Essity ABCHIX:ESSIBS +1.40%84 ROA % is 6.64% as of Mar. 2026, which is 20% above its 10-year median of 5.53. GuruFocus rates CHIX:ESSIBS with a GF Score™ of 84/100 and a GF Value™ of kr266.06 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,990 Consumer Packaged Goods companies, Essity AB ranks better than 72.91% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Essity AB's annualizedNet Income for the quarter that ended in Mar. 2026 was kr11,548 Mil.
Essity AB's average Total Assets over the quarter that ended in Mar. 2026 was kr173,987 Mil. Therefore, Essity AB's annualized ROA % for the quarter that ended in Mar. 2026 was 6.64%.
The historical rank and industry rank for Essity AB's ROA % or its related term are showing as below:
CHIX:ESSIBs'
s ROA % Range Over the Past 10 Years
Min: 2.89 Med: 5.53 Max: 10.76
Current: 7.3
During the past 13 years, Essity AB's highest ROA % was 10.76%. The lowest was 2.89%. And the median was 5.53%.
CHIX:ESSIBs's ROA % is ranked better than 72.91% of 1990
companies
in the Consumer Packaged Goods industry
Industry Median: 3.26
vs CHIX:ESSIBs: 7.30
Essity AB (CHIX:ESSIBs) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Essity AB ROA % Related Terms
Essity AB ROA % Historical Data
* Premium members only.
The historical data trend for Essity AB's ROA % 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.
For the Household & Personal Products subindustry, Essity AB's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Essity AB's ROA % distribution charts can be found below:
* The bar in red indicates where Essity AB's ROA % 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 ROA %, the net income of the last fiscal year and the average total 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.
ROA % is displayed in the 30-year financial page.
Essity AB (CHIX:ESSIBS) has a ROA % of 6.64% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Essity AB and its competitors. This is 20% above median its historical median of 5.53. Over the past decade, Essity AB's ROA % has ranged from 2.89 to 10.76. According to the industry distribution chart, Essity AB ranks #539 out of 1990 companies in the Consumer Packaged Goods industry, placing it in the top 27.1%.
Is Essity AB's ROA % too high?
Essity AB's current ROA % of 6.64% is 20% above median its 10-year median of 5.53. Over the past 10 years, this metric has ranged from a low of 2.89 to a high of 10.76. The Consumer Packaged Goods industry median ROA % is 3.26. Essity AB's value of 6.64% is 103.7% above this industry median. Based on the distribution chart, Essity AB ranks #539 out of 1990 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Essity AB has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Essity AB's ROA % compare to PG and CL?
According to the Consumer Packaged Goods industry distribution chart, Essity AB ranks #539 out of 1990 companies for ROA %. This puts Essity AB in the upper half of its industry. The industry median ROA % is 3.26. Essity AB's value of 6.64% is 103.7% above this benchmark. Historically, Essity AB's own ROA % has ranged from 2.89 to 10.76 over the past decade. While the company's 10-year median is 5.53 vs. the industry median of 3.26, 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 ROA % for a Consumer Packaged Goods company?
The median ROA % among Consumer Packaged Goods companies is 3.26, based on 1,990 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Essity AB's current ROA % of 6.64% is 103.7% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Essity AB and its competitors. For the Consumer Packaged Goods industry, the median ROA % is 3.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Essity AB's current ROA % is 6.64%, which is 20% above median its own 10-year median of 5.53. 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 (CHIX:ESSIBS) is currently considered Fairly Valued. The stock's GF Value™ is kr266.06, compared to a current price of kr274.30 — trading 3.1% above its estimated fair value. The current ROA % is 6.64%, which is 20% above median its 10-year median of 5.53 and 103.7% above the Consumer Packaged Goods industry median of 3.26. Essity AB's overall GF Score™ is 84/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Essity AB (CHIX:ESSIBS), the current ROA % is 6.64% 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 (CHIX:ESSIBS) Overvalued in 2026?
Based on GuruFocus' analysis, Essity AB stock appears to be overvalued.
The current stock price of kr274.30 is trading 3.1% above its estimated GF Value™ of kr266.06.
GuruFocus considers Essity AB to be Fairly Valued.
Key valuation signals for CHIX:ESSIBS:
ROA %: 6.64% (20% above median its 10-year median of 5.53)
GF Value™: kr266.06 vs. price of kr274.30 (3.1% above fair value)
Industry Position: 103.7% above the Consumer Packaged Goods median (#539 of 1990)
No single metric tells the full story. See the CHIX:ESSIBS 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.
84GF Score
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