Essity
Market Cap
kr189.7b
Last Updated
2021/01/15 19:51 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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Good value with adequate 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 is less volatile than 75% of Swedish stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: ESSITY B's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
0.4%
ESSITY B
-3.5%
SE Household Products
-0.4%
SE Market
1 Year Return
-17.5%
ESSITY B
-4.1%
SE Household Products
13.3%
SE Market
Return vs Industry: ESSITY B underperformed the Swedish Household Products industry which returned -3.2% over the past year.
Return vs Market: ESSITY B underperformed the Swedish Market which returned 15.4% over the past year.
Shareholder returns
| ESSITY B | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.4% | -3.5% | -0.4% |
| 30 Day | -1.7% | -2.3% | 4.0% |
| 90 Day | -12.2% | -10.1% | 7.8% |
| 1 Year | -15.6%-17.5% | -1.8%-4.1% | 16.4%13.3% |
| 3 Year | 21.5%13.1% | -4.3%-10.9% | 45.2%27.9% |
| 5 Year | n/a | 11.5%0.08% | 85.8%46.5% |
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
1 week ago | Simply Wall St
Will Weakness in Essity AB (publ)'s (STO:ESSITY B) Stock Prove Temporary Given Strong Fundamentals?3 weeks ago | Simply Wall St
What Type Of Returns Would Essity's(STO:ESSITY B) Shareholders Have Earned If They Purchased Their SharesYear Ago?1 month ago | Simply Wall St
If You Like EPS Growth Then Check Out Essity (STO:ESSITY B) Before It's Too LateValuation
Is Essity undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ESSITY B (SEK265.3) is trading below our estimate of fair value (SEK655.15)
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 good value based on its PE Ratio (18.1x) compared to the XE Household Products industry average (19.3x).
PE vs Market: ESSITY B is good value based on its PE Ratio (18.1x) compared to the Swedish market (23.8x).
Price to Earnings Growth Ratio
PEG Ratio: ESSITY B is poor value based on its PEG Ratio (3.1x)
Price to Book Ratio
PB vs Industry: ESSITY B is overvalued based on its PB Ratio (3.3x) compared to the XE Household Products industry average (2.4x).
Next Steps
Future Growth
How is Essity forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
5.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ESSITY B's forecast earnings growth (5.8% per year) is above the savings rate (0.4%).
Earnings vs Market: ESSITY B's earnings (5.8% per year) are forecast to grow slower than the Swedish market (12% per year).
High Growth Earnings: ESSITY B's earnings are forecast to grow, but not significantly.
Revenue vs Market: ESSITY B's revenue (2.9% per year) is forecast to grow slower than the Swedish market (3.4% per year).
High Growth Revenue: ESSITY B's revenue (2.9% 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 (16.3%).
Next Steps
Past Performance
How has Essity performed over the past 5 years?
17.5%
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 (8.3%) are higher than last year (7.8%).
Past Earnings Growth Analysis
Earnings Trend: ESSITY B's earnings have grown by 17.5% per year over the past 5 years.
Accelerating Growth: ESSITY B's earnings growth over the past year (4.1%) is below its 5-year average (17.5% per year).
Earnings vs Industry: ESSITY B earnings growth over the past year (4.1%) underperformed the Household Products industry 27%.
Return on Equity
High ROE: ESSITY B's Return on Equity (17.8%) 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 (SEK47.6B) exceed its short term liabilities (SEK42.8B).
Long Term Liabilities: ESSITY B's short term assets (SEK47.6B) do not cover its long term liabilities (SEK53.8B).
Debt to Equity History and Analysis
Debt Level: ESSITY B's debt to equity ratio (68.8%) is considered high.
Reducing Debt: ESSITY B's debt to equity ratio has reduced from 76.3% to 68.8% over the past 5 years.
Debt Coverage: ESSITY B's debt is well covered by operating cash flow (40.4%).
Interest Coverage: ESSITY B's interest payments on its debt are well covered by EBIT (16.3x coverage).
Balance Sheet
Next Steps
Dividend
What is Essity current dividend yield, its reliability and sustainability?
2.36%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ESSITY B's dividend (2.36%) is higher than the bottom 25% of dividend payers in the Swedish market (0.93%).
High Dividend: ESSITY B's dividend (2.36%) is low compared to the top 25% of dividend payers in the Swedish market (3.54%).
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 3 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (42.6%), 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 (44.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.0yrs
Average management tenure
CEO
Magnus Groth (57 yo)
4yrs
Tenure
kr33,462,410
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 ($USD4.00M) is above average for companies of similar size in the Swedish market ($USD2.00M).
Compensation vs Earnings: Magnus's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4yrs | kr33.46m | 0.0082% SEK 15.6m | |
| CFO & Executive VP | 4yrs | no data | 0.0032% SEK 6.1m | |
| VP of Investor Relations & Group Function Communications | no data | no data | no data | |
| Senior VP of Group Function Legal Affairs | 9yrs | no data | 0.0044% SEK 8.4m | |
| 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 | 6yrs | no data | no data | |
| President of Professional Hygiene | 9yrs | no data | no data | |
| President of Consumer Goods | 6yrs | no data | 0.0017% SEK 3.2m | |
| President of Latin America | 5yrs | no data | 0.0014% SEK 2.7m | |
| President of Global Manufacturing | no data | no data | 0.0015% SEK 2.9m | |
| President of Health & Medical Solutions | no data | no data | 0.0012% SEK 2.3m |
6.0yrs
Average Tenure
53yo
Average Age
Experienced Management: ESSITY B's management team is seasoned and experienced (6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 4yrs | kr33.46m | 0.0082% SEK 15.6m | |
| Independent Director | 5yrs | kr1.16m | 0.0024% SEK 4.5m | |
| Independent Director | 5yrs | kr770.00k | no data | |
| Independent Director | 4yrs | kr770.00k | no data | |
| Independent Director | 5yrs | kr770.00k | 0.00046% SEK 872.7k | |
| Independent Chairman of the Board | 5yrs | kr2.74m | 0.00071% SEK 1.3m | |
| Independent Non-Executive Director | 5yrs | kr1.15m | no data | |
| Employee Representative Director | 4yrs | no data | 0.000020% SEK 37.9k | |
| Independent Director | 5yrs | kr885.00k | 0.0041% SEK 7.7m | |
| Independent Director | 5yrs | kr770.00k | no data | |
| Employee Representative Director | 4yrs | no data | no data | |
| Employee Representative Director | 1.5yrs | no data | 0.000010% SEK 19.0k |
5.0yrs
Average Tenure
59yo
Average Age
Experienced Board: ESSITY B's board of directors are considered experienced (5 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: kr189.713b
- 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 |
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, inc...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/15 19:51 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/09/30 |
| 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.