Essity AB (publ) (ESSITY-B.ST) stock analysis

In our weekly check, Essity AB (publ) is graded A (A to F). Of 24 checks on debt, profit, cash flow and trend: 20 pass, warnings: 3, red flags: 1.

About Essity AB (publ)

Essity AB (publ) is a Consumer Defensive company (Household & Personal Products) based in Sweden, listed on STO as ESSITY-B.ST.

What our checks show for ESSITY-B.ST

Red flags

• Revenue fell 3.8% a year over the last 3 years.

Warning signs

• Analysts expect only about 4% a year of growth in revenue.
• The net margin is only 8%: little room if costs rise.
• Recovering from its deepest fall took about 2.4 years.

Strengths

• Net debt is only 1.4x a year of EBITDA: the balance sheet has room.
• Operating profit covers interest 14 times over.
• The net margin rose by 0.9 points over 5 years, to 8%.
• The gross margin is 32.4% and has risen by 3.6 points: pricing power is holding.
• Operating cash flow is 1.68x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 13.6% a year over the next years.

Next earnings report: 2027-01-21

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Questions

What grade does Essity AB (publ) (ESSITY-B.ST) have?

In our weekly check, Essity AB (publ) is graded A (A to F). Of 24 checks on debt, profit, cash flow and trend: 20 pass, warnings: 3, red flags: 1. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of ESSITY-B.ST stock?

This week's biggest flags for Essity AB (publ): Weak revenue growth, Weak revenue forecast, Thin margins. In total 4 of 24 checks show a warning or a red flag.

What does Essity AB (publ) do?

Essity AB (publ) is a Consumer Defensive company (Household & Personal Products) based in Sweden, listed on STO as ESSITY-B.ST.

When does Essity AB (publ) report earnings next?

The next earnings report is expected on 2027-01-21. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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