ScoreWhy is Essity AB ?
1
Poor long term growth as Operating profit has grown by an annual rate 1.85% of over the last 5 years
2
Flat results in Mar 26
- NET SALES(Q) Lowest at SEK 33,177 MM
- OPERATING PROFIT(Q) Lowest at SEK 5,938 MM
- PRE-TAX PROFIT(Q) Lowest at SEK 3,946 MM
3
With ROE of 14.87%, it has a very expensive valuation with a 2.13 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 7.44%, its profits have risen by 5.8% ; the PEG ratio of the company is 2
4
Underperformed the market in the last 1 year
- The stock has generated a return of 7.44% in the last 1 year, much lower than market (OMX Stockholm 30) returns of 30.13%
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Essity AB for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Essity AB
7.44%
-0.03
18.50%
OMX Stockholm 30
30.13%
1.89
15.95%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.61%
EBIT Growth (5y)
1.85%
EBIT to Interest (avg)
10.11
Debt to EBITDA (avg)
2.19
Net Debt to Equity (avg)
0.35
Sales to Capital Employed (avg)
1.16
Tax Ratio
25.52%
Dividend Payout Ratio
47.63%
Pledged Shares
0
Institutional Holding
0.01%
ROCE (avg)
12.85%
ROE (avg)
14.82%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
14
Industry P/E
Price to Book Value
2.13
EV to EBIT
11.21
EV to EBITDA
8.12
EV to Capital Employed
1.86
EV to Sales
1.50
PEG Ratio
2.03
Dividend Yield
2.92%
ROCE (Latest)
16.63%
ROE (Latest)
14.87%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
RAW MATERIAL COST(Y)
Fallen by -1.99% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 34.42 %
-5What is not working for the Company
NET SALES(Q)
Lowest at SEK 33,177 MM
OPERATING PROFIT(Q)
Lowest at SEK 5,938 MM
PRE-TAX PROFIT(Q)
Lowest at SEK 3,946 MM
NET PROFIT(Q)
Lowest at SEK 2,887 MM
EPS(Q)
Lowest at SEK 4.23
Here's what is working for Essity AB
Debt-Equity Ratio
Lowest at 34.42 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -1.99% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Essity AB
Net Sales
Lowest at SEK 33,177 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (SEK MM)
Operating Profit
Lowest at SEK 5,938 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (SEK MM)
Pre-Tax Profit
Lowest at SEK 3,946 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (SEK MM)
Net Profit
Lowest at SEK 2,887 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (SEK MM)
EPS
Lowest at SEK 4.23
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (SEK)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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