| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 3/6 |
| Past Performance | 2/6 |
| Financial Health | 4/6 |
| Dividends | 3/6 |
ESSITY B Stock Overview
Essity AB (publ) develops, produces, and sells hygiene and health products and services worldwide.
Essity Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | kr264.40 |
| 52 Week High | kr310.00 |
| 52 Week Low | kr211.90 |
| Beta | 0.24 |
| 1 Month Change | 4.14% |
| 3 Month Change | 18.51% |
| 1 Year Change | -5.97% |
| 3 Year Change | -9.70% |
| 5 Year Change | 13.23% |
| Change since IPO | 6.40% |
Recent News & Updates
Returns On Capital Signal Tricky Times Ahead For Essity (STO:ESSITY B)
What trends should we look for it we want to identify stocks that can multiply in value over the long term? One common...
Does Essity (STO:ESSITY B) Have A Healthy Balance Sheet?
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
Shareholder Returns
| ESSITY B | SE Household Products | SE Market | |
|---|---|---|---|
| 7D | 4.3% | 1.9% | 0.2% |
| 1Y | -6.0% | -14.1% | -22.4% |
Return vs Industry: ESSITY B exceeded the Swedish Household Products industry which returned -14.2% over the past year.
Return vs Market: ESSITY B exceeded the Swedish Market which returned -20.9% over the past year.
Price Volatility
| ESSITY B volatility | |
|---|---|
| ESSITY B Average Weekly Movement | 5.0% |
| Household Products Industry Average Movement | 7.2% |
| Market Average Movement | 7.4% |
| 10% most volatile stocks in SE Market | 12.1% |
| 10% least volatile stocks in SE Market | 4.7% |
Stable Share Price: ESSITY B is less volatile than 75% of Swedish stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: ESSITY B's weekly volatility (5%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1849 | 46,000 | Magnus Groth | https://www.essity.com |
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.
Essity Fundamentals Summary
| ESSITY B fundamental statistics | |
|---|---|
| Market Cap | kr185.64b |
| Earnings (TTM) | kr6.79b |
| Revenue (TTM) | kr128.64b |
27.3x
P/E Ratio1.4x
P/S RatioIs ESSITY B overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| ESSITY B income statement (TTM) | |
|---|---|
| Revenue | kr128.64b |
| Cost of Revenue | kr93.57b |
| Gross Profit | kr35.07b |
| Other Expenses | kr28.28b |
| Earnings | kr6.79b |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
Jul 21, 2022
| Earnings per share (EPS) | 9.67 |
| Gross Margin | 27.26% |
| Net Profit Margin | 5.28% |
| Debt/Equity Ratio | 95.4% |
How did ESSITY B perform over the long term?
See historical performance and comparisonDividends
2.6%
Current Dividend Yield72%
Payout RatioValuation
Is ESSITY B undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation Score 4/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio
Key Valuation Metric
Which metric is best to use when looking at relative valuation for ESSITY B?
Other financial metrics that can be useful for relative valuation.
| What is ESSITY B's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | kr185.64b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 2x |
| Enterprise Value/EBITDA | 13.8x |
| PEG Ratio | 1.3x |
Price to Earnings Ratio vs Peers
How does ESSITY B's PE Ratio compare to its peers?
| ESSITY B PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 31x | ||
CLX Clorox | 36.8x | 17.2% | US$17.0b |
8113 Unicharm | 39.4x | 7.9% | JP¥2.7t |
UNVR Unilever Indonesia | 31.7x | 5.0% | Rp192.7t |
HEN3 Henkel KGaA | 15.9x | 5.6% | €25.6b |
ESSITY B Essity | 27.3x | 20.5% | kr185.6b |
Price-To-Earnings vs Peers: ESSITY B is good value based on its Price-To-Earnings Ratio (27.3x) compared to the peer average (31x).
Price to Earnings Ratio vs Industry
How does ESSITY B's PE Ratio compare vs other companies in the Global Household Products Industry?
Price-To-Earnings vs Industry: ESSITY B is expensive based on its Price-To-Earnings Ratio (27.3x) compared to the European Household Products industry average (16.5x)
Price to Earnings Ratio vs Fair Ratio
What is ESSITY B's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 27.3x |
| Fair PE Ratio | 38.7x |
Price-To-Earnings vs Fair Ratio: ESSITY B is good value based on its Price-To-Earnings Ratio (27.3x) compared to the estimated Fair Price-To-Earnings Ratio (38.7x).
Share Price vs Fair Value
What is the Fair Price of ESSITY B when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: ESSITY B (SEK264.4) is trading below our estimate of fair value (SEK631.98)
Significantly Below Fair Value: ESSITY B is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: ESSITY B is poor value based on its PEG Ratio (1.3x)
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Future Growth
How is Essity forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
Future Growth Score
3/6Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
20.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ESSITY B's forecast earnings growth (20.5% per year) is above the savings rate (0.3%).
Earnings vs Market: ESSITY B's earnings (20.5% per year) are forecast to grow faster than the Swedish market (9.7% per year).
High Growth Earnings: ESSITY B's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ESSITY B's revenue (4.6% per year) is forecast to grow slower than the Swedish market (5.6% per year).
High Growth Revenue: ESSITY B's revenue (4.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ESSITY B's Return on Equity is forecast to be low in 3 years time (17.9%).
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Past Performance
How has Essity performed over the past 5 years?
Past Performance Score
2/6Past Performance Score 2/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
7.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ESSITY B has high quality earnings.
Growing Profit Margin: ESSITY B's current net profit margins (5.3%) are lower than last year (7.9%).
Past Earnings Growth Analysis
Earnings Trend: ESSITY B's earnings have grown by 7.8% per year over the past 5 years.
Accelerating Growth: ESSITY B's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ESSITY B had negative earnings growth (-25.5%) over the past year, making it difficult to compare to the Household Products industry average (-37.5%).
Return on Equity
High ROE: ESSITY B's Return on Equity (11.3%) is considered low.
Discover strong past performing companies
Financial Health
How is Essity's financial position?
Financial Health Score
4/6Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: ESSITY B's short term assets (SEK58.2B) exceed its short term liabilities (SEK52.6B).
Long Term Liabilities: ESSITY B's short term assets (SEK58.2B) do not cover its long term liabilities (SEK62.9B).
Debt to Equity History and Analysis
Debt Level: ESSITY B's net debt to equity ratio (87.7%) is considered high.
Reducing Debt: ESSITY B's debt to equity ratio has reduced from 144% to 95.4% over the past 5 years.
Debt Coverage: ESSITY B's debt is well covered by operating cash flow (23.3%).
Interest Coverage: ESSITY B's interest payments on its debt are well covered by EBIT (16.4x coverage).
Balance Sheet
Discover healthy companies
Dividend
What is Essity current dividend yield, its reliability and sustainability?
Dividend Score
3/6Dividend Score 3/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
2.65%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ESSITY B's dividend (2.65%) is higher than the bottom 25% of dividend payers in the Swedish market (1.6%).
High Dividend: ESSITY B's dividend (2.65%) is low compared to the top 25% of dividend payers in the Swedish market (5.26%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, ESSITY B has been paying a dividend for less than 10 years.
Growing Dividend: ESSITY B's dividend payments have increased, but the company has only paid a dividend for 4 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonable payout ratio (72.4%), ESSITY B's dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonable cash payout ratio (63.1%), ESSITY B's dividend payments are covered by cash flows.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
7.4yrs
Average management tenure
CEO
Magnus Groth (58 yo)
5.42yrs
Tenure
kr32,959,584
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 ($USD3.25M) is about average for companies of similar size in the Swedish market ($USD2.60M).
Compensation vs Earnings: Magnus's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: ESSITY B's management team is seasoned and experienced (7.4 years average tenure).
Board Members
Experienced Board: ESSITY B's board of directors are considered experienced (6.4 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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Essity AB (publ)'s employee growth, exchange listings and data sources
Key Information
- Name: Essity AB (publ)
- Ticker: ESSITY B
- Exchange: OM
- Founded: 1849
- Industry: Household Products
- Sector: Household
- Implied Market Cap: kr185.644b
- Shares outstanding: 702.34m
- Website: https://www.essity.com
Number of Employees
Location
- Essity AB (publ)
- Klarabergsviadukten 63
- PO Box 200
- Stockholm
- Stockholm County
- 101 23
- Sweden
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/06/28 00:00 |
| End of Day Share Price | 2022/06/28 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2021/12/31 |
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.