ETTYF (Essity AB) Interest Coverage: 17.53 (As of Mar. 2026) — 68% Above Median


ETTYF Essity AB ETTYF
76 GF Score
Price $27.73
GF Value $27.44
Valuation Fairly Valued
! 3 Warning Signs
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What is Essity AB Interest Coverage?

Essity AB ETTYF 76 Interest Coverage is 17.53 as of Mar. 2026, which is 68% above its 10-year median of 10.44. GuruFocus rates ETTYF with a GF Score™ of 76/100 and a GF Value™ of $27.44 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,513 Consumer Packaged Goods companies, Essity AB ranks better than 59.48% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Essity AB's Operating Income for the three months ended in Mar. 2026 was $470 Mil. Essity AB's Interest Expense for the three months ended in Mar. 2026 was $-27 Mil. Essity AB's interest coverage for the quarter that ended in Mar. 2026 was 17.53. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Essity AB's Interest Coverage or its related term are showing as below:

ETTYF' s Interest Coverage Range Over the Past 10 Years
Min: 6.27   Med: 10.44   Max: 16.13
Current: 14.69


ETTYF's Interest Coverage is ranked better than
59.48% of 1513 companies
in the Consumer Packaged Goods industry
Industry Median: 8.61 vs ETTYF: 14.69

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Essity AB  (OTCPK:ETTYF) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Essity AB Interest Coverage Related Terms


Essity AB Interest Coverage Historical Data

* Premium members only.

The historical data trend for Essity AB's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Essity AB Interest Coverage Chart

Essity AB Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.13 6.52 6.27 8.23 11.74

Essity AB Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.90 13.33 13.11 15.73 17.53

ETTYF vs PG, CL, KVUE: Interest Coverage Comparison

For the Household & Personal Products subindustry, Essity AB's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Essity AB Interest Coverage vs Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Essity AB's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Essity AB's Interest Coverage falls into.


ETTYF
76GF Score
Essity AB ETTYF
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Essity AB Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Essity AB's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Essity AB's Interest Expense was $-170 Mil. Its Operating Income was $1,999 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,301 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*1999.139/-170.227
=11.74

Essity AB's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Essity AB's Interest Expense was $-27 Mil. Its Operating Income was $470 Mil. And its Long-Term Debt & Capital Lease Obligation was $0 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*470.313/-26.832
=17.53

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 17.53 mean?
Essity AB (ETTYF) has a Interest Coverage of 17.53 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Essity AB and its competitors. This is 68% above median its historical median of 10.44. Over the past decade, Essity AB's Interest Coverage has ranged from 6.27 to 16.13. According to the industry distribution chart, Essity AB ranks #613 out of 1513 companies in the Consumer Packaged Goods industry, placing it in the top 40.5%.
Is Essity AB's Interest Coverage too high?
Essity AB's current Interest Coverage of 17.53 is 68% above median its 10-year median of 10.44. Over the past 10 years, this metric has ranged from a low of 6.27 to a high of 16.13. The Consumer Packaged Goods industry median Interest Coverage is 8.61. Essity AB's value of 17.53 is 103.6% above this industry median. Based on the distribution chart, Essity AB ranks #613 out of 1513 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Essity AB has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Essity AB's Interest Coverage compare to PG and CL?
According to the Consumer Packaged Goods industry distribution chart, Essity AB ranks #613 out of 1513 companies for Interest Coverage. This puts Essity AB in the upper half of its industry. The industry median Interest Coverage is 8.61. Essity AB's value of 17.53 is 103.6% above this benchmark. Historically, Essity AB's own Interest Coverage has ranged from 6.27 to 16.13 over the past decade. While the company's 10-year median is 10.44 vs. the industry median of 8.61, Essity AB has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Consumer Packaged Goods company?
The median Interest Coverage among Consumer Packaged Goods companies is 8.61, based on 1,513 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Essity AB's current Interest Coverage of 17.53 is 103.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Essity AB and its competitors. For the Consumer Packaged Goods industry, the median Interest Coverage is 8.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Essity AB's current Interest Coverage is 17.53, which is 68% above median its own 10-year median of 10.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Essity AB stock overvalued right now?
Based on GuruFocus' analysis, Essity AB (ETTYF) is currently considered Fairly Valued. The stock's GF Value™ is $27.44, compared to a current price of $27.73 — trading 1.1% above its estimated fair value. The current Interest Coverage is 17.53, which is 68% above median its 10-year median of 10.44 and 103.6% above the Consumer Packaged Goods industry median of 8.61. Essity AB's overall GF Score™ is 76/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Essity AB (ETTYF), the current Interest Coverage is 17.53 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Essity AB (ETTYF) Overvalued in 2026?

Based on GuruFocus' analysis, Essity AB stock appears to be overvalued. The current stock price of $27.73 is trading 1.1% above its estimated GF Value™ of $27.44. GuruFocus considers Essity AB to be Fairly Valued.

Key valuation signals for ETTYF:

  • Interest Coverage: 17.53 (68% above median its 10-year median of 10.44)
  • GF Value™: $27.44 vs. price of $27.73 (1.1% above fair value)
  • GF Score™: 76/100 with 3 warning signs
  • Industry Position: 103.6% above the Consumer Packaged Goods median (#613 of 1513)

No single metric tells the full story. See the ETTYF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Essity AB Business Description

Address Klarabergsviadukten 63, PO Box 200, Stockholm, SWE, SE-101 23
Essity is a health and hygiene company spun out of Svenska Cellulosa in June 2017. Essity's products span the feminine care, baby care, toilet paper, facial tissue, and wet wipes categories, as well as hand soap, hand sanitizers, and tissue dispensers for institutional customers. Essity also offers medical solutions in the form of wound care, orthopedics, and compression therapy, accounting for around 8% of net sales. Essity operates in 150 markets and generates 61% of its revenue in Europe.
76GF Score

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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$27.73
Price
$27.44
GF Value