Essity ABMEX:ESSITYBN 89 Return-on-Tangible-Equity is 38.52% as of Mar. 2026, which is 79% below its 10-year median of 186.54. GuruFocus rates MEX:ESSITYBN with a GF Score™ of 89/100 and a GF Value™ of MXN486.22. The stock has 3 warning signs investors should review. Among 1,876 Consumer Packaged Goods companies, Essity AB ranks better than 92.22% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Essity AB's annualized net income for the quarter that ended in Mar. 2026 was MXN22,350 Mil. Essity AB's average shareholder tangible equity for the quarter that ended in Mar. 2026 was MXN58,020 Mil. Therefore, Essity AB's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 38.52%.
The historical rank and industry rank for Essity AB's Return-on-Tangible-Equity or its related term are showing as below:
MEX:ESSITYBN'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 28.67 Med: 186.54 Max: 1126.43
Current: 47.05
During the past 13 years, Essity AB's highest Return-on-Tangible-Equity was 1,126.43%. The lowest was 28.67%. And the median was 186.54%.
MEX:ESSITYBN's Return-on-Tangible-Equity is ranked better than 92.22% of 1876
companies
in the Consumer Packaged Goods industry
Industry Median: 7.695
vs MEX:ESSITYBN: 47.05
Essity AB (MEX:ESSITYBN) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Essity AB Return-on-Tangible-Equity Related Terms
Essity AB Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Essity AB's Return-on-Tangible-Equity 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-Equity Comparison
For the Household & Personal Products subindustry, Essity AB's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Essity AB's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Essity AB's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 38.52% mean?
Essity AB (MEX:ESSITYBN) has a Return-on-Tangible-Equity of 38.52% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Essity AB and its competitors. This is 79% below median its historical median of 186.54. Over the past decade, Essity AB's Return-on-Tangible-Equity has ranged from 28.67 to 1,126.43. According to the industry distribution chart, Essity AB ranks #146 out of 1876 companies in the Consumer Packaged Goods industry, placing it in the top 7.8%.
Is Essity AB's Return-on-Tangible-Equity too high?
Essity AB's current Return-on-Tangible-Equity of 38.52% is 79% below median its 10-year median of 186.54. Over the past 10 years, this metric has ranged from a low of 28.67 to a high of 1,126.43. The Consumer Packaged Goods industry median Return-on-Tangible-Equity is 7.70. Essity AB's value of 38.52% is 400.6% above this industry median. Based on the distribution chart, Essity AB ranks #146 out of 1876 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-Equity compare to PG and CL?
According to the Consumer Packaged Goods industry distribution chart, Essity AB ranks #146 out of 1876 companies for Return-on-Tangible-Equity. This places Essity AB in the top 8% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.70. Essity AB's value of 38.52% is 400.6% above this benchmark. Historically, Essity AB's own Return-on-Tangible-Equity has ranged from 28.67 to 1,126.43 over the past decade. While the company's 10-year median is 186.54 vs. the industry median of 7.70, 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-Equity for a Consumer Packaged Goods company?
The median Return-on-Tangible-Equity among Consumer Packaged Goods companies is 7.70, based on 1,876 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Essity AB's current Return-on-Tangible-Equity of 38.52% is 400.6% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Essity AB and its competitors. For the Consumer Packaged Goods industry, the median Return-on-Tangible-Equity is 7.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Essity AB's current Return-on-Tangible-Equity is 38.52%, which is 79% below median its own 10-year median of 186.54. 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-Equity of 38.52%. The stock's GF Value™ is MXN486.22, compared to a current price of MXN501.28 — trading 3.1% above its estimated fair value. The current Return-on-Tangible-Equity is 38.52%, which is 79% below median its 10-year median of 186.54 and 400.6% above the Consumer Packaged Goods industry median of 7.70. 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Essity AB (MEX:ESSITYBN), the current Return-on-Tangible-Equity is 38.52% 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 3.1% above its estimated GF Value™ of MXN486.22.
Key valuation signals for MEX:ESSITYBN:
Return-on-Tangible-Equity: 38.52% (79% below median its 10-year median of 186.54)
GF Value™: MXN486.22 vs. price of MXN501.28 (3.1% above fair value)
Industry Position: 400.6% above the Consumer Packaged Goods median (#146 of 1876)
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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