Essity ABMEX:ESSITYBN 89 Return-on-Tangible-Asset is 9.84% as of Mar. 2026, which is 15% above its 10-year median of 8.57. GuruFocus rates MEX:ESSITYBN with a GF Score™ of 89/100 and a GF Value™ of MXN496.09. The stock has 3 warning signs investors should review. Among 1,991 Consumer Packaged Goods companies, Essity AB ranks better than 83.58% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Essity AB's annualizedNet Income for the quarter that ended in Mar. 2026 was MXN22,350 Mil. Essity AB's average total tangible assets for the quarter that ended in Mar. 2026 was MXN227,097 Mil. Therefore, Essity AB's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 9.84%.
The historical rank and industry rank for Essity AB's Return-on-Tangible-Asset or its related term are showing as below:
MEX:ESSITYBN'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 4.22 Med: 8.57 Max: 15.72
Current: 10.95
During the past 13 years, Essity AB's highest Return-on-Tangible-Asset was 15.72%. The lowest was 4.22%. And the median was 8.57%.
MEX:ESSITYBN's Return-on-Tangible-Asset is ranked better than 83.58% of 1991
companies
in the Consumer Packaged Goods industry
Industry Median: 3.39
vs MEX:ESSITYBN: 10.95
Essity AB (MEX:ESSITYBN) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Essity AB Return-on-Tangible-Asset Related Terms
Essity AB Return-on-Tangible-Asset Historical Data
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The historical data trend for Essity AB's Return-on-Tangible-Asset 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.
MEX:ESSITYBN vs PG, CL, KVUE: Return-on-Tangible-Asset Comparison
For the Household & Personal Products subindustry, Essity AB's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Essity AB's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Essity AB's Return-on-Tangible-Asset falls into.
* 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 9.84% mean?
Essity AB (MEX:ESSITYBN) has a Return-on-Tangible-Asset of 9.84% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Essity AB and its competitors. This is 15% above median its historical median of 8.57. Over the past decade, Essity AB's Return-on-Tangible-Asset has ranged from 4.22 to 15.72. According to the industry distribution chart, Essity AB ranks #327 out of 1991 companies in the Consumer Packaged Goods industry, placing it in the top 16.4%.
Is Essity AB's Return-on-Tangible-Asset too high?
Essity AB's current Return-on-Tangible-Asset of 9.84% is 15% above median its 10-year median of 8.57. Over the past 10 years, this metric has ranged from a low of 4.22 to a high of 15.72. The Consumer Packaged Goods industry median Return-on-Tangible-Asset is 3.39. Essity AB's value of 9.84% is 190.3% above this industry median. Based on the distribution chart, Essity AB ranks #327 out of 1991 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. 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 Return-on-Tangible-Asset compare to PG and CL?
According to the Consumer Packaged Goods industry distribution chart, Essity AB ranks #327 out of 1991 companies for Return-on-Tangible-Asset. This places Essity AB in the top 16% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.39. Essity AB's value of 9.84% is 190.3% above this benchmark. Historically, Essity AB's own Return-on-Tangible-Asset has ranged from 4.22 to 15.72 over the past decade. While the company's 10-year median is 8.57 vs. the industry median of 3.39, 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 Return-on-Tangible-Asset for a Consumer Packaged Goods company?
The median Return-on-Tangible-Asset among Consumer Packaged Goods companies is 3.39, based on 1,991 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Essity AB's current Return-on-Tangible-Asset of 9.84% is 190.3% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Essity AB and its competitors. For the Consumer Packaged Goods industry, the median Return-on-Tangible-Asset is 3.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Essity AB's current Return-on-Tangible-Asset is 9.84%, which is 15% above median its own 10-year median of 8.57. 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 (MEX:ESSITYBN) has a current Return-on-Tangible-Asset of 9.84%. The stock's GF Value™ is MXN496.09, compared to a current price of MXN501.28 — trading 1% above its estimated fair value. The current Return-on-Tangible-Asset is 9.84%, which is 15% above median its 10-year median of 8.57 and 190.3% above the Consumer Packaged Goods industry median of 3.39. Essity AB's overall GF Score™ is 89/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Essity AB (MEX:ESSITYBN), the current Return-on-Tangible-Asset is 9.84% 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 (MEX:ESSITYBN) Overvalued in 2026?
Based on GuruFocus' analysis, Essity AB stock appears to be overvalued.
The current stock price of MXN501.28 is trading 1% above its estimated GF Value™ of MXN496.09.
Key valuation signals for MEX:ESSITYBN:
Return-on-Tangible-Asset: 9.84% (15% above median its 10-year median of 8.57)
GF Value™: MXN496.09 vs. price of MXN501.28 (1% above fair value)
Industry Position: 190.3% above the Consumer Packaged Goods median (#327 of 1991)
No single metric tells the full story. See the MEX:ESSITYBN 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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