Essity ABMEX:ESSITYBN 89 ROC (Joel Greenblatt) % is 31.66% as of Mar. 2026, which is 41% above its 10-year median of 22.49. 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 1,973 Consumer Packaged Goods companies, Essity AB ranks better than 83.12% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Essity AB's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 31.66%.
The historical rank and industry rank for Essity AB's ROC (Joel Greenblatt) % or its related term are showing as below:
MEX:ESSITYBN'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 12.12 Med: 22.49 Max: 34.7
Current: 34.7
During the past 13 years, Essity AB's highest ROC (Joel Greenblatt) % was 34.70%. The lowest was 12.12%. And the median was 22.49%.
MEX:ESSITYBN's ROC (Joel Greenblatt) % is ranked better than 83.12% of 1973
companies
in the Consumer Packaged Goods industry
Industry Median: 12.07
vs MEX:ESSITYBN: 34.70
Essity AB's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 7.20% per year.
Essity AB (MEX:ESSITYBN) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
The historical data trend for Essity AB's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Household & Personal Products subindustry, Essity AB's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Essity AB's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Essity AB's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 31.66% mean?
Essity AB (MEX:ESSITYBN) has a ROC (Joel Greenblatt) % of 31.66% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Essity AB and its competitors. This is 41% above median its historical median of 22.49. Over the past decade, Essity AB's ROC (Joel Greenblatt) % has ranged from 12.12 to 34.70. According to the industry distribution chart, Essity AB ranks #333 out of 1973 companies in the Consumer Packaged Goods industry, placing it in the top 16.9%.
Is Essity AB's ROC (Joel Greenblatt) % too high?
Essity AB's current ROC (Joel Greenblatt) % of 31.66% is 41% above median its 10-year median of 22.49. Over the past 10 years, this metric has ranged from a low of 12.12 to a high of 34.70. The Consumer Packaged Goods industry median ROC (Joel Greenblatt) % is 12.07. Essity AB's value of 31.66% is 162.3% above this industry median. Based on the distribution chart, Essity AB ranks #333 out of 1973 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 ROC (Joel Greenblatt) % compare to PG and CL?
According to the Consumer Packaged Goods industry distribution chart, Essity AB ranks #333 out of 1973 companies for ROC (Joel Greenblatt) %. This places Essity AB in the top 17% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 12.07. Essity AB's value of 31.66% is 162.3% above this benchmark. Historically, Essity AB's own ROC (Joel Greenblatt) % has ranged from 12.12 to 34.70 over the past decade. While the company's 10-year median is 22.49 vs. the industry median of 12.07, 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 ROC (Joel Greenblatt) % for a Consumer Packaged Goods company?
The median ROC (Joel Greenblatt) % among Consumer Packaged Goods companies is 12.07, based on 1,973 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Essity AB's current ROC (Joel Greenblatt) % of 31.66% is 162.3% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Essity AB and its competitors. For the Consumer Packaged Goods industry, the median ROC (Joel Greenblatt) % is 12.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Essity AB's current ROC (Joel Greenblatt) % is 31.66%, which is 41% above median its own 10-year median of 22.49. 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 ROC (Joel Greenblatt) % of 31.66%. 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 ROC (Joel Greenblatt) % is 31.66%, which is 41% above median its 10-year median of 22.49 and 162.3% above the Consumer Packaged Goods industry median of 12.07. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Essity AB (MEX:ESSITYBN), the current ROC (Joel Greenblatt) % is 31.66% 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:
ROC (Joel Greenblatt) %: 31.66% (41% above median its 10-year median of 22.49)
GF Value™: MXN496.09 vs. price of MXN501.28 (1% above fair value)
Industry Position: 162.3% above the Consumer Packaged Goods median (#333 of 1973)
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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