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 Jun 26
- INTEREST COVERAGE RATIO(Q) Lowest at 1,210.87
- DEBTORS TURNOVER RATIO(HY) Lowest at 4.73 times
- INTEREST(Q) Highest at SEK 469 MM
3
With ROE of 14.31%, it has a very expensive valuation with a 2.00 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 15.32%, its profits have fallen by -0.7% ; the PEG ratio of the company is 13.9
4
Underperformed the market in the last 1 year
- The stock has generated a return of 15.32% in the last 1 year, much lower than market (OMX Stockholm 30) returns of 27.70%
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
15.32%
0.06
18.77%
OMX Stockholm 30
27.7%
1.79
15.50%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.61%
EBIT Growth (5y)
1.85%
EBIT to Interest (avg)
9.57
Debt to EBITDA (avg)
2.16
Net Debt to Equity (avg)
0.35
Sales to Capital Employed (avg)
1.13
Tax Ratio
26.27%
Dividend Payout Ratio
47.63%
Pledged Shares
0
Institutional Holding
0.01%
ROCE (avg)
12.19%
ROE (avg)
14.82%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
14
Industry P/E
Price to Book Value
2.00
EV to EBIT
11.23
EV to EBITDA
8.10
EV to Capital Employed
1.74
EV to Sales
1.50
PEG Ratio
13.94
Dividend Yield
3.18%
ROCE (Latest)
15.49%
ROE (Latest)
14.31%
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 Trend1What is working for the Company
NET SALES(Q)
Highest at SEK 35,061 MM
-11What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 1,210.87
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.73 times
INTEREST(Q)
Highest at SEK 469 MM
OPERATING PROFIT(Q)
Lowest at SEK 5,679 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 16.2 %
PRE-TAX PROFIT(Q)
Lowest at SEK 3,539 MM
NET PROFIT(Q)
Lowest at SEK 2,681 MM
EPS(Q)
Lowest at SEK 3.94
Here's what is working for Essity AB
Net Sales
Highest at SEK 35,061 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (SEK MM)
Depreciation
Highest at SEK 1,833 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (SEK MM)
Here's what is not working for Essity AB
Interest
At SEK 469 MM has Grown at 1,575%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (SEK MM)
Interest Coverage Ratio
Lowest at 1,210.87
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at SEK 469 MM
in the last five periods and Increased by 1,575% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (SEK MM)
Operating Profit
Lowest at SEK 5,679 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (SEK MM)
Operating Profit Margin
Lowest at 16.2 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at SEK 3,539 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 2,681 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (SEK MM)
EPS
Lowest at SEK 3.94
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (SEK)
Debtors Turnover Ratio
Lowest at 4.73 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
