Nick ScaliASX:NCK -0.86%92 Return-on-Tangible-Equity is 76.85% as of Dec. 2025, which is 30% above its 10-year median of 58.94. GuruFocus rates ASX:NCK with a GF Score™ of 92/100 and a GF Value™ of A$16.47 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,056 Retail - Cyclical companies, Nick Scali ranks better than 90.44% 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. Nick Scali's annualized net income for the quarter that ended in Dec. 2025 was A$82.0 Mil. Nick Scali's average shareholder tangible equity for the quarter that ended in Dec. 2025 was A$106.6 Mil. Therefore, Nick Scali's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 76.85%.
The historical rank and industry rank for Nick Scali's Return-on-Tangible-Equity or its related term are showing as below:
ASX:NCK'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 51.33 Med: 58.94 Max: 327.96
Current: 64.2
During the past 13 years, Nick Scali's highest Return-on-Tangible-Equity was 327.96%. The lowest was 51.33%. And the median was 58.94%.
ASX:NCK's Return-on-Tangible-Equity is ranked better than 90.44% of 1056
companies
in the Retail - Cyclical industry
Industry Median: 8.34
vs ASX:NCK: 64.20
Nick Scali (ASX:NCK) 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.
Nick Scali Return-on-Tangible-Equity Related Terms
Nick Scali Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Nick Scali'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.
ASX:NCK vs CASY, WSM, DKS: Return-on-Tangible-Equity Comparison
For the Specialty Retail subindustry, Nick Scali'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.
Nick Scali Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Nick Scali's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Nick Scali'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 two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 76.85% mean?
Nick Scali (ASX:NCK) has a Return-on-Tangible-Equity of 76.85% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Nick Scali and its competitors. This is 30% above median its historical median of 58.94. Over the past decade, Nick Scali's Return-on-Tangible-Equity has ranged from 51.33 to 327.96. According to the industry distribution chart, Nick Scali ranks #101 out of 1056 companies in the Retail - Cyclical industry, placing it in the top 9.6%.
Is Nick Scali's Return-on-Tangible-Equity too high?
Nick Scali's current Return-on-Tangible-Equity of 76.85% is 30% above median its 10-year median of 58.94. Over the past 10 years, this metric has ranged from a low of 51.33 to a high of 327.96. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.34. Nick Scali's value of 76.85% is 821.5% above this industry median. Based on the distribution chart, Nick Scali ranks #101 out of 1056 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Nick Scali has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nick Scali's Return-on-Tangible-Equity compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Nick Scali ranks #101 out of 1056 companies for Return-on-Tangible-Equity. This places Nick Scali in the top 10% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.34. Nick Scali's value of 76.85% is 821.5% above this benchmark. Historically, Nick Scali's own Return-on-Tangible-Equity has ranged from 51.33 to 327.96 over the past decade. While the company's 10-year median is 58.94 vs. the industry median of 8.34, Nick Scali 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 Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.34, based on 1,056 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. Nick Scali's current Return-on-Tangible-Equity of 76.85% is 821.5% 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 Nick Scali and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nick Scali's current Return-on-Tangible-Equity is 76.85%, which is 30% above median its own 10-year median of 58.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nick Scali stock overvalued right now?
Based on GuruFocus' analysis, Nick Scali (ASX:NCK) is currently considered Fairly Valued. The stock's GF Value™ is A$16.47, compared to a current price of A$16.10 — trading 2.2% below its estimated fair value. The current Return-on-Tangible-Equity is 76.85%, which is 30% above median its 10-year median of 58.94 and 821.5% above the Retail - Cyclical industry median of 8.34. Nick Scali's overall GF Score™ is 92/100 with 5 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 Nick Scali (ASX:NCK), the current Return-on-Tangible-Equity is 76.85% as of Dec. 2025. 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 Nick Scali (ASX:NCK) Overvalued in 2026?
Based on GuruFocus' analysis, Nick Scali stock appears to be undervalued.
The current stock price of A$16.10 is trading 2.2% below its estimated GF Value™ of A$16.47.
GuruFocus considers Nick Scali to be Fairly Valued.
Key valuation signals for ASX:NCK:
Return-on-Tangible-Equity: 76.85% (30% above median its 10-year median of 58.94)
GF Value™: A$16.47 vs. price of A$16.10 (2.2% below fair value)
Industry Position: 821.5% above the Retail - Cyclical median (#101 of 1056)
No single metric tells the full story. See the ASX:NCK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nick Scali Ltd engages in the sourcing and retailing of household furniture and related accessories in Australia and New Zealand. It offers products of Sofas & Armchairs, Living Room, Dining Room, Bedroom, and Rugs & Accessories. The Company has two reportable segments, being the retailing of furniture in Australia and New Zealand, as well as the United Kingdom.
92GF Score
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