OM:ESSITY A

Stock Analysis Report

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Executive Summary

Essity AB (publ) develops, produces, and sells personal care, consumer tissue, and professional hygiene products and solutions worldwide. More Details


Snowflake Analysis

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has Essity's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ESSITY A is less volatile than 75% of Swedish stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ESSITY A's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

4.5%

ESSITY A

4.6%

SE Household Products

1.1%

SE Market


1 Year Return

-11.9%

ESSITY A

2.1%

SE Household Products

30.9%

SE Market

Return vs Industry: ESSITY A underperformed the Swedish Household Products industry which returned -0.3% over the past year.

Return vs Market: ESSITY A underperformed the Swedish Market which returned 28.3% over the past year.


Shareholder returns

ESSITY AIndustryMarket
7 Day4.5%4.6%1.1%
30 Day-3.4%-0.6%0.9%
90 Day2.9%-2.2%8.8%
1 Year-10.0%-11.9%4.6%2.1%34.1%30.9%
3 Year24.5%15.9%2.7%-4.4%54.6%35.6%
5 Yearn/a4.3%-6.5%84.9%45.3%

Long-Term Price Volatility Vs. Market

How volatile is Essity's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Essity undervalued compared to its fair value and its price relative to the market?

44.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ESSITY A (SEK269) is trading below our estimate of fair value (SEK484.17)

Significantly Below Fair Value: ESSITY A is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ESSITY A is poor value based on its PE Ratio (18.3x) compared to the XE Household Products industry average (18.1x).

PE vs Market: ESSITY A is good value based on its PE Ratio (18.3x) compared to the Swedish market (23.9x).


Price to Earnings Growth Ratio

PEG Ratio: ESSITY A is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: ESSITY A is overvalued based on its PB Ratio (3.4x) compared to the XE Household Products industry average (2.2x).


Next Steps

Future Growth

How is Essity forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

5.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ESSITY A's forecast earnings growth (5.1% per year) is above the savings rate (0.4%).

Earnings vs Market: ESSITY A's earnings (5.1% per year) are forecast to grow slower than the Swedish market (8.3% per year).

High Growth Earnings: ESSITY A's earnings are forecast to grow, but not significantly.

Revenue vs Market: ESSITY A's revenue (2.3% per year) is forecast to grow slower than the Swedish market (3.4% per year).

High Growth Revenue: ESSITY A's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ESSITY A's Return on Equity is forecast to be low in 3 years time (16.9%).


Next Steps

Past Performance

How has Essity performed over the past 5 years?

16.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ESSITY A has high quality earnings.

Growing Profit Margin: ESSITY A's current net profit margins (8.4%) are higher than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: ESSITY A's earnings have grown by 16.6% per year over the past 5 years.

Accelerating Growth: ESSITY A's earnings growth over the past year (10.8%) is below its 5-year average (16.6% per year).

Earnings vs Industry: ESSITY A earnings growth over the past year (10.8%) underperformed the Household Products industry 10.8%.


Return on Equity

High ROE: ESSITY A's Return on Equity (18.5%) is considered low.


Next Steps

Financial Health

How is Essity's financial position?


Financial Position Analysis

Short Term Liabilities: ESSITY A's short term assets (SEK43.1B) exceed its short term liabilities (SEK41.1B).

Long Term Liabilities: ESSITY A's short term assets (SEK43.1B) do not cover its long term liabilities (SEK50.2B).


Debt to Equity History and Analysis

Debt Level: ESSITY A's debt to equity ratio (68.5%) is considered high.

Reducing Debt: ESSITY A's debt to equity ratio has reduced from 72% to 68.5% over the past 5 years.

Debt Coverage: ESSITY A's debt is well covered by operating cash flow (41.1%).

Interest Coverage: ESSITY A's interest payments on its debt are well covered by EBIT (17.8x coverage).


Balance Sheet


Next Steps

Dividend

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

2.53%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: ESSITY A's dividend (2.53%) is higher than the bottom 25% of dividend payers in the Swedish market (1.23%).

High Dividend: ESSITY A's dividend (2.53%) is low compared to the top 25% of dividend payers in the Swedish market (3.59%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ESSITY A has been paying a dividend for less than 10 years.

Growing Dividend: ESSITY A's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.3%), ESSITY A's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ESSITY A's dividends in 3 years are forecast to be well covered by earnings (45.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.2yrs

Average management tenure


CEO

Magnus Groth (57 yo)

4.17yrs

Tenure

kr27,051,682

Compensation

Mr. Magnus Groth, MBA, MSc Econ, ME, has been President and Chief Executive Officer of Essity AB (publ) (formerly known as Essity Aktiebolag (publ)) since 2017 and has been its Director since 2016. Mr. Gro...


CEO Compensation Analysis

Compensation vs Market: Magnus's total compensation ($USD3.21M) is above average for companies of similar size in the Swedish market ($USD2.25M).

Compensation vs Earnings: Magnus's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Magnus Groth
President4.17yrskr27.05m0.0094%
SEK 17.5m
Carl Fredrik Rystedt
CFO & Executive VP4.17yrsno data0.0032%
SEK 6.0m
Johan Karlsson
Vice President of Investor Relations - Group Function Communicationsno datano datano data
Mikael Schmidt
Senior VP of Group Function Legal Affairs9.17yrsno data0.0044%
SEK 8.2m
Per Lorentz
Vice President of Corporate Communications - Group Function Communicationsno datano datano data
Karl Stoltz
Manager of Media Relationsno datano datano data
Anna Sävinger-Åslund
Senior Vice President of Group Function Human Resources6.17yrsno datano data
Donald Lewis
President of Professional Hygiene9.17yrsno datano data
Volker Zöller
President of Consumer Goods6.17yrsno data0.0017%
SEK 3.2m
Pablo Fuentes
President of Latin America5.17yrsno data0.0014%
SEK 2.7m
Donato Giorgio
President of Global Manufacturingno datano data0.0015%
SEK 2.8m
Ulrika Kolsrud
President of Health & Medical Solutionsno datano data0.0012%
SEK 2.3m

6.2yrs

Average Tenure

53yo

Average Age

Experienced Management: ESSITY A's management team is seasoned and experienced (6.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Magnus Groth
President4.17yrskr27.05m0.0094%
SEK 17.5m
Bert Ake Nordberg
Independent Director5.17yrskr1.16m0.0024%
SEK 4.5m
Maija-Liisa Friman
Independent Director5.17yrskr770.00kno data
Lars Sorensen
Independent Director4.17yrskr770.00kno data
Annemarie Gardshol
Independent Director5.17yrskr770.00k0.00046%
SEK 859.9k
Par Boman
Independent Chairman of the Board5.17yrskr2.74m0.00071%
SEK 1.3m
Barbara Milian Thoralfsson
Independent Non-Executive Director5.17yrskr1.15mno data
Örjan Svensson
Employee Representative Director4.17yrsno data0.000020%
SEK 37.4k
Louise Svanberg
Independent Director5.17yrskr885.00k0.0041%
SEK 7.6m
Ewa Björling
Independent Director5.17yrskr770.00kno data
Niclas Thulin
Employee Representative Director4.17yrsno datano data
Susanna Lind
Employee Representative Director1.67yrsno data0.000010%
SEK 18.7k

5.2yrs

Average Tenure

59yo

Average Age

Experienced Board: ESSITY A's board of directors are considered experienced (5.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Essity AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Essity AB (publ)
  • Ticker: ESSITY A
  • Exchange: OM
  • Founded: 1849
  • Industry: Household Products
  • Sector: Household
  • Market Cap: kr186.944b
  • Shares outstanding: 702.34m
  • Website: https://www.essity.com

Number of Employees


Location

  • Essity AB (publ)
  • Waterfront Building
  • Klarabergsviadukten 63
  • Stockholm
  • Stockholm County
  • 101 23
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ESSITY AOM (OMX Nordic Exchange Stockholm)Class A SharesSESEKJun 2017
ESSITY BOM (OMX Nordic Exchange Stockholm)YesClass B SharesSESEKJun 2017
0RQCLSE (London Stock Exchange)Class A SharesGBSEKJun 2017
0RQDLSE (London Stock Exchange)YesClass B SharesGBSEKJun 2017
ESSIBSBATS-CHIXE (BATS 'Chi-X Europe')YesClass B SharesGBSEKJun 2017
ESWBDB (Deutsche Boerse AG)YesClass B SharesDEEURJun 2017
ESWDB (Deutsche Boerse AG)Class A SharesDEEURJun 2017
ESSIASBATS-CHIXE (BATS 'Chi-X Europe')Class A SharesGBSEKJun 2017
ETTY.FOTCPK (Pink Sheets LLC)YesClass B SharesUSUSDJun 2017
ESSITYB NBMV (Bolsa Mexicana de Valores)YesClass B SharesMXMXNJun 2017

Biography

Essity AB (publ) develops, produces, and sells personal care, consumer tissue, and professional hygiene products and solutions worldwide. It offers personal care products comprising incontinence products, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/05 20:23
End of Day Share Price2021/03/05 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.