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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Essity AB's Interest Coverage for the quarter that ended in Jun. 2026 was 14.42.
Essity AB's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.00.
As of today, Essity AB's Altman Z-Score is 3.01.
Essity AB (MIL:1ESSI) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Essity AB has the Financial Strength Rank of 6.
Essity AB Financial Strength Related Terms
MIL:1ESSI vs PG, CL, KVUE: Financial Strength Comparison
For the Household & Personal Products subindustry, Essity AB's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Essity AB's Financial Strength distribution charts can be found below:
* The bar in red indicates where Essity AB's Financial Strength falls into.
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:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Essity AB has a Z-score of 3.01, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 3.01 is strong.
* 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.
Essity AB (MIL:1ESSI) has a Financial Strength of 6 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Essity AB and its competitors. This is near median its historical median of 6.00. Over the past decade, Essity AB's Financial Strength has ranged from 6.00 to 9.00.
Is Essity AB's Financial Strength too high?
Essity AB's current Financial Strength of 6 is near median its 10-year median of 6.00. Over the past 10 years, this metric has ranged from a low of 6.00 to a high of 9.00. Overall, Essity AB has a GF Score™ of 89/100, reflecting its overall financial health beyond just this single metric.
How does Essity AB's Financial Strength compare to PG and CL?
Essity AB's Financial Strength of 6 can be compared against companies in the Consumer Packaged Goods industry. Historically, Essity AB's own Financial Strength has ranged from 6.00 to 9.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Consumer Packaged Goods company?
A good Financial Strength depends on the Consumer Packaged Goods industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Essity AB and its competitors. Essity AB's current Financial Strength is 6, which is near median its own 10-year median of 6.00. 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?
Essity AB (MIL:1ESSI) has a current Financial Strength of 6. The stock's GF Value™ is €23.73, compared to a current price of €24.51 — trading 3.3% above its estimated fair value. The current Financial Strength is 6, which is near median its 10-year median of 6.00. Essity AB's overall GF Score™ is 89/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Essity AB (MIL:1ESSI), the current Financial Strength is 6 as of Jun. 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 (MIL:1ESSI) Overvalued in 2026?
Based on GuruFocus' analysis, Essity AB stock appears to be overvalued.
The current stock price of €24.51 is trading 3.3% above its estimated GF Value™ of €23.73.
Key valuation signals for MIL:1ESSI:
Financial Strength: 6 (near median its 10-year median of 6.00)
GF Value™: €23.73 vs. price of €24.51 (3.3% above fair value)
No single metric tells the full story. See the MIL:1ESSI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
89GF Score
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