NGVC's ROA % is ranked better than 77.56% of 312
companies
in the Retail - Defensive industry
Industry Median: 3.56
vs NGVC: 7.20
Natural Grocers by Vitamin Cottage (NYSE:NGVC) 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.
Natural Grocers by Vitamin Cottage ROA % Related Terms
Natural Grocers by Vitamin Cottage ROA % Historical 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.
For the Grocery Stores subindustry, Natural Grocers by Vitamin Cottage'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.
Natural Grocers by Vitamin Cottage ROA % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Natural Grocers by Vitamin Cottage's ROA % distribution charts can be found below:
* The bar in red indicates where Natural Grocers by Vitamin Cottage'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.
Natural Grocers by Vitamin Cottage (NGVC) has a ROA % of 7.94% 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 Natural Grocers by Vitamin Cottage and its competitors. This is 113% above median its historical median of 3.73. Over the past decade, Natural Grocers by Vitamin Cottage's ROA % has ranged from 2.37 to 7.20. According to the industry distribution chart, Natural Grocers by Vitamin Cottage ranks #70 out of 312 companies in the Retail - Defensive industry, placing it in the top 22.4%.
Is Natural Grocers by Vitamin Cottage's ROA % too high?
Natural Grocers by Vitamin Cottage's current ROA % of 7.94% is 113% above median its 10-year median of 3.73. Over the past 10 years, this metric has ranged from a low of 2.37 to a high of 7.20. The Retail - Defensive industry median ROA % is 3.56. Natural Grocers by Vitamin Cottage's value of 7.94% is 123% above this industry median. Based on the distribution chart, Natural Grocers by Vitamin Cottage ranks #70 out of 312 companies in the Retail - Defensive industry, which is in the top quartile — a strong position relative to peers. Overall, Natural Grocers by Vitamin Cottage has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Natural Grocers by Vitamin Cottage's ROA % compare to VLGEA and YSWY?
According to the Retail - Defensive industry distribution chart, Natural Grocers by Vitamin Cottage ranks #70 out of 312 companies for ROA %. This places Natural Grocers by Vitamin Cottage in the top 22% of its industry — outperforming the majority of peers. The industry median ROA % is 3.56. Natural Grocers by Vitamin Cottage's value of 7.94% is 123% above this benchmark. Historically, Natural Grocers by Vitamin Cottage's own ROA % has ranged from 2.37 to 7.20 over the past decade. While the company's 10-year median is 3.73 vs. the industry median of 3.56, Natural Grocers by Vitamin Cottage 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 Retail - Defensive company?
The median ROA % among Retail - Defensive companies is 3.56, 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. Natural Grocers by Vitamin Cottage's current ROA % of 7.94% is 123% 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 Natural Grocers by Vitamin Cottage and its competitors. For the Retail - Defensive industry, the median ROA % is 3.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Natural Grocers by Vitamin Cottage's current ROA % is 7.94%, which is 113% above median its own 10-year median of 3.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Natural Grocers by Vitamin Cottage stock overvalued right now?
Based on GuruFocus' analysis, Natural Grocers by Vitamin Cottage (NGVC) is currently considered Modestly Overvalued. The stock's GF Value™ is $27.27, compared to a current price of $32.69 — trading 19.9% above its estimated fair value. The current ROA % is 7.94%, which is 113% above median its 10-year median of 3.73 and 123% above the Retail - Defensive industry median of 3.56. Natural Grocers by Vitamin Cottage's overall GF Score™ is 84/100 with 2 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 Natural Grocers by Vitamin Cottage (NGVC), the current ROA % is 7.94% 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 Natural Grocers by Vitamin Cottage (NGVC) Overvalued in 2026?
Based on GuruFocus' analysis, Natural Grocers by Vitamin Cottage stock appears to be overvalued.
The current stock price of $32.69 is trading 19.9% above its estimated GF Value™ of $27.27.
GuruFocus considers Natural Grocers by Vitamin Cottage to be Modestly Overvalued.
Key valuation signals for NGVC:
ROA %: 7.94% (113% above median its 10-year median of 3.73)
GF Value™: $27.27 vs. price of $32.69 (19.9% above fair value)
Industry Position: 123% above the Retail - Defensive median (#70 of 312)
No single metric tells the full story. See the NGVC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Natural Grocers by Vitamin Cottage Business Description
Natural Grocers by Vitamin Cottage Inc operates natural and organic grocery and dietary supplement stores. It offers the following product categories: natural and organic food, dietary supplements, natural body care, household, pet care products, books, and handouts. The Company has a single reporting segment, natural and organic retail stores, through which business is conducted. The company generates the majority of its revenue from grocery products and dietary supplements, and the rest from other products.
84GF Score
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