Rankings Food, drinks & restaurants Essity
Essity
64
15070100
A view of the same findings, not a new score. How it works
A good business with a real question mark: the price, a crack, or both.
Biggest deductions
- Quality of growth−5
- Commodities and energy−4
- Margin−3
Strengths
- Strong brands and volume+3
- Solid balance sheet+1
- Buybacks+1
How the score is built
From 100 to 64, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 3 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 280.20 SEK
- Median analyst target
- 270.00 SEK
- Upside to median
- −3.6%
- Analysts
- 15
- Target range
- 215.00 – 320.00 SEK
- 52-week change
- +7%
- P/E (trailing)
- 17.1
- Forward P/E
- 14.2
- PEG
- 2.67
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 3 findings−10 of −30
- −5Quality of growthOrganic growth only 0.3% in Q2 2026 (volume +1.4%, price/mix −1.1%) vs its own target of over 3%; revenue has fallen from SEK 147.1bn in 2023 to 137.6bn TTM (partly because of the Vinda sale), and reported growth in Q2 came mostly from the acquisition of Edgewell's feminine care business.
- −3MarginEBITA margin excl. one-offs 13.4% in Q2 (13.7% a year earlier) vs a target of over 15%; the gross margin fell 0.7 pp. The group gross margin is only about 33%.
- −2Future segmentConsumer Tissue is the largest business area (SEK 43.5bn, 31% of sales in 2025) with falling volume (−2.7%) and prices; it is now to be sold or listed at an expected value of only EUR 2.5–3bn, i.e. about 0.7 times revenue.
Price
Today's multiples against the company's own history and its peers. · 2 findings−4 of −35
- −2Multiples vs own historyForward P/E 13.8 vs 13.2–18.9 in 2021–2025 and EV/EBITDA 8.3 vs 8.7–17.3 – at the bottom of its own history, but for a company with almost zero growth and a falling margin it is not a clear discount.
- −2FCF yieldFCF after leases of SEK 9.8bn TTM gives 5.6% of the SEK 176bn market value, but only 4.1% on 2025 figures (7.3bn); net debt SEK 35.7bn, P/FCF 16.2.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 3 findings−9 of −35
- −4Commodities and energyPulp costs rose markedly in Q2 and are expected to rise further in Q3; oil-based materials (superabsorbents, nonwovens) squeeze the incontinence, baby and feminine care products, and energy is only about 65% price-hedged for Q3.
- −3Competition and price pressureConsumer Tissue had both lower volumes and lower prices as a hangover from 2025, and management calls demand and competition challenging; price increases in healthcare contracts come through slowly.
- −2Execution: tissue exit and EdgewellIntegrating the Edgewell acquisition cost more than expected and squeezed the Personal Care margin, while the divestment of Consumer Tissue (completed in H1 2027 at the earliest) could yield a low price and stranded costs.
Plus
Only documented strengths. · 3 findings+5 of +15
- +3Strong brands and volumeA global leader in incontinence (TENA) and professional hygiene (Tork); Personal Care grew 4.3% in volume (feminine care and incontinence 6–7%), Professional Hygiene 3% and Health & Medical about 2.5%, all with rising margins except Personal Care.
- +1Solid balance sheetNet debt/EBITDA 1.1 times on its own measure despite the Edgewell acquisition; stockanalysis shows 1.5 vs 3.8 in 2022.
- +1BuybacksA third buyback programme started on 12 May 2026; the share count has fallen 1.7% in a year. Dividends (6.0bn) and buybacks (2.9bn) TTM are below FCF of SEK 10.9bn, but were above FCF after leases in 2025.
Caveats
What the score does not capture, or where the data is weak.
The B share (ESSITY.B). Hygiene and health products do not fit the industry list: placed under 'Food, drinks & restaurants' as the closest consumer goods category (alternatively Pharma & medtech for Health & Medical, but that is only about 20% of sales). Reported revenue is depressed by the sale of Vinda (2024), and 2024 net income was lifted by the gain on the sale, so EPS history is distorted. The sale or IPO of Consumer Tissue (31% of sales) may change the profile markedly in H1 2027. Q3 report 22 Oct. 2026. Peers (Kimberly-Clark, P&G) have not been compared.
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