# Essity (ESSITY-B.ST)

Canonical: https://gigainvestors.com/s/ESSITY-B.ST

Analysis as of: 2026-10-16T07:34:50.759Z. Financial observations: FY2014–FY2025.

Listing currency: SEK. Reporting currency: SEK.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: SEK 275.80 per share; close as of 2026-10-15.

Estimated value: low SEK 152.97 per share, central SEK 173.23 per share, high SEK 200.20 per share. Buy at or below the central value SEK 173.23 per share. Valuation as of 2026-10-16T07:34:50.759Z; scenarios are not confidence intervals.

Expected annual return: 7.3% at the stated quote. About 7.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; SE 10-year bond 3.1% + 4 points).

## Checklist

### understandable: pass

- 4 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.20×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.09×

- FY2017: 0.11×

- FY2018: 0.09×

- FY2019: 0.11×

- FY2020: 0.14×

- FY2021: 0.11×

- FY2022: 0.06×

- FY2023: 0.12×

- FY2024: 0.13×

- FY2025: 0.13×

### moat: pass

- ROIC, median of available years: 15.6%

- ROIC, second-lowest year: 13.0%

- Typical minus recent gross margin: -3.1 pp

- Typical gross margin (annual median): 29.3%

- Recent gross margin (lower of latest and 3-year median): 32.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 5.3%

- ROIC including acquisitions, ten-year median: 8.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 13.0%

- FY2017: 16.2%

- FY2018: 15.0%

- FY2019: 16.7%

- FY2020: 19.9%

- FY2021: 13.7%

- FY2022: 8.0%

- FY2023: 15.1%

- FY2024: 18.0%

- FY2025: 17.9%

### economics: pass

- Owner earnings / net income, 5-yr: 0.95×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: SEK 54B

- Net income, five-year total: SEK 57B

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.4 pp

- Working capital / revenue, change between three-year averages: 1.2 pp

- Working capital / revenue, final three-year average: 18.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.90×

- FY2022: 0.86×

- FY2023: 1.03×

- FY2024: 0.96×

- FY2025: 0.94×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 15.0% vs 17.9%

- Per-share earnings: 8.73 to 18.51 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.3%

- Ordinary dilution, 5-year annual growth: -0.5%

- Market cap gain: SEK 18B

- Cumulative retained earnings: SEK 42B

- Diluted shares, 10-year annual growth: -0.3%

- Diluted shares, 5-year annual growth: -0.5%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 9.9%

- Per-share value change: SEK 9.78

- Per-share value, starting three-year median: SEK 8.73

- Per-share value, ending three-year median: SEK 18.51

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 1.4%

- Buyback history: 2 years

- Debt-funded buybacks: No

- Acquisition spending: SEK 53B

- Cumulative net income, 10 years: SEK 97B

- ROIC, first three-year median: 15.0%

- ROIC, last three-year median: 17.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: SEK 5.41

- FY2017: SEK 11.56

- FY2018: SEK 11.23

- FY2019: SEK 13.12

- FY2020: SEK 14.56

- FY2021: SEK 12.27

- FY2022: SEK 7.93

- FY2023: SEK 13.60

- FY2024: SEK 29.99

- FY2025: SEK 18.51

### accounting: pass

- Sloan accruals: -1.7%

- Receivables to sales index (DSRI): 1.10×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.22×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.64×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -7.9%

- FY2017: -3.1%

- FY2018: -3.4%

- FY2019: -6.2%

- FY2020: -4.9%

- FY2021: -3.5%

- FY2022: -3.5%

- FY2023: -5.9%

- FY2024: 2.2%

- FY2025: -1.7%

## Holders

## Price story

Price needs cash profits to grow 6.9% a year for ten years · sales -4.8%

Story as of 2026-10-16T10:00:02.759Z; price observation 2026-10-15.

Price needs cash profits to grow 6.9% a year for ten years

### Sales · FY2024–2025

sales -4.8%; source https://filings.xbrl.org/549300G8E6YUVJ1DA153/2024-12-31/ESEF/SE/0/essi-2024-12-31-0-sv/reports/essi-2024-12-31-0-sv.xhtml; observed 2025-05-08.

- FY2016: SEK 101B 

- FY2017: SEK 109B 

- FY2018: SEK 119B 

- FY2019: SEK 129B 

- FY2020: SEK 122B 

- FY2021: SEK 122B 

- FY2022: SEK 156B 

- FY2023: SEK 147B 

- FY2024: SEK 146B 

- FY2025: SEK 138B 

### Gross margin · FY2025

gross margin 33.3%; source https://filings.xbrl.org/549300G8E6YUVJ1DA153/2024-12-31/ESEF/SE/0/essi-2024-12-31-0-sv/reports/essi-2024-12-31-0-sv.xhtml; observed 2025-05-08.

- FY2016: 27.9% 

- FY2017: 29.2% 

- FY2018: 27.0% 

- FY2019: 29.4% 

- FY2020: 32.4% 

- FY2021: 28.8% 

- FY2022: 23.8% 

- FY2023: 30.7% 

- FY2024: 32.4% 

- FY2025: 33.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in household & personal products; annual sales are SEK 138.5 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2025: revenue 138494000000; grossProfit 46122000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ESSITY-B.ST: Essity AB (publ) develops, produces, and sells hygiene and health products and services in Europe, North and Latin America, Asia, and internationally. The company operates through three segments: Health & Medical, Consumer Goods, and Professional Hygiene. The Health & Medical segment offers incontinence products, wound care, compression therapy, orthopedics, skincare products, and digital solutions with sensor technology under the TENA, Leukoplast, JOBST, Actimove, Cutimed, Delta-Cast, AquaCast Liner, and Hydrofera brands to family carers, professional caregivers, and patients and consumers through pharmacies, medical device stores, hospitals, distributors, care institutions, and e-commerce. The Consumer Goods segment provides pads, panty liners, tampons, diapers, wet wipes, shampoos, lotions, baby oil, skin creams, intimate soaps, intimate wipes, leakproof apparel, menstrual cups, toilet papers, household towels, handkerchiefs, facial tissues, and napkins under the TENA, Knix, Modibodi, Libero, Lotus, Libresse, Bodyform, Nana, Saba, Nosotras, TOM Organic, Tempo, Zewa, Cushelle, Plenty, Regio, and Familia brands through retail trade and e-commerce. The Professional Hygiene segment offers toilet papers, paper hand towels, napkins, hand soaps, hand lotions, hand sanitizers, dispensers, and cleaning and wiping products, as well as vision cleaning and data-driven cleaning solutions under the Tork brand to companies and office buildings, universities, healthcare facilities, airports, industries, restaurants, hotels, stadiums, and other public venues through direct to the end-customer, e-commerce, or distributors. Essity AB (publ) was founded in 1849 and is headquartered in Stockholm, Sweden.

### Why customers stay

Margins ranged from 30.7% to 33.3% during 2023–25; it earns 15.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2023: grossProfit / revenue = 30.7%.

- Source: https://filings.xbrl.org/549300G8E6YUVJ1DA153/2024-12-31/ESEF/SE/0/essi-2024-12-31-0-sv/reports/essi-2024-12-31-0-sv.xhtml (filed 2025-05-08); FY2024: grossProfit / revenue = 32.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2025: grossProfit / revenue = 33.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); 10-year return on capital observations [[2016,0.12983856661344687],[2017,0.16169117868537586],[2018,0.14983627794538099],[2019,0.16664119413598355],[2020,0.19852855110307185],[2021,0.1373368302339105],[2022,0.07982995857354354],[2023,0.15125540768408227],[2024,0.1802133864168204],[2025,0.1785238685360116]]; median 0.15647329318472908. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back SEK 3.2 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2016: growth capex 1036000000; upkeep 5303000000; owner earnings 3800000000. Growth capex / owner earnings = 0.27263157894736845.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2017: growth capex 0; upkeep 6160000000; owner earnings 8240000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2018: growth capex 41000000; upkeep 6865000000; owner earnings 7886000000. Growth capex / owner earnings = 0.005199086989601826.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2019: growth capex 0; upkeep 5947000000; owner earnings 10705600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2020: growth capex 0; upkeep 6607000000; owner earnings 11015800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2021: growth capex 51632593.19134045; upkeep 7306367406.80866; owner earnings 7738432593.19134. Growth capex / owner earnings = 0.006672228848613269.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2022: growth capex 111000000; upkeep 6838000000; owner earnings 4780973383.905013. Growth capex / owner earnings = 0.02321702948058188.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2023: growth capex 0; upkeep 6890000000; owner earnings 9834400000. Growth capex / owner earnings = 0.

- Source: https://filings.xbrl.org/549300G8E6YUVJ1DA153/2024-12-31/ESEF/SE/0/essi-2024-12-31-0-sv/reports/essi-2024-12-31-0-sv.xhtml (filed 2025-05-08); FY2024: growth capex 0; upkeep 7396000000; owner earnings 20131600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2025: growth capex 0; upkeep 7090000000; owner earnings 11931400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); Dividend observations: [[2016,4038000000],[2017,4038000000],[2018,4038000000],[2019,4038000000],[2020,4390000000],[2021,4741000000],[2022,4916000000],[2023,5092000000],[2024,5443000000],[2025,5711000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); FY2025: cash repurchases 3160000000 SEK.

### Are managers owners

Insiders own 8.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); ESSITY-B.ST SharesStats.PercentInsiders = 8.905000000000001 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 6.9% yearly over ten years; actual growth was 7.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2025-05-08); Ten-year compound average after fade. Initial solved rate 0.0859409110858177. Price 275.8; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 8.727039726612558 → FY2025 17.445862759719848. Closing-price date 2026-10-15.

## Monthly share-price history (SEK per share)

- 2017-06: SEK 230.50 per share

- 2017-07: SEK 234.10 per share

- 2017-08: SEK 220.60 per share

- 2017-09: SEK 221.60 per share

- 2017-10: SEK 250.30 per share

- 2017-11: SEK 243.10 per share

- 2017-12: SEK 233.00 per share

- 2018-01: SEK 236.00 per share

- 2018-02: SEK 228.00 per share

- 2018-03: SEK 230.60 per share

- 2018-04: SEK 223.00 per share

- 2018-05: SEK 224.00 per share

- 2018-06: SEK 221.20 per share

- 2018-07: SEK 219.90 per share

- 2018-08: SEK 237.00 per share

- 2018-09: SEK 223.40 per share

- 2018-10: SEK 208.90 per share

- 2018-11: SEK 233.20 per share

- 2018-12: SEK 217.60 per share

- 2019-01: SEK 250.20 per share

- 2019-02: SEK 257.70 per share

- 2019-03: SEK 268.10 per share

- 2019-04: SEK 281.80 per share

- 2019-05: SEK 278.50 per share

- 2019-06: SEK 285.40 per share

- 2019-07: SEK 288.00 per share

- 2019-08: SEK 306.10 per share

- 2019-09: SEK 287.30 per share

- 2019-10: SEK 301.30 per share

- 2019-11: SEK 301.00 per share

- 2019-12: SEK 301.80 per share

- 2020-01: SEK 306.00 per share

- 2020-02: SEK 287.60 per share

- 2020-03: SEK 306.00 per share

- 2020-04: SEK 317.50 per share

- 2020-05: SEK 310.80 per share

- 2020-06: SEK 301.10 per share

- 2020-07: SEK 288.50 per share

- 2020-08: SEK 297.60 per share

- 2020-09: SEK 302.80 per share

- 2020-10: SEK 257.90 per share

- 2020-11: SEK 271.90 per share

- 2020-12: SEK 264.50 per share

- 2021-01: SEK 267.30 per share

- 2021-02: SEK 253.80 per share

- 2021-03: SEK 275.90 per share

- 2021-04: SEK 276.30 per share

- 2021-05: SEK 286.40 per share

- 2021-06: SEK 283.80 per share

- 2021-07: SEK 281.50 per share

- 2021-08: SEK 276.80 per share

- 2021-09: SEK 272.00 per share

- 2021-10: SEK 277.80 per share

- 2021-11: SEK 288.40 per share

- 2021-12: SEK 295.40 per share

- 2022-01: SEK 261.90 per share

- 2022-02: SEK 244.70 per share

- 2022-03: SEK 222.20 per share

- 2022-04: SEK 261.00 per share

- 2022-05: SEK 256.20 per share

- 2022-06: SEK 267.10 per share

- 2022-07: SEK 258.00 per share

- 2022-08: SEK 237.10 per share

- 2022-09: SEK 220.80 per share

- 2022-10: SEK 233.40 per share

- 2022-11: SEK 255.60 per share

- 2022-12: SEK 273.30 per share

- 2023-01: SEK 272.70 per share

- 2023-02: SEK 283.00 per share

- 2023-03: SEK 296.40 per share

- 2023-04: SEK 310.70 per share

- 2023-05: SEK 288.40 per share

- 2023-06: SEK 287.10 per share

- 2023-07: SEK 260.90 per share

- 2023-08: SEK 255.70 per share

- 2023-09: SEK 235.90 per share

- 2023-10: SEK 254.30 per share

- 2023-11: SEK 262.50 per share

- 2023-12: SEK 250.00 per share

- 2024-01: SEK 244.70 per share

- 2024-02: SEK 241.70 per share

- 2024-03: SEK 254.20 per share

- 2024-04: SEK 274.60 per share

- 2024-05: SEK 269.50 per share

- 2024-06: SEK 271.40 per share

- 2024-07: SEK 301.30 per share

- 2024-08: SEK 311.60 per share

- 2024-09: SEK 316.90 per share

- 2024-10: SEK 300.80 per share

- 2024-11: SEK 300.20 per share

- 2024-12: SEK 295.70 per share

- 2025-01: SEK 280.90 per share

- 2025-02: SEK 296.50 per share

- 2025-03: SEK 285.40 per share

- 2025-04: SEK 278.40 per share

- 2025-05: SEK 280.30 per share

- 2025-06: SEK 262.00 per share

- 2025-07: SEK 241.50 per share

- 2025-08: SEK 255.60 per share

- 2025-09: SEK 245.80 per share

- 2025-10: SEK 260.90 per share

- 2025-11: SEK 261.20 per share

- 2025-12: SEK 265.20 per share

- 2026-01: SEK 263.20 per share

- 2026-02: SEK 287.30 per share

- 2026-03: SEK 242.90 per share

- 2026-04: SEK 244.50 per share

- 2026-05: SEK 259.60 per share

- 2026-06: SEK 274.30 per share

- 2026-07: SEK 277.20 per share

- 2026-08: SEK 280.70 per share

- 2026-09: SEK 259.10 per share

- 2026-10: SEK 275.80 per share

## Annual estimated value (SEK per share)

- FY2018: low SEK 115.67 per share, central SEK 131.49 per share, high SEK 152.55 per share

- FY2019: low SEK 134.30 per share, central SEK 152.72 per share, high SEK 177.24 per share

- FY2020: low SEK 146.76 per share, central SEK 166.46 per share, high SEK 192.69 per share

- FY2021: low SEK 145.38 per share, central SEK 165.10 per share, high SEK 191.36 per share

- FY2022: low SEK 163.54 per share, central SEK 185.84 per share, high SEK 215.52 per share

- FY2023: low SEK 155.90 per share, central SEK 177.00 per share, high SEK 205.09 per share

- FY2024: low SEK 171.88 per share, central SEK 192.93 per share, high SEK 220.95 per share

- FY2025: low SEK 158.14 per share, central SEK 178.54 per share, high SEK 205.69 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original ESEF filing](https://filings.xbrl.org/549300G8E6YUVJ1DA153/2024-12-31/ESEF/SE/0/essi-2024-12-31-0-sv/reports/essi-2024-12-31-0-sv.xhtml); period 2024-12-31, filed 2025-05-08.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.