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.
We think favorable demographic trends and higher disposable income in emerging markets (38% of Essity’s 2021 net sales) will drive long-term per capita growth of health and hygiene products.
Essity is exposed to volatile input costs such as pulp and is not always able to pass on costs in the short term, leading to volatile earnings.
|
Metric
|
ESSITY B
|
PG
|
8113
|
|---|---|---|---|
Price/Earnings (Normalized) | 15.87 | 25.53 | 34.19 |
Price/Book Value | 2.39 | 7.99 | 4.26 |
Price/Sales | 1.41 | 4.91 | 3.21 |
Price/Cash Flow | 11.20 | 20.34 | 20.60 |
|
Metric
|
ESSITY B
|
PG
|
8113
|
|---|---|---|---|
Quick Ratio | 0.85 | 0.40 | 1.98 |
Current Ratio | 1.21 | 0.69 | 2.47 |
Interest Coverage | 6.94 | 20.73 | 16.10 |
|
Metric
|
ESSITY B
|
PG
|
8113
|
|---|---|---|---|
Return on Assets (Normalized) | 5.69% | 13.82% | 9.22% |
Return on Equity (Normalized) | 16.41% | 35.61% | 15.16% |
Return on Invested Capital (Normalized) | 9.11% | 20.62% | 12.92% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
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