Essity
Market Cap
kr204.0b
Last Updated
2020/03/28 00:21 UTC
Data Sources
Company Financials +
Executive Summary
Essity AB (publ) develops, produces, and sells personal care, consumer tissue, and professional hygiene products and solutions worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Solid track record with mediocre balance sheet.
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 B has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.8%
ESSITY B
1.0%
SE Household Products
4.5%
SE Market
1 Year Return
8.5%
ESSITY B
-9.0%
SE Household Products
-10.2%
SE Market
Return vs Industry: ESSITY B exceeded the Swedish Household Products industry which returned -9% over the past year.
Return vs Market: ESSITY B exceeded the Swedish Market which returned -10.2% over the past year.
Shareholder returns
| ESSITY B | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.8% | 1.0% | 4.5% |
| 30 Day | -2.3% | -7.6% | -23.1% |
| 90 Day | -4.7% | -10.5% | -23.8% |
| 1 Year | 10.9%8.5% | -6.7%-9.0% | -7.4%-10.2% |
| 3 Year | n/a | -23.7%-28.5% | -0.2%-15.4% |
| 5 Year | n/a | -7.5%-16.3% | 8.5%-14.7% |
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
6 days ago | Simply Wall St
Insider Buying: The Essity AB (publ) (STO:ESSITY B) President Just Bought kr1.5m Worth Of Shares1 week ago | Simply Wall St
Is Essity AB (publ)'s (STO:ESSITY B) 16% ROE Better Than Average?2 weeks ago | Simply Wall St
Is Essity AB (publ)'s (STO:ESSITY B) Capital Allocation Ability Worth Your Time?Valuation
Is Essity undervalued compared to its fair value and its price relative to the market?
43.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ESSITY B (SEK290.8) is trading below our estimate of fair value (SEK515.82)
Significantly Below Fair Value: ESSITY B is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ESSITY B is poor value based on its PE Ratio (22.2x) compared to the Household Products industry average (21.3x).
PE vs Market: ESSITY B is poor value based on its PE Ratio (22.2x) compared to the Swedish market (14.1x).
Price to Earnings Growth Ratio
PEG Ratio: ESSITY B is poor value based on its PEG Ratio (2.2x)
Price to Book Ratio
PB vs Industry: ESSITY B is overvalued based on its PB Ratio (3.8x) compared to the XE Household Products industry average (1.7x).
Next Steps
Future Growth
How is Essity forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
10.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ESSITY B's forecast earnings growth (10% per year) is above the savings rate (-0.4%).
Earnings vs Market: ESSITY B's earnings (10% per year) are forecast to grow faster than the Swedish market (7.7% per year).
High Growth Earnings: ESSITY B's earnings are forecast to grow, but not significantly.
Revenue vs Market: ESSITY B's revenue (2.8% per year) is forecast to grow slower than the Swedish market (4.1% per year).
High Growth Revenue: ESSITY B's revenue (2.8% 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%).
Next Steps
Past Performance
How has Essity performed over the past 5 years?
14.7%
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 (7.1%) are higher than last year (6.7%).
Past Earnings Growth Analysis
Earnings Trend: ESSITY B's earnings have grown by 14.7% per year over the past 5 years.
Accelerating Growth: ESSITY B's earnings growth over the past year (16.9%) exceeds its 5-year average (14.7% per year).
Earnings vs Industry: ESSITY B earnings growth over the past year (16.9%) exceeded the Household Products industry 7.7%.
Return on Equity
High ROE: ESSITY B's Return on Equity (16.3%) is considered low.
Next Steps
Financial Health
How is Essity's financial position?
Financial Position Analysis
Short Term Liabilities: ESSITY B's short term assets (SEK42.0B) do not cover its short term liabilities (SEK43.3B).
Long Term Liabilities: ESSITY B's short term assets (SEK42.0B) do not cover its long term liabilities (SEK56.2B).
Debt to Equity History and Analysis
Debt Level: ESSITY B's debt to equity ratio (76.7%) is considered high.
Reducing Debt: ESSITY B's debt to equity ratio has reduced from 90.7% to 76.7% over the past 5 years.
Debt Coverage: ESSITY B's debt is well covered by operating cash flow (40.2%).
Interest Coverage: ESSITY B's interest payments on its debt are well covered by EBIT (11.8x coverage).
Balance Sheet
Inventory Level: ESSITY B has a high level of physical assets or inventory.
Debt Coverage by Assets: ESSITY B's debt is not covered by short term assets (assets are 0.9x debt).
Next Steps
Dividend
What is Essity's current dividend yield, its reliability and sustainability?
2.15%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: ESSITY B's dividend (2.15%) is higher than the bottom 25% of dividend payers in the Swedish market (2.13%).
High Dividend: ESSITY B's dividend (2.15%) is low compared to the top 25% of dividend payers in the Swedish market (6.57%).
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 2 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (47.6%), ESSITY B's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ESSITY B's dividends in 3 years are forecast to be well covered by earnings (44.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.2yrs
Average management tenure
CEO
Magnus Groth (56yo)
3.17s
Tenure
kr33,462,410
Compensation
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 Offi ...
CEO Compensation Analysis
Compensation vs Market: Magnus's total compensation ($USD3.37M) is above average for companies of similar size in the Swedish market ($USD1.79M).
Compensation vs Earnings: Magnus's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3.17yrs | kr33.46m | 0.0077% SEK15.7m | |
| CFO & Executive VP | 3.17yrs | no data | 0.0027% SEK5.5m | |
| VP of Investor Relations & Group Function Communications | no data | no data | no data | |
| Senior VP of Group Function Legal Affairs | 8.17yrs | no data | 0.0038% SEK7.8m | |
| VP of Corporate Communications & Group Function Communications | no data | no data | no data | |
| Manager of Media Relations | no data | no data | no data | |
| Senior Vice President of Group Function Human Resources | 5.17yrs | no data | no data | |
| President of Professional Hygiene | 8.17yrs | no data | 0.0032% SEK6.4m | |
| President of Consumer Goods | 5.17yrs | no data | 0.0014% SEK2.9m | |
| President of Latin America | 4.17yrs | no data | 0.0024% SEK4.8m |
5.2yrs
Average Tenure
56yo
Average Age
Experienced Management: ESSITY B's management team is seasoned and experienced (5.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 3.17yrs | kr33.46m | 0.0077% SEK15.7m | |
| Independent Director | 4.17yrs | kr1.16m | 0.0024% SEK4.9m | |
| Independent Director | 4.17yrs | kr770.00k | no data | |
| Independent Director | 4.17yrs | kr770.00k | 0.00033% SEK673.2k | |
| Independent Chairman of the Board | 4.17yrs | kr2.74m | 0.00043% SEK877.2k | |
| Independent Non-Executive Director | 4.17yrs | kr1.15m | no data | |
| Employee Representative Director | 3.17yrs | no data | 0.000020% SEK40.8k | |
| Independent Director | 4.17yrs | kr885.00k | 0.0031% SEK6.4m | |
| Independent Director | 4.17yrs | kr770.00k | no data | |
| Independent Director | 3.17yrs | kr770.00k | no data |
4.2yrs
Average Tenure
59yo
Average Age
Experienced Board: ESSITY B's board of directors are considered experienced (4.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: ESSITY B 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 company bio, 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
- Market Cap: kr203.998b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ESSITY A | OM (OMX Nordic Exchange Stockholm) | Class A Shares | SE | SEK | Jun 2017 | |
| ESSITY B | OM (OMX Nordic Exchange Stockholm) | Yes | Class B Shares | SE | SEK | Jun 2017 |
| 0RQC | LSE (London Stock Exchange) | Class A Shares | GB | SEK | Jun 2017 | |
| 0RQD | LSE (London Stock Exchange) | Yes | Class B Shares | GB | SEK | Jun 2017 |
| ESSIBS | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Class B Shares | GB | SEK | Jun 2017 |
| ESWB | DB (Deutsche Boerse AG) | Yes | Class B Shares | DE | EUR | Jun 2017 |
| ESW | DB (Deutsche Boerse AG) | Class A Shares | DE | EUR | Jun 2017 | |
| ESSIAS | BATS-CHIXE (BATS 'Chi-X Europe') | Class A Shares | GB | SEK | Jun 2017 | |
| ETTY.F | OTCPK (Pink Sheets LLC) | Yes | Class B Shares | US | USD | Jun 2017 |
| ESSITYB N | BMV (Bolsa Mexicana de Valores) | Yes | Class B Shares | MX | MXN | Jun 2017 |
| ESWA | DB (Deutsche Boerse AG) | SPON ADR EACH REP 1 SHS | DE | EUR | Jun 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 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 comprise medical solutions that include surgical tapes, retention bandages, surgical/post-operation dressings, adhesive bandages/plasters, and advanced wound care products; phlebology products, such as compression stockings, and medical compression garments; lymphology products, such as compression bandages, wraps, garments and pneumatic compression pumps; and fracture management products that include cast tapes, splinting, 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 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/28 00:21 |
| End of Day Share Price | 2020/03/27 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.