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Essity Aktiebolag (OM:ESSITY B)

SE0009922164

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Essity Aktiebolag stock research in summary

essity.com

ANALYSIS: With an Obermatt Combined Rank of 19 (worse than 81% compared with investment alternatives), Essity Aktiebolag (Household Products, Sweden) shares have lower financial characteristics compared with similar stocks. Shares of Essity Aktiebolag are a good value (attractively priced) with a consolidated Value Rank of 56 (better than 56% of alternatives) but show below-average growth (Growth Rank of 27), and are riskily financed (Safety Rank of 29), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 19, is a sell recommendation based on Essity Aktiebolag's financial characteristics. As the company Essity Aktiebolag's key financial metrics exhibit good value (Obermatt Value Rank of 56) but low growth (Obermatt Growth Rank of 27) and risky financing practices (Obermatt Safety Rank of 29), it may be a risky investment, because debt in times of crises can make things worse. The good value, better than 56% of comparable companies, may indicate the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	n/a
Growth Rank	n/a
Safety Rank	n/a
Combined Rank	n/a

Country	Sweden
Industry	Household Products
Index	Human Rights, OMX 30
Size class	XX-Large

This stock has achievements: Top 10 Stock.

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Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Essity Aktiebolag

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	60	63	63	n/a
GROWTH
GROWTH	11	37	71	n/a
SAFETY
SAFETY	16	25	12	n/a
SENTIMENT
SENTIMENT	n/a	24	42	^new
360° VIEW
360° VIEW	n/a	25	45	^new

Most recent update of the stock research: . Financial reporting date used for calculating ranks: . Stock research history is based on the Obermatt Method. The higher the rank, the better Essity Aktiebolag is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	60	63	63	n/a
GROWTH
GROWTH	11	37	71	n/a
SAFETY
SAFETY	16	25	12	n/a
COMBINED
COMBINED	13	32	44	n/a

Last update of combined financial performance: . Stock analysis on combined financial performance: The higher the rank of Essity Aktiebolag the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 56 (better than 56% compared with alternatives), Essity Aktiebolag shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Essity Aktiebolag. Price-to-Sales (P/S) is 66, which means that the stock price compared with what market professionals expect for future sales is lower than for 66% of comparable companies, indicating a good value concerning Essity Aktiebolag's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 67% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 58 (dividends are expected to be higher than 58% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 62% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Essity Aktiebolag to 38. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 56, is a buy recommendation based on Essity Aktiebolag's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner in assets than its competitors. For instance, the company could be leasing its production facilities or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the three good value ranks for Sales, Profits, and Dividends are reliable indicators for the stock price value. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	65	67	70	n/a
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	55	64	70	n/a
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	31	46	37	n/a
DIVIDEND YIELD
DIVIDEND YIELD	71	55	75	n/a
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	60	63	63	n/a

Last update of Value Rank: . Stock analysis on value ratios: The higher the rank, the lower the value ratio of Essity Aktiebolag; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 27 (better than 27% compared with alternatives), Essity Aktiebolag shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four metrics below average for Essity Aktiebolag. While Profit Growth has a good rank of 81, as professionals currently expect the company to grow its profits more than 81% of its competitors, all other growth indicators are below market averages. Sales Growth has a rank of 10, which means that currently professionals expect the company to grow less than 90% of its competitors, while Capital Growth has a rank of 31 and Stock Returns have been below market median, with a rank of 35 (65% of alternative investments were better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 27, is a hold recommendation for growth and momentum investors. While revenue growth and capital growth are good growth momentum indicators, profit is less reliable, because profits may increase due to cost-cutting measures which typically indicate negative growth momentum. "You can save a dollar only once" is the saying about such situations. Growth Investors should look at company priorities closely if they are interested in growth, because the increase in profits is not usually an indicator of growth, and stock prices have been below market, too. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	5	66	18	n/a
PROFIT GROWTH
PROFIT GROWTH	n/a	12	82	n/a
CAPITAL GROWTH
CAPITAL GROWTH	n/a	70	85	n/a
STOCK RETURNS
STOCK RETURNS	41	45	39	n/a
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	11	37	71	n/a

Last update of Growth Rank: . Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Essity Aktiebolag.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 29 (better than 29% compared with alternatives), the company Essity Aktiebolag has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Essity Aktiebolag is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Essity Aktiebolag. Liquidity is at 62, meaning the company generates more profit to service its debt than 62% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 27, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 73% of its competitors. Leverage is also high at a rank of 22, which means that the company has an above-average debt-to-equity ratio. It has more debt than 78% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 29 (worse than 71% compared with alternatives), Essity Aktiebolag has a financing structure that is riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	22	25	18	n/a
REFINANCING
REFINANCING	39	22	23	n/a
LIQUIDITY
LIQUIDITY	37	65	44	n/a
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	16	25	12	n/a

Last update of Safety Rank: . Stock analysis on safety metrics: The higher the rank, the lower the leverage of Essity Aktiebolag and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	23	44	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	55	31	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	47	65	^new
MARKET PULSE
MARKET PULSE	n/a	34	39	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	24	42	^new

Last update of Sentiment Rank: . Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Essity Aktiebolag.
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