ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Nick Scali's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 13.29%.
As of today (2026-06-25), Nick Scali's WACC % is 11.00%. Nick Scali's ROC % is 11.64% (calculated using TTM income statement data).
Nick Scali generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Nick Scali (ASX:NCK) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Nick Scali's WACC % is 11.00%. Nick Scali's ROC % is 11.64% (calculated using TTM income statement data).
Nick Scali generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of 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.
Nick Scali ROC % Related Terms
Nick Scali ROC % Historical Data
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The historical data trend for Nick Scali's ROC % 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.
Note:
The Operating Income data used here is two times the semi-annual (Dec. 2025) data.
The tax rate is limited to between 0% and 100%.
* 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.
Nick Scali (ASX:NCK) has a ROC % of 13.29% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Nick Scali and its competitors.
Is Nick Scali's ROC % too high?
Nick Scali's current ROC % is 13.29%. The Retail - Cyclical industry median ROC % is 4.37. Nick Scali's value of 13.29% is 204.1% above this industry median. Overall, Nick Scali has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nick Scali's ROC % compare to CASY and WSM?
Nick Scali's ROC % of 13.29% can be compared against companies in the Retail - Cyclical industry. The industry median ROC % is 4.37. Nick Scali's value of 13.29% is 204.1% 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 ROC % for a Retail - Cyclical company?
The median ROC % among Retail - Cyclical companies is 4.37, based on 1,113 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nick Scali's current ROC % of 13.29% is 204.1% 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Nick Scali and its competitors. For the Retail - Cyclical industry, the median ROC % is 4.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nick Scali's current ROC % is 13.29%. 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$16.45, compared to a current price of A$15.99 — trading 2.8% below its estimated fair value. The current ROC % is 13.29% and 204.1% above the Retail - Cyclical industry median of 4.37. Nick Scali's overall GF Score™ is 90/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Nick Scali (ASX:NCK), the current ROC % is 13.29% 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$15.99 is trading 2.8% below its estimated GF Value™ of A$16.45.
GuruFocus considers Nick Scali to be Fairly Valued.
Key valuation signals for ASX:NCK:
ROC %: 13.29%
GF Value™: A$16.45 vs. price of A$15.99 (2.8% below fair value)
Industry Position: 204.1% above the Retail - Cyclical median
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.
90GF Score
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