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ESSI

Essity OM:ESSITY B Stock Report

Last Price

kr264.40

Market Cap

kr185.6b

7D

4.3%

1Y

-6.0%

Updated

28 Jun, 2022

Data

Company Financials +
ESSITY B fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance2/6
Financial Health4/6
Dividends3/6

ESSITY B Stock Overview

Essity AB (publ) develops, produces, and sells hygiene and health products and services worldwide.

Essity Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Essity
Historical stock prices
Current Share Pricekr264.40
52 Week Highkr310.00
52 Week Lowkr211.90
Beta0.24
1 Month Change4.14%
3 Month Change18.51%
1 Year Change-5.97%
3 Year Change-9.70%
5 Year Change13.23%
Change since IPO6.40%

Recent News & Updates

Jun 05
Returns On Capital Signal Tricky Times Ahead For Essity (STO:ESSITY B)

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...

Apr 20
Does Essity (STO:ESSITY B) Have A Healthy Balance Sheet?

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 BSE Household ProductsSE Market
7D4.3%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

Is ESSITY B's price volatile compared to industry and market?
ESSITY B volatility
ESSITY B Average Weekly Movement5.0%
Household Products Industry Average Movement7.2%
Market Average Movement7.4%
10% most volatile stocks in SE Market12.1%
10% least volatile stocks in SE Market4.7%

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

FoundedEmployeesCEOWebsite
184946,000Magnus Grothhttps://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

How do Essity's earnings and revenue compare to its market cap?
ESSITY B fundamental statistics
Market Capkr185.64b
Earnings (TTM)kr6.79b
Revenue (TTM)kr128.64b

27.3x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ESSITY B income statement (TTM)
Revenuekr128.64b
Cost of Revenuekr93.57b
Gross Profitkr35.07b
Other Expenseskr28.28b
Earningskr6.79b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 21, 2022

Earnings per share (EPS)9.67
Gross Margin27.26%
Net Profit Margin5.28%
Debt/Equity Ratio95.4%

How did ESSITY B perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

72%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is ESSITY B undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation 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.

ESSITY B key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2x
Enterprise Value/EBITDA13.8x
PEG Ratio1.3x

Price to Earnings Ratio vs Peers

How does ESSITY B's PE Ratio compare to its peers?

ESSITY B PE Ratio vs Peers
The above table shows the PE ratio for ESSITY B vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average31x
CLX Clorox
36.8x17.2%US$17.0b
8113 Unicharm
39.4x7.9%JP¥2.7t
UNVR Unilever Indonesia
31.7x5.0%Rp192.7t
HEN3 Henkel KGaA
15.9x5.6%€25.6b
ESSITY B Essity
27.3x20.5%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.

ESSITY B PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.3x
Fair PE Ratio38.7x

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

3/6

Future 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%).


Discover growth companies

Past Performance

How has Essity performed over the past 5 years?

Past Performance Score

2/6

Past 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

4/6

Financial 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


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Dividend

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

Dividend Score

3/6

Dividend 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/28 00:00
End of Day Share Price2022/06/28 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.