Essity AB Class B
ESSITY B: XSTO (SWE)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| SEK 942.00 | Fjbtq | Cbrqlqx |
No-Moat Essity's Volumes Continue to Deteriorate Despite More Benign Pricing Actions
Business Strategy and Outlook
We think Essity faces obstacles to amassing brand power in its portfolio. Competition from both branded and private-label offerings in the global personal-care and hygiene category, plus low barriers to entry and a lack of switching costs, hampers Essity's ability to form the entrenched retail relationships needed to secure a competitive edge. We assign Essity a no-moat rating.