Essity AB (CHIX:ESSIBS) ROCE %: 13.99% (As of Mar. 2026)

What is Essity AB ROCE %?

Essity AB CHIX:ESSIBS +1.40% 84 ROCE % is 13.99% as of Mar. 2026. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Essity AB's annualized ROCE % for the quarter that ended in Mar. 2026 was 13.99%.

Essity AB (CHIX:ESSIBs) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Essity AB ROCE % Related Terms

Essity AB ROCE % Historical Data

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The historical data trend for Essity AB's ROCE % 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.

Essity AB ROCE % Chart

Essity AB Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

ROCE %

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9.15

6.20

10.86

13.51

14.08

Essity AB Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
ROCE %	Get a 7-Day Free Trial															13.30	13.82	15.14	15.44	13.99

84GF Score

Essity AB CHIX:ESSIBS

ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.

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Essity AB ROCE % Calculation

Essity AB's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	18743	/	( ( (185284 - 45290)	+	(167116 - 40796) )	/ 2 )
	=	18743	/	( (139994	+	126320)	/ 2 )
	=	18743	/	133157
	=	14.08 %

Essity AB's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	17528	/	( ( (167116 - 40796)	+	(180857 - 56525) )	/ 2 )
	=	17528	/	( ( 126320	+	124332 )	/ 2 )
	=	17528	/	125326
	=	13.99 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 13.99% mean?

Essity AB (CHIX:ESSIBS) has a ROCE % of 13.99% as of Mar. 2026.

Is Essity AB's ROCE % too high?

Essity AB's current ROCE % is 13.99%. The Consumer Packaged Goods industry median ROCE % is 8.78. Essity AB's value of 13.99% is 59.4% above this industry median. 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 ROCE % compare to PG and CL?

Essity AB's ROCE % of 13.99% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROCE % is 8.78. Essity AB's value of 13.99% is 59.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for a Consumer Packaged Goods company?

The median ROCE % among Consumer Packaged Goods companies is 8.78, based on 1,938 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Essity AB's current ROCE % of 13.99% is 59.4% 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Consumer Packaged Goods industry, the median ROCE % is 8.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Essity AB's current ROCE % is 13.99%. 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 ROCE % is 13.99% and 59.4% above the Consumer Packaged Goods industry median of 8.78. 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 ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Essity AB (CHIX:ESSIBS), the current ROCE % is 13.99% 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:

ROCE %: 13.99%
GF Value™: kr266.06 vs. price of kr274.30 (3.1% above fair value)
GF Score™: 84/100 with 3 warning signs
Industry Position: 59.4% above the Consumer Packaged Goods median

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 AB Business Description

Industry Consumer Defensive Consumer Packaged Goods

Comparable Companies OSTO:LYKO A OSTO:CANDLE B XSAT:SIN OSTO:CLEM OSTO:LCLEAN PG XPAR:OR LSE:ULVR CL BOM:500696 LSE:RKT KVUE KMB EL XTER:HEN3 CHD XTER:BEI TSE:4452 BOM:531642 BOM:532424

Other Exchanges ETTYF:USA ESSITY A:Sweden ESSITY B:Sweden 1ESSI:Italy 0RQD:UK 0RQC:UK ESWB:Germany

Address Klarabergsviadukten 63, PO Box 200, Stockholm, SWE, SE-101 23

Website https://www.essity.com

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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kr274.30

Price

kr266.06

GF Value

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