Financials Essity LIQUIDNET SYSTEMS

Equities

SE0009922164

Personal Products

Real-time Estimate Cboe Europe Other stock markets 08:55:00 06/05/2024 pm IST			5-day change	1st Jan Change
277 ^SEK	0.00%		0.00%	0.00%

03/05	ESSITY : Q1 24: Strong margin delivery despite soft volumes
25/04	Transcript : Essity AB, Q1 2024 Earnings Call, Apr 25, 2024

Valuation

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Capitalization ¹	2,11,948	1,86,140	2,07,509	1,91,871	1,75,494	1,92,891	-	-
Enterprise Value (EV) ¹	2,62,888	2,28,828	2,62,942	2,54,740	2,29,197	2,23,627	2,17,379	2,10,718
P/E ratio	23 x	18.2 x	24.1 x	34.5 x	18.4 x	13.2 x	13.9 x	12.9 x
Yield	2.07%	2.55%	2.37%	2.65%	3.1%	2.98%	3.26%	3.53%
Capitalization / Revenue	1.64 x	1.53 x	1.7 x	1.23 x	1.19 x	1.3 x	1.26 x	1.22 x
EV / Revenue	2.04 x	1.88 x	2.16 x	1.63 x	1.56 x	1.51 x	1.42 x	1.33 x
EV / EBITDA	11.7 x	9.42 x	13.1 x	12.5 x	9.16 x	8.5 x	7.95 x	7.32 x
EV / FCF	19.6 x	20.4 x	36 x	43 x	18.7 x	20.9 x	16.2 x	15 x
FCF Yield	5.1%	4.9%	2.78%	2.33%	5.33%	4.77%	6.17%	6.69%
Price to Book	3.92 x	3.42 x	3.46 x	2.85 x	2.48 x	2.29 x	2.15 x	2.04 x
Nbr of stocks (in thousands)	7,02,342	7,02,342	7,02,342	7,02,342	7,02,342	7,02,342	-	-
Reference price ²	301.8	264.5	295.4	273.3	250.0	274.7	274.7	274.7
Announcement Date	22/01/20	27/01/21	26/01/22	26/01/23	25/01/24	-	-	-

¹SEK in Million²SEK

Estimates

Income Statement Evolution (Annual data)

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net sales ¹	1,28,975	1,21,752	1,21,867	1,56,173	1,47,147	1,48,209	1,52,891	1,58,740
EBITDA ¹	22,539	24,291	20,040	20,390	25,024	26,297	27,347	28,773
EBIT ¹	15,062	16,817	12,828	11,942	17,789	18,836	20,321	21,386
Operating Margin	11.68%	13.81%	10.53%	7.65%	12.09%	12.71%	13.29%	13.47%
Earnings before Tax (EBT) ¹	13,040	15,800	12,537	8,109	12,792	16,476	18,424	19,866
Net income ¹	9,216	10,228	8,620	5,567	9,554	14,108	13,825	14,866
Net margin	7.15%	8.4%	7.07%	3.56%	6.49%	9.52%	9.04%	9.37%
EPS ²	13.12	14.56	12.27	7.930	13.60	20.80	19.81	21.35
Free Cash Flow ¹	13,404	11,212	7,309	5,925	12,227	10,675	13,420	14,090
FCF margin	10.39%	9.21%	6%	3.79%	8.31%	7.2%	8.78%	8.88%
FCF Conversion (EBITDA)	59.47%	46.16%	36.47%	29.06%	48.86%	40.59%	49.07%	48.97%
FCF Conversion (Net income)	145.44%	109.62%	84.79%	106.43%	127.98%	75.67%	97.07%	94.78%
Dividend per Share ²	6.250	6.750	7.000	7.250	7.750	8.177	8.951	9.688
Announcement Date	22/01/20	27/01/21	26/01/22	26/01/23	25/01/24	-	-	-

¹SEK in Million²SEK

Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: December	2021 S1	2021 Q4	2022 Q1	2022 Q2	2022 Q3	2022 Q4	2023 Q1	2023 Q2	2023 S1	2023 Q3	2023 Q4	2024 Q1	2024 Q2	2024 Q3	2024 Q4	2025 Q1	2025 Q2
Net sales ¹	56,496	34,226	34,301	37,929	40,109	43,834	42,926	43,930	86,856	43,516	36,625	34,850	36,989	37,424	38,764	37,181	37,544
EBITDA ¹	-	4,750	4,553	4,954	4,869	6,014	6,302	6,649	-	7,287	6,393	6,366	6,508	6,963	6,850	6,315	6,856
EBIT ¹	6,650	2,827	2,563	2,882	2,703	3,794	4,072	4,420	-	5,034	4,583	4,134	4,477	4,914	5,187	4,409	4,565
Operating Margin	11.77%	8.26%	7.47%	7.6%	6.74%	8.66%	9.49%	10.06%	-	11.57%	12.51%	11.86%	12.1%	13.13%	13.38%	11.86%	12.16%
Earnings before Tax (EBT) ¹	-	2,564	942	2,143	2,123	2,901	3,504	3,268	-	2,376	3,842	3,527	4,158	4,610	4,804	4,168	4,351
Net income ¹	-	1,982	306	1,485	1,567	2,209	2,663	2,479	-	1,586	2,826	11,383	2,955	3,305	3,537	3,126	3,264
Net margin	-	5.79%	0.89%	3.92%	3.91%	5.04%	6.2%	5.64%	-	3.64%	7.72%	32.66%	7.99%	8.83%	9.12%	8.41%	8.69%
EPS ²	-	2.820	0.4400	2.110	2.230	3.150	3.790	3.530	-	2.260	4.020	16.21	4.206	4.704	5.035	4.450	4.650
Dividend per Share ²	-	7.000	-	-	-	-	-	-	-	-	-	-	4.943	1.885	1.885	2.018	2.018
Announcement Date	16/07/21	26/01/22	22/04/22	21/07/22	27/10/22	26/01/23	27/04/23	20/07/23	20/07/23	26/10/23	25/01/24	25/04/24	-	-	-	-	-

¹SEK in Million²SEK

Estimates

Balance Sheet Analysis

Fiscal Period: December	2019	2020	2021	2022	2023	2024	2025	2026
Net Debt ¹	50,940	42,688	55,433	62,869	53,703	30,736	24,488	17,827
Net Cash position ¹	-	-	-	-	-	-	-	-
Leverage (Debt/EBITDA)	2.26 x	1.757 x	2.766 x	3.083 x	2.146 x	1.169 x	0.8955 x	0.6196 x
Free Cash Flow ¹	13,404	11,212	7,309	5,925	12,227	10,675	13,420	14,090
ROE (net income / shareholders' equity)	18.4%	18.2%	15%	8.1%	12.5%	16.5%	16.4%	16.2%
ROA (Net income/ Total Assets)	6.17%	6.45%	5.23%	2.89%	4.62%	6.28%	7.35%	7.53%
Assets ¹	1,49,305	1,58,470	1,64,847	1,92,823	2,06,797	2,24,584	1,87,967	1,97,470
Book Value Per Share ²	77.10	77.40	85.30	95.90	101.0	120.0	128.0	135.0
Cash Flow per Share ²	27.60	25.40	20.90	18.30	27.20	25.60	28.60	30.40
Capex ¹	5,947	6,607	7,358	6,949	6,850	7,310	7,693	7,853
Capex / Sales	4.61%	5.43%	6.04%	4.45%	4.66%	4.93%	5.03%	4.95%
Announcement Date	22/01/20	27/01/21	26/01/22	26/01/23	25/01/24	-	-	-

¹SEK in Million²SEK

Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Ratings for Essity

Trading Rating

Investor Rating

ESG Refinitiv

More Ratings

Analysts' Consensus

Sell

Buy

Mean consensus

OUTPERFORM

Number of Analysts

Last Close Price

274.7 SEK

Average target price

290.4 SEK

Spread / Average Target

+5.73%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Other Personal Products

	1st Jan change	Capi.
PROCTER & GAMBLE COMPANY	+11.82%	388B
UNILEVER PLC	+10.21%	132B
HINDUSTAN UNILEVER LIMITED	-15.32%	62.43B
ESTEE LAUDER	-10.97%	47.67B
KENVUE INC.	-11.68%	36.76B
BEIERSDORF	+6.08%	34.51B
GODREJ CONSUMER PRODUCTS LIMITED	+10.52%	15.35B
DABUR INDIA LIMITED	-4.74%	11.3B
COLGATE-PALMOLIVE (INDIA) LIMITED	+13.07%	9.11B

Other Personal Products