Essity AB (publ)
Essity AB (publ) Fundamental Analysis
Essity AB (publ) (ETTYF) shows moderate financial fundamentals with a PE ratio of 13.88, profit margin of 9.14%, and ROE of 15.37%. The company generates $145.8B in annual revenue with weak year-over-year growth of -1.09%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ETTYF's fundamental strength across five key dimensions:
Efficiency Score
WeakETTYF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentETTYF trades at attractive valuation levels.
Growth Score
WeakETTYF faces weak or negative growth trends.
Financial Health Score
ExcellentETTYF maintains a strong and stable balance sheet.
Profitability Score
ModerateETTYF maintains healthy but balanced margins.
Key Financial Metrics
Is ETTYF Expensive or Cheap?
P/E Ratio
ETTYF trades at 13.88 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ETTYF's PEG of 0.47 indicates potential undervaluation.
Price to Book
The market values Essity AB (publ) at 2.05 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.07 times EBITDA. This is generally considered low.
How Well Does ETTYF Make Money?
Net Profit Margin
For every $100 in sales, Essity AB (publ) keeps $9.14 as profit after all expenses.
Operating Margin
Core operations generate 13.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.37 in profit for every $100 of shareholder equity.
ROA
Essity AB (publ) generates $7.56 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Essity AB (publ) produces operating cash flow of $16.26B, showing steady but balanced cash generation.
Free Cash Flow
Essity AB (publ) produces free cash flow of $8.79B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $12.19 in free cash annually.
FCF Yield
ETTYF converts 4.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.47
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.05
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.34
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.43
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.33
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How ETTYF Stacks Against Its Sector Peers
| Metric | ETTYF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.88 | 22.56 | Better (Cheaper) |
| ROE | 15.37% | 1288.00% | Weak |
| Net Margin | 9.14% | -5952.00% (disorted) | Weak |
| Debt/Equity | 0.43 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 1.33 | 2.41 | Neutral |
| ROA | 7.56% | -197304.00% (disorted) | Weak |
ETTYF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Essity AB (publ)'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
13.18%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
127.32%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
-12.92%
Industry Style: Defensive, Dividend, Low Volatility
Declining