Essity AB (ESSITY B) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Essity AB

Clemondo Group AB

Prebona AB

Why is Essity AB ?

Poor long term growth as Operating profit has grown by an annual rate 1.85% of over the last 5 years

With ROE of 15.29%, it has a very expensive valuation with a 2.18 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 -12.68%, its profits have risen by 17.3% ; the PEG ratio of the company is 0.9

Below par performance in long term as well as near term

Along with generating -12.68% returns in the last 1 year, the stock has also underperformed OMX Stockholm 30 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How 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

-12.68%

-0.53

19.60%

OMX Stockholm 30

10.97%

0.59

18.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality 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

Institutional Holding

0.01%

ROCE (avg)

12.85%

ROE (avg)

14.82%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.18

EV to EBIT

11.85

EV to EBITDA

8.37

EV to Capital Employed

1.83

EV to Sales

1.47

PEG Ratio

0.85

Dividend Yield

3.01%

ROCE (Latest)

15.43%

ROE (Latest)

15.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

3What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at SEK 4.94

RAW MATERIAL COST(Y)

Fallen by -6.78% (YoY

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SEK 15,446 MM

DIVIDEND PAYOUT RATIO(Y)

Lowest at 186.54%

Here's what is working for Essity AB

Dividend per share

Highest at SEK 4.94 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (SEK)

Raw Material Cost

Fallen by -6.78% (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

Operating Cash Flow

Lowest at SEK 15,446 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (SEK MM)

Dividend Payout Ratio

Lowest at 186.54%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)