ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Natural Grocers by Vitamin Cottage's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 10.46%.
As of today (2026-06-25), Natural Grocers by Vitamin Cottage's WACC % is 11.12%. Natural Grocers by Vitamin Cottage's ROC % is 9.37% (calculated using TTM income statement data).
Natural Grocers by Vitamin Cottage earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Natural Grocers by Vitamin Cottage (NYSE:NGVC) 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, Natural Grocers by Vitamin Cottage's WACC % is 11.12%. Natural Grocers by Vitamin Cottage's ROC % is 9.37% (calculated using TTM income statement data).
Natural Grocers by Vitamin Cottage earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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.
Natural Grocers by Vitamin Cottage ROC % Related Terms
Natural Grocers by Vitamin Cottage ROC % 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.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) 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.
Natural Grocers by Vitamin Cottage (NGVC) has a ROC % of 10.46% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Natural Grocers by Vitamin Cottage and its competitors.
Is Natural Grocers by Vitamin Cottage's ROC % too high?
Natural Grocers by Vitamin Cottage's current ROC % is 10.46%. The Retail - Defensive industry median ROC % is 5.54. Natural Grocers by Vitamin Cottage's value of 10.46% is 88.8% above this industry median. 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 ROC % compare to VLGEA and YSWY?
Natural Grocers by Vitamin Cottage's ROC % of 10.46% can be compared against companies in the Retail - Defensive industry. The industry median ROC % is 5.54. Natural Grocers by Vitamin Cottage's value of 10.46% is 88.8% 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 - Defensive company?
The median ROC % among Retail - Defensive companies is 5.54, based on 309 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. Natural Grocers by Vitamin Cottage's current ROC % of 10.46% is 88.8% 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 Natural Grocers by Vitamin Cottage and its competitors. For the Retail - Defensive industry, the median ROC % is 5.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Natural Grocers by Vitamin Cottage's current ROC % is 10.46%. 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 ROC % is 10.46% and 88.8% above the Retail - Defensive industry median of 5.54. 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 ROC % calculated?
ROC % is calculated from a company's financial statements. For Natural Grocers by Vitamin Cottage (NGVC), the current ROC % is 10.46% 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:
ROC %: 10.46%
GF Value™: $27.27 vs. price of $32.69 (19.9% above fair value)
Industry Position: 88.8% above the Retail - Defensive median
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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