NicholsLSE:NICL -1.85%74 ROA % is 19.78% as of Dec. 2025, which is 29% above its 10-year median of 15.31. GuruFocus rates LSE:NICL with a GF Score™ of 74/100 and a GF Value™ of £11.14 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 116 Beverages - Non-Alcoholic companies, Nichols ranks better than 90.52% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Nichols's annualizedNet Income for the quarter that ended in Dec. 2025 was £25.8 Mil.
Nichols's average Total Assets over the quarter that ended in Dec. 2025 was £130.6 Mil. Therefore, Nichols's annualized ROA % for the quarter that ended in Dec. 2025 was 19.78%.
The historical rank and industry rank for Nichols's ROA % or its related term are showing as below:
LSE:NICL'
s ROA % Range Over the Past 10 Years
Min: -16 Med: 15.31 Max: 23.69
Current: 16.81
During the past 13 years, Nichols's highest ROA % was 23.69%. The lowest was -16.00%. And the median was 15.31%.
LSE:NICL's ROA % is ranked better than 90.52% of 116
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 5.595
vs LSE:NICL: 16.81
Nichols (LSE:NICL) 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 two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) 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.
Nichols ROA % Related Terms
Nichols ROA % Historical Data
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The historical data trend for Nichols'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 Beverages - Non-Alcoholic subindustry, Nichols'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.
Nichols ROA % vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Nichols's ROA % distribution charts can be found below:
* The bar in red indicates where Nichols'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 two times the semi-annual (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Nichols (LSE:NICL) has a ROA % of 19.78% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Nichols and its competitors. This is 29% above median its historical median of 15.31. According to the industry distribution chart, Nichols ranks #11 out of 116 companies in the Beverages - Non-Alcoholic industry, placing it in the top 9.5%.
Is Nichols' ROA % too high?
Nichols' current ROA % of 19.78% is 29% above median its 10-year median of 15.31. The Beverages - Non-Alcoholic industry median ROA % is 5.60. Nichols' value of 19.78% is 253.5% above this industry median. Based on the distribution chart, Nichols ranks #11 out of 116 companies in the Beverages - Non-Alcoholic industry, which is in the top quartile — a strong position relative to peers. Overall, Nichols has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nichols' ROA % compare to KO and PEP?
According to the Beverages - Non-Alcoholic industry distribution chart, Nichols ranks #11 out of 116 companies for ROA %. This places Nichols in the top 10% of its industry — outperforming the majority of peers. The industry median ROA % is 5.60. Nichols' value of 19.78% is 253.5% above this benchmark. While the company's 10-year median is 15.31 vs. the industry median of 5.60, Nichols 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 Beverages - Non-Alcoholic company?
The median ROA % among Beverages - Non-Alcoholic companies is 5.60, based on 116 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. Nichols's current ROA % of 19.78% is 253.5% 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 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 Nichols and its competitors. For the Beverages - Non-Alcoholic industry, the median ROA % is 5.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nichols's current ROA % is 19.78%, which is 29% above median its own 10-year median of 15.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nichols stock overvalued right now?
Based on GuruFocus' analysis, Nichols (LSE:NICL) is currently considered Modestly Undervalued. The stock's GF Value™ is £11.14, compared to a current price of £9.54 — trading 14.4% below its estimated fair value. The current ROA % is 19.78%, which is 29% above median its 10-year median of 15.31 and 253.5% above the Beverages - Non-Alcoholic industry median of 5.60. Nichols' overall GF Score™ is 74/100 with 1 warning sign 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 Nichols (LSE:NICL), the current ROA % is 19.78% 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 Nichols (LSE:NICL) Overvalued in 2026?
Based on GuruFocus' analysis, Nichols stock appears to be undervalued.
The current stock price of £9.54 is trading 14.4% below its estimated GF Value™ of £11.14.
GuruFocus considers Nichols to be Modestly Undervalued.
Key valuation signals for LSE:NICL:
ROA %: 19.78% (29% above median its 10-year median of 15.31)
GF Value™: £11.14 vs. price of £9.54 (14.4% below fair value)
Industry Position: 253.5% above the Beverages - Non-Alcoholic median (#11 of 116)
No single metric tells the full story. See the LSE:NICL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nichols PLC is an international soft drinks company that sells products in both the still and carbonated categories. The company markets its products under the Vimto brand, which is popular in the UK and around the globe, particularly in the Middle East & Africa. Other brands in its portfolio include Slush Puppie, Starslush, Fryst, Icee, Levi Roots, & Sunkist. Geographically, the majority of the company's revenue comes from the United Kingdom. The company has one segment, which includes Packaged, comprising the Group's manufactured concentrate & packaged bottle & can sales for distribution through grocery stores, wholesalers, convenience stores, & independent retailers. Out of Home comprises the Group's postmix soft drinks, premium mixers, & ICEE frozen drinks for consumption out of home.
74GF Score
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