% | -3.90% | 37.73% | |
62 Neutral | kr85.97B | 39.90 | 2.14% | 2.45% | -3.07% | -38.98% | |
61 Neutral | kr21.43B | 92.63 | 0.84% | 2.32% | -9.00% | -80.79% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | kr84.48B | 13.28 | 5.30% | 1.37% | -3.82% | ― | |
48 Neutral | kr3.20B | 24.46 | 3.91% | 7.35% | -2.46% | -59.94% |
* General Sector Average
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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.