ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Grocery Outlet Holding's annualizedNet Income for the quarter that ended in Mar. 2026 was $-721 Mil.
Grocery Outlet Holding's average Total Assets over the quarter that ended in Mar. 2026 was $3,025 Mil. Therefore, Grocery Outlet Holding's annualized ROA % for the quarter that ended in Mar. 2026 was -23.85%.
The historical rank and industry rank for Grocery Outlet Holding's ROA % or its related term are showing as below:
GO'
s ROA % Range Over the Past 10 Years
Min: -11.93 Med: 1.56 Max: 4.57
Current: -11.93
During the past 10 years, Grocery Outlet Holding's highest ROA % was 4.57%. The lowest was -11.93%. And the median was 1.56%.
GO's ROA % is ranked worse than 92.95% of 312
companies
in the Retail - Defensive industry
Industry Median: 3.545
vs GO: -11.93
Grocery Outlet Holding (NAS:GO) 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.
* 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 Grocery Stores subindustry, Grocery Outlet Holding'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.
Grocery Outlet Holding ROA % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Grocery Outlet Holding's ROA % distribution charts can be found below:
* The bar in red indicates where Grocery Outlet Holding'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.
Grocery Outlet Holding (GO) has a ROA % of -23.85% 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 Grocery Outlet Holding and its competitors. According to the industry distribution chart, Grocery Outlet Holding ranks #290 out of 312 companies in the Retail - Defensive industry, placing it in the top 92.9%.
Is Grocery Outlet Holding's ROA % too high?
Grocery Outlet Holding's current ROA % is -23.85%. Based on the distribution chart, Grocery Outlet Holding ranks #290 out of 312 companies in the Retail - Defensive industry, which is in the bottom quartile relative to peers. Overall, Grocery Outlet Holding has a GF Score™ of 63/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Grocery Outlet Holding's ROA % compare to YSWY and VLGEA?
According to the Retail - Defensive industry distribution chart, Grocery Outlet Holding ranks #290 out of 312 companies for ROA %. This places Grocery Outlet Holding in the lower half of its industry. The industry median ROA % is 3.55. 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 Retail - Defensive company?
The median ROA % among Retail - Defensive companies is 3.55, based on 312 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. 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 Grocery Outlet Holding and its competitors. For the Retail - Defensive industry, the median ROA % is 3.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Grocery Outlet Holding's current ROA % is -23.85%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Grocery Outlet Holding stock overvalued right now?
Based on GuruFocus' analysis, Grocery Outlet Holding (GO) is currently considered Possible Value Trap. The stock's GF Value™ is $19.41, compared to a current price of $9.80 — trading 49.5% below its estimated fair value. The current ROA % is -23.85%. Grocery Outlet Holding's overall GF Score™ is 63/100 with 4 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 Grocery Outlet Holding (GO), the current ROA % is -23.85% 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 Grocery Outlet Holding (GO) Overvalued in 2026?
Based on GuruFocus' analysis, Grocery Outlet Holding stock appears to be undervalued.
The current stock price of $9.80 is trading 49.5% below its estimated GF Value™ of $19.41.
GuruFocus considers Grocery Outlet Holding to be Possible Value Trap.
Key valuation signals for GO:
ROA %: -23.85%
GF Value™: $19.41 vs. price of $9.80 (49.5% below fair value)
No single metric tells the full story. See the GO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Grocery Outlet Holding Corp is a grocery store operator in the United States. It is a retailer of quality, name-brand consumables and fresh products sold through a network of independently operated stores. The stores are run by Entrepreneurial independent operators which create a neighborhood feel through personalized customer service and a localized product offering.
63GF Score
Get the complete analysis for GO
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