Essity AB (ESSITY.B) AI Stock Analysis

• Market Cap: $165.08B
• Dividend Yield: 3.44%
• Average Volume (3M): 1.21M
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.15
• Revenue Growth: -5.52%
• EPS Growth: -35.37%
• Country: SE
• Employees: 36,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 4.39
• Shares Outstanding: 634,080,800
• 10 Day Avg. Volume: 1,142,085
• 30 Day Avg. Volume: 1,211,253
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 1.51
• Enterprise Value/Gross Profit: 4.62
• Enterprise Value/Ebitda: 8.42
• 1Y Price Target: $264.39
• Price Target Upside: 9.75% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 70 Outperform
• Price Target: kr279.00 ▲(15.82% Upside)

Essity AB's overall stock score is driven by its stable financial performance and reasonable valuation. While the company has strong profitability metrics and a solid balance sheet, challenges in revenue growth and cash flow generation pose risks. The technical analysis indicates a neutral trend, and the valuation is attractive with a decent dividend yield.

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 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 Money

Essity generates revenue through the sale of its diverse product portfolio across various markets worldwide. The company's key revenue streams include consumer products such as sanitary napkins, baby diapers, and incontinence products, which cater to individual consumers, and professional hygiene products such as paper towels and dispensers sold to businesses and institutions. Essity's revenue model is bolstered by strong brand recognition and customer loyalty, enabling it to maintain premium pricing. Additionally, strategic partnerships with retailers and distributors enhance its market reach. The company also invests in innovation and sustainability initiatives, which not only improve product offerings but can lead to cost savings and increased market share, further contributing to its earnings.

Essity AB Financial Statement Overview

Summary

Essity AB demonstrates a stable financial performance with strong profitability metrics and a solid balance sheet. However, challenges in revenue growth and cash flow generation could impact future growth prospects.

Income Statement

Essity AB's income statement shows a mixed performance. The company has maintained a healthy gross profit margin of around 32-33% over the years, indicating efficient production and pricing strategies. However, the net profit margin has seen a decline in the TTM period to 8.58% from 14.35% in 2024, suggesting increased costs or reduced pricing power. Revenue growth has been negative in recent periods, with a TTM decline of 1.67%, which could be a concern for future profitability. The EBIT and EBITDA margins remain stable, reflecting consistent operational efficiency.

Balance Sheet

The balance sheet of Essity AB reflects a stable financial position with a debt-to-equity ratio improving to 0.51 in the TTM period from 0.86 in 2023, indicating effective debt management. The return on equity (ROE) is strong at 14.82% in the TTM period, showcasing the company's ability to generate profits from shareholders' equity. The equity ratio is also healthy, suggesting a solid capital structure with a good proportion of equity financing.

Cash Flow

Essity AB's cash flow statement indicates some challenges. The free cash flow growth rate has been negative in recent periods, with a TTM decline of 10.86%, which could impact future investment capabilities. The operating cash flow to net income ratio is moderate at 0.40, suggesting that cash generation from operations is sufficient but not robust. The free cash flow to net income ratio is over 50%, indicating that a reasonable portion of net income is being converted into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	143.24B	145.55B	147.15B	156.17B	121.87B	121.75B
Gross Profit	46.78B	47.13B	45.13B	37.23B	35.09B	39.44B
EBITDA	25.69B	26.14B	20.90B	15.44B	20.45B	24.89B
Net Income	12.29B	20.89B	9.55B	5.57B	8.62B	10.23B
Balance Sheet
Total Assets	167.41B	185.28B	202.99B	210.60B	175.05B	154.65B
Cash, Cash Equivalents and Short-Term Investments	6.70B	15.62B	5.19B	4.50B	4.09B	5.15B
Total Debt	41.34B	43.78B	60.98B	66.58B	56.83B	45.88B
Total Liabilities	86.21B	96.54B	123.59B	134.04B	106.54B	91.30B
Stockholders Equity	80.80B	88.31B	70.85B	67.35B	59.87B	54.35B
Cash Flow
Free Cash Flow	7.91B	9.40B	14.68B	5.92B	7.31B	11.21B
Operating Cash Flow	15.04B	16.80B	21.57B	12.87B	14.67B	17.82B
Investing Cash Flow	-5.26B	9.41B	-7.11B	-14.50B	-12.13B	-7.09B
Financing Cash Flow	-16.10B	-22.34B	-11.55B	1.81B	-3.81B	-8.38B

Essity AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 240.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 240.9 is below the 20-day moving average (MA) of 251.63, below the 50-day MA of 249.09, and below the 200-day MA of 271.64, indicating a bearish trend. The MACD of -2.67 indicates Positive momentum. The RSI at 31.02 is Neutral, neither overbought nor oversold. The STOCH value of 8.13 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESSITY.B	70 Outperform	$165.08B	13.74	14.51%	3.44%	-5.52%	-35.37%
DUNI	70 Outperform	4.55B	20.68	7.31%	5.18%	2.62%	-40.22%
CLEM	68 Neutral	127.39M	17.34	0.00%	―	5.89%	10.59%
ZZ.B	63 Neutral	5.60B	27.34	44.16%	2.69%	42.95%	6.06%
LCLEAN	45 Neutral	50.03M	-0.38	-192.79%	―	-3.09%	29.52%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Essity AB Corporate Events

Essity Executes Share Buyback as Part of Strategic Capital Allocation

Essity has repurchased 387,564 Class B shares as part of its SEK 3bn buyback program, which is set to run until the 2026 Annual General Meeting. This initiative, funded by cash flow from operations, is intended to be 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 SEK287.00 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 to Strengthen Market Position

Essity has repurchased 416,394 Class B shares as part of its ongoing SEK 3bn buyback program, which aims to utilize cash flow from operations to enhance capital allocation. This strategic move, in line with EU regulations, is expected to influence Essity’s market position and shareholder value positively.

The most recent analyst rating on ($SE:ESSITY.B) stock is a Buy with a SEK285.00 price target. To see the full list of analyst forecasts on Essity AB stock, see the SE:ESSITY.B Stock Forecast page.

Essity Announces Share Conversion Impacting Voting Structure

Essity announced the conversion of 500,000 Class A shares to Class B shares, reducing the total number of votes in the company to 1,219,317,375. This conversion aligns with shareholder requests and is a standard procedure under Essity’s articles of association. The company currently has a total of 693,054,489 registered shares, with a majority being Class B shares. This conversion may impact voting dynamics within the company, reflecting shareholder preferences and potentially influencing future corporate decisions.

The most recent analyst rating on ($SE:ESSITY.B) stock is a Buy with a SEK285.00 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 Repurchase

Essity has repurchased 390,489 Class B shares as part of its SEK 3 billion buyback program, which will continue until the 2026 Annual General Meeting. This initiative, funded by cash flow from operations, aims to integrate share buybacks as a regular component 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 SEK270.00 price target. To see the full list of analyst forecasts on Essity AB stock, see the SE:ESSITY.B Stock Forecast page.

Essity Advances Shareholder Value with Strategic Buyback

Essity announced the repurchase of 376,116 Class B shares as part of its SEK 3 billion buyback program, which aims to enhance capital allocation through recurring share buybacks. This initiative, financed by cash flow from operations, underscores Essity’s strategic commitment to shareholder value and compliance with EU regulations.

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 Appoints New President for Health & Medical Unit

Essity has appointed Anand Chandarana as the new President of its Business Unit Health & Medical, effective September 1, 2025. With extensive experience in sales, marketing, and innovation, Chandarana is expected to drive the unit’s next phase of profitable growth, enhancing Essity’s market position in health and medical solutions.

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 Repurchase

Essity has repurchased 380,062 Class B shares as part of its SEK 3bn buyback program, which aims to optimize capital allocation and is financed by cash flow from operations. The buyback, conducted on Nasdaq Stockholm, reflects Essity’s strategy to enhance shareholder value and manage its capital structure effectively.

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 Shareholder Value with Class B Share Buyback

Essity announced the repurchase of 365,756 Class B shares as part of its SEK 3 billion buyback program, which aims to enhance capital allocation through recurring share buybacks. This initiative, financed by cash flow from operations, underscores Essity’s strategic focus on shareholder value and compliance with EU regulations.

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.