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Essity

DB:ESWB
Snowflake Description

Mediocre balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ESWB
DB
SEK186B
Market Cap
  1. Home
  2. DE
  3. Household
Company description

Essity AB (publ) develops, produces, and sells personal care, consumer tissue, and professional hygiene products and solutions worldwide. The last earnings update was 36 days ago. More info.


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ESWB Share Price and Events
7 Day Returns
-1.6%
DB:ESWB
-1.4%
Europe Household Products
2.5%
DE Market
1 Year Returns
16.6%
DB:ESWB
-4%
Europe Household Products
-6.7%
DE Market
ESWB Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Essity (ESWB) -1.6% -1.5% 13% 16.6% - -
Europe Household Products -1.4% -3.7% -0.7% -4% -15.7% 14.3%
DE Market 2.5% 3.3% 9.2% -6.7% 9% 13.5%
1 Year Return vs Industry and Market
  • ESWB outperformed the Household Products industry which returned -4% over the past year.
  • ESWB outperformed the Market in Germany which returned -6.7% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

ESWB Value

 Is Essity undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Essity to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Essity.

DB:ESWB Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 18 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:ESWB
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Household Products Unlevered Beta Simply Wall St/ S&P Global 0.33
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.334 (1 + (1- 22%) (29.2%))
0.605
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.8 * 5.96%)
5%

Discounted Cash Flow Calculation for DB:ESWB using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Essity is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:ESWB DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (SEK, Millions) Source Present Value
Discounted (@ 5%)
2019 9,604.24 Analyst x13 9,147.25
2020 11,182.80 Analyst x13 10,143.90
2021 11,928.39 Analyst x10 10,305.37
2022 12,475.65 Est @ 4.59% 10,265.32
2023 12,884.85 Est @ 3.28% 10,097.54
2024 13,189.49 Est @ 2.36% 9,844.45
2025 13,416.81 Est @ 1.72% 9,537.62
2026 13,587.85 Est @ 1.27% 9,199.59
2027 13,718.39 Est @ 0.96% 8,846.03
2028 13,820.04 Est @ 0.74% 8,487.54
Present value of next 10 years cash flows SEK95,874.60
DB:ESWB DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= SEK13,820.04 × (1 + 0.23%) ÷ (5% – 0.23%)
SEK290,510.66
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= SEK290,510.66 ÷ (1 + 5%)10
SEK178,416.30
DB:ESWB Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= SEK95,874.60 + SEK178,416.30
SEK274,290.90
Equity Value per Share
(SEK)
= Total value / Shares Outstanding
= SEK274,290.90 / 702.34
SEK390.54
DB:ESWB Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:ESWB represents 0.0949x of OM:ESSITY B
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.0949x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (SEK) x Listing Adjustment Factor
= SEK 390.54 x 0.0949
€37.06
Value per share (EUR) From above. €37.06
Current discount Discount to share price of €25.13
= -1 x (€25.13 - €37.06) / €37.06
32.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Essity is available for.
Intrinsic value
32%
Share price is €25.13 vs Future cash flow value of €37.06
Current Discount Checks
For Essity to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Essity's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Essity's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Essity's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Essity's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:ESWB PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in SEK SEK11.23
OM:ESSITY B Share Price ** OM (2019-04-18) in SEK SEK264.8
Europe Household Products Industry PE Ratio Median Figure of 5 Publicly-Listed Household Products Companies 17.42x
Germany Market PE Ratio Median Figure of 421 Publicly-Listed Companies 19.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Essity.

DB:ESWB PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= OM:ESSITY B Share Price ÷ EPS (both in SEK)

= 264.8 ÷ 11.23

23.58x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Essity is overvalued based on earnings compared to the Europe Household Products industry average.
  • Essity is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Essity's expected growth come at a high price?
Raw Data
DB:ESWB PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 23.58x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts
12.4%per year
Europe Household Products Industry PEG Ratio Median Figure of 5 Publicly-Listed Household Products Companies 1.91x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

DB:ESWB PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 23.58x ÷ 12.4%

1.9x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Essity is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Essity's assets?
Raw Data
DB:ESWB PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in SEK SEK67.12
OM:ESSITY B Share Price * OM (2019-04-18) in SEK SEK264.8
Europe Household Products Industry PB Ratio Median Figure of 8 Publicly-Listed Household Products Companies 2.38x
Germany Market PB Ratio Median Figure of 570 Publicly-Listed Companies 1.87x
DB:ESWB PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= OM:ESSITY B Share Price ÷ Book Value per Share (both in SEK)

= 264.8 ÷ 67.12

3.95x

* Primary Listing of Essity.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Essity is overvalued based on assets compared to the Europe Household Products industry average.
X
Value checks
We assess Essity's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Household Products industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Household Products industry average (and greater than 0)? (1 check)
  5. Essity has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ESWB Future Performance

 How is Essity expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
12.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Essity expected to grow at an attractive rate?
  • Essity's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Essity's earnings growth is expected to exceed the Germany market average.
  • Essity's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:ESWB Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:ESWB Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts 12.4%
DB:ESWB Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 18 Analysts 3.6%
Europe Household Products Industry Earnings Growth Rate Market Cap Weighted Average 7%
Europe Household Products Industry Revenue Growth Rate Market Cap Weighted Average 3.3%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.7%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:ESWB Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
All numbers in SEK Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:ESWB Future Estimates Data
Date (Data in SEK Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 131,014 1
2021-12-31 132,870 19,765 11,377 16
2020-12-31 129,078 18,395 10,757 18
2019-12-31 125,016 16,545 9,149 18
DB:ESWB Past Financials Data
Date (Data in SEK Millions) Revenue Cash Flow Net Income *
2018-12-31 118,500 13,160 7,886
2018-09-30 116,052 12,471 7,372
2018-06-30 113,583 12,432 8,474
2018-03-31 112,017 12,246 8,116
2017-12-31 109,265 12,729 8,116
2017-09-30 107,373 12,884 6,212
2017-06-30 105,430 13,113 5,853
2017-03-31 102,258 13,968 3,748
2016-12-31 101,238 12,778 3,800

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Essity's earnings are expected to grow by 12.4% yearly, however this is not considered high growth (20% yearly).
  • Essity's revenue is expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:ESWB Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below

All data from Essity Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:ESWB Future Estimates Data
Date (Data in SEK Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 16.23 18.95 12.72 11.00
2020-12-31 15.34 18.11 12.28 13.00
2019-12-31 13.06 14.90 10.65 13.00
DB:ESWB Past Financials Data
Date (Data in SEK Millions) EPS *
2018-12-31 11.23
2018-09-30 10.50
2018-06-30 12.07
2018-03-31 11.56
2017-12-31 11.56
2017-09-30 8.85
2017-06-30 8.33
2017-03-31
2016-12-31 5.41

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Essity is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Essity's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Essity has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ESWB Past Performance

  How has Essity performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Essity's growth in the last year to its industry (Household Products).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Essity's year on year earnings growth rate has been positive over the past 5 years.
  • Essity's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Essity's 1-year earnings growth is negative, it can't be compared to the Europe Household Products industry average.
Earnings and Revenue History
Essity's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Essity Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:ESWB Past Revenue, Cash Flow and Net Income Data
Date (Data in SEK Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 118,500.00 7,886.00 20,570.00
2018-09-30 116,052.00 7,372.00 20,320.00
2018-06-30 113,583.00 8,474.00 19,934.00
2018-03-31 112,017.00 8,116.00 19,764.00
2017-12-31 109,265.00 8,116.00 19,130.00
2017-09-30 107,373.00 6,212.00 18,769.00
2017-06-30 105,430.00 5,853.00 18,217.00
2017-03-31 102,258.00 3,748.00 17,335.00
2016-12-31 101,238.00 3,800.00 16,965.00
2015-12-31 98,519.00 6,129.00 16,216.00
2014-12-31 87,997.00 5,212.00 14,527.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Essity has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Essity used its assets more efficiently than the Europe Household Products industry average last year based on Return on Assets.
  • Essity's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Essity's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Household Products industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Essity has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ESWB Health

 How is Essity's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Essity's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Essity is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Essity's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Essity's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Essity Company Filings, last reported 3 months ago.

DB:ESWB Past Debt and Equity Data
Date (Data in SEK Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 54,899.00 54,327.00 3,030.00
2018-09-30 53,638.00 56,213.00 3,306.00
2018-06-30 53,271.00 59,677.00 4,041.00
2018-03-31 53,863.00 56,992.00 6,442.00
2017-12-31 49,570.00 54,838.00 4,126.00
2017-09-30 45,302.00 55,530.00 5,238.00
2017-06-30 44,580.00 58,660.00 5,930.00
2017-03-31 43,108.00 62,146.00 31,134.00
2016-12-31 39,580.00 36,873.00 4,263.00
2015-12-31 48,275.00 34,717.00 4,828.00
2014-12-31 44,925.00 40,787.00 3,808.00
  • Essity's level of debt (99%) compared to net worth is high (greater than 40%).
  • Unable to establish if Essity's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (24.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 11x coverage).
X
Financial health checks
We assess Essity's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Essity has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ESWB Dividends

 What is Essity's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.17%
Current annual income from Essity dividends. Estimated to be 2.69% next year.
If you bought €2,000 of Essity shares you are expected to receive €43 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Essity's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.44%).
  • Essity's dividend is below the markets top 25% of dividend payers in Germany (3.74%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:ESWB Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
Europe Household Products Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 2.5%
Germany Market Average Dividend Yield Market Cap Weighted Average of 324 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:ESWB Future Dividends Estimate Data
Date (Data in SEK) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 7.40 1.00
2021-12-31 7.78 16.00
2020-12-31 7.25 18.00
2019-12-31 6.40 18.00
DB:ESWB Past Annualized Dividends Data
Date (Data in SEK) Dividend per share (annual) Avg. Yield (%)
2019-02-25 5.750 2.175
2018-03-08 5.750 2.541

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether Essity has stable dividend payments.
  • Essity only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of Essity's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).
X
Income/ dividend checks
We assess Essity's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Essity afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Essity has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ESWB Management

 What is the CEO of Essity's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Magnus Groth
COMPENSATION SEK20,443,383
AGE 55
TENURE AS CEO 2.3 years
CEO Bio

Mr. Magnus Groth, MBA, MSc Econ, ME, has been President and Chief Executive Officer of Essity Aktiebolag (publ) since 2017 and has been its Director since 2016. Mr. Groth served as the Chief Executive Officer and President of Svenska Cellulosa Aktiebolaget SCA (publ) from March 1, 2015 to June 15, 2017. Mr. Groth served as the President of Consumer Goods Europe at Svenska Cellulosa Aktiebolaget, SCA from January 1, 2012 to 2015. Mr. Groth was employed at Essity Aktiebolag (publ) in 2011. Mr. Groth served as the President of SCA Tissue Europe at SCA Hygiene Products SE and Svenska Cellulosa Aktiebolaget, SCA from April 15, 2011 to January 1, 2012. He served as the Chief Executive Officer and President of Studsvik AB from September 1, 2005 to August 31, 2011. He served as an Executive Vice President and Head of Group Function Business Development of Vattenfall AB until August 31, 2005 and as Senior Vice President of Business Development from 2001 to 2005. He has experience of senior positions in such companies as Boston Consulting Group and Vattenfall. He has been an Independent Director of Acando AB (publ.) since 2009 and Bosch Rexroth Mellansel AB since 2007. He serves as a Director of Pilum AB. He served as a Director of Svenska Cellulosa Aktiebolaget SCA (publ) from 2015 to May 17, 2017. Mr. Groth received Master of Science in Avionics and naval technology from Royal Institute of Technology in 1987 and MS in Economics and Business from Stockholm School of Economics in 1992.

CEO Compensation
  • Magnus's compensation has been consistent with company performance over the past year.
  • Magnus's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Essity management team in years:

4.3
Average Tenure
53
Average Age
  • The tenure for the Essity management team is about average.
Management Team

Magnus Groth

TITLE
President
COMPENSATION
SEK20M
AGE
55
TENURE
2.3 yrs

Fredrik Rystedt

TITLE
CFO, Executive VP & Head of Group Function Finance
AGE
55
TENURE
2.3 yrs

Johan Karlsson

TITLE
Vice President of Investor Relations

Mikael Schmidt

TITLE
Senior VP of Group Function Legal Affairs
AGE
58
TENURE
7.3 yrs

Karl Stoltz

TITLE
Manager of Media Relations

Anna Sävinger-Åslund

TITLE
Senior Vice President of Group Function Human Resources
AGE
49
TENURE
4.3 yrs

Don Lewis

TITLE
President of Professional Hygiene
AGE
57
TENURE
7.3 yrs

Volker Zöller

TITLE
President of Consumer Goods
AGE
51
TENURE
4.3 yrs

Pablo Fuentes

TITLE
President of Latin America
AGE
45
TENURE
3.3 yrs

Donato Giorgio

TITLE
President of Global Manufacturing
AGE
45
Board of Directors Tenure

Average tenure and age of the Essity board of directors in years:

3.3
Average Tenure
57
Average Age
  • The tenure for the Essity board of directors is about average.
Board of Directors

Pär Boman

TITLE
Chairman of the Board
COMPENSATION
SEK3M
AGE
57
TENURE
3.3 yrs

Magnus Groth

TITLE
President
COMPENSATION
SEK20M
AGE
55
TENURE
3.3 yrs

Barbara Thoralfsson

TITLE
Non-Executive Director
COMPENSATION
SEK1M
AGE
59
TENURE
3.3 yrs

Ewa Björling

TITLE
Director
COMPENSATION
SEK740K
AGE
57
TENURE
3.3 yrs

Maija-Liisa Friman

TITLE
Director
COMPENSATION
SEK740K
AGE
66
TENURE
3.3 yrs

Annemarie Gardshol

TITLE
Director
COMPENSATION
SEK740K
AGE
51
TENURE
3.3 yrs

Louise Svanberg

TITLE
Director
COMPENSATION
SEK851K
AGE
60
TENURE
3.3 yrs

Bert Ake Nordberg

TITLE
Director
COMPENSATION
SEK1M
AGE
62
TENURE
3.3 yrs

Tina Elvingsson Engfors

TITLE
Employee Representative Director
AGE
51
TENURE
2.3 yrs

Örjan Svensson

TITLE
Employee Representative Director
AGE
55
TENURE
2.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
28. Dec 18 Buy Annemarie Gardshol Individual 27. Dec 18 27. Dec 18 400 €218.20 €87,280
30. Oct 18 Buy Kersti Strandqvist Individual 29. Oct 18 29. Oct 18 1,000 €204.99 €204,990
25. May 18 Buy Carl Fredrik Rystedt Individual 25. May 18 25. May 18 3,000 €235.20 €705,600
24. May 18 Sell Mikael Schmidt Individual 24. May 18 24. May 18 -4,500 €237.40 €-1,068,300
24. May 18 Buy Mikael Schmidt Individual 24. May 18 24. May 18 9,500 €237.70 €2,258,150
21. May 18 Buy Anna Aslund Individual 18. May 18 18. May 18 1,260 €238.10 €300,006
14. May 18 Buy Georg Schmundt-Thomas Individual 11. May 18 11. May 18 3,300 €232.63 €766,966
08. May 18 Buy Volker Zöller Individual 08. May 18 08. May 18 2,225 €230.50 €512,863
30. Apr 18 Buy Donato Giorgio Individual 29. Apr 18 29. Apr 18 2,800 €226.05 €632,928
X
Management checks
We assess Essity's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Essity has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ESWB News

Simply Wall St News

ESWB Company Info

Description

Essity AB (publ) develops, produces, and sells personal care, consumer tissue, and professional hygiene products and solutions worldwide. The company’s personal care products include incontinence products, including skincare products, wet wipes, and wash gloves; baby and pant diapers, as well as baby care products, such as wet wipes, shampoos, lotions, and baby oils; pads, panty liners, tampons, intimate soaps, and intimate wipes; and wound care, vascular, and orthopedics products and services. Its personal care products also comprise medical solutions that include surgical tapes, retention bandages, surgical/post-operation dressings, adhesive bandages and plasters, and advanced wound care products; phlebology products, such as compression stockings, medical compression garments, and lymphology products; and fracture management products that include cast tapes, splinting materials, casting accessories, and physiotherapy and orthopedic soft goods and braces. In addition, the company offers consumer tissue products, including toilet paper, household towels, handkerchiefs, facial tissues, wet wipes, and napkins. Further, it provides hygiene solutions that include toilet paper, paper hand towels, napkins, hand soaps and lotions, hand sanitizers, dispensers, cleaning and wiping products, and Internet of Things sensor technology products, 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 personal care products primarily under the TENA, Jobst, Leukoplast, Libero, Libresse, Nosotras, and Saba, as well as other retailer’s brands; consumer tissue products primarily under the Edet, Lotus, Regio, Tempo, Vinda and Zewa, and retailer brands; and professional hygiene products under the TORK brand. Essity AB (publ) was founded in 1849 and is headquartered in Stockholm, Sweden.

Details
Name: Essity AB (publ)
ESWB
Exchange: DB
Founded: 1849
SEK17,785,579,445
702,342,489
Website: http://www.essity.com
Address: Essity AB (publ)
Klarabergsviadukten 63,
PO Box 200,
Stockholm,
Stockholm County, 101 23,
Sweden
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
OM ESSITY B Class B Shares OMX Nordic Exchange Stockholm SE SEK 15. Jun 2017
OTCPK ETTY.F Class B Shares Pink Sheets LLC US USD 15. Jun 2017
DB ESWB Class B Shares Deutsche Boerse AG DE EUR 15. Jun 2017
LSE 0RQD Class B Shares London Stock Exchange GB SEK 15. Jun 2017
BATS-CHIXE ESSIBS Class B Shares BATS 'Chi-X Europe' GB SEK 15. Jun 2017
OTCPK ESSY.Y SPONSORED ADR Pink Sheets LLC US USD 21. Jun 2017
OM ESSITY A Class A Shares OMX Nordic Exchange Stockholm SE SEK 15. Jun 2017
DB ESW Class A Shares Deutsche Boerse AG DE EUR 15. Jun 2017
DB ESWA SPONSORED ADR Deutsche Boerse AG DE EUR 21. Jun 2017
LSE 0RQC Class A Shares London Stock Exchange GB SEK 15. Jun 2017
BATS-CHIXE ESSIAS Class A Shares BATS 'Chi-X Europe' GB SEK 15. Jun 2017
Number of employees
Current staff
Staff numbers
47,000
Essity employees.
Industry
Household Products
Household
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/18 22:34
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/03/13
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.