GROO (Groovy Company) ROE %: 0.88% (As of Dec. 2025)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is Groovy Company ROE %?

Groovy Company GROO ROE % is 0.88% as of Dec. 2025. The stock has 4 warning signs investors should review. Among 2,691 Software companies, Groovy Company ranks better than 98.85% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Groovy Company's annualized net income for the quarter that ended in Dec. 2025 was $0.08 Mil. Groovy Company's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was $9.59 Mil. Therefore, Groovy Company's annualized ROE % for the quarter that ended in Dec. 2025 was 0.88%.

The historical rank and industry rank for Groovy Company's ROE % or its related term are showing as below:

GROO' s ROE % Range Over the Past 10 Years
Min: -3500   Med: -5.41   Max: 356.81
Current: 356.81

During the past 9 years, Groovy Company's highest ROE % was 356.81%. The lowest was -3,500.00%. And the median was -5.41%.

GROO's ROE % is ranked better than
98.85% of 2691 companies
in the Software industry
Industry Median: 4.86 vs GROO: 356.81

Groovy Company  (OTCPK:GROO) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2025 )
=Net Income/Total Stockholders Equity
=0.084/9.5945
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(0.084 / 0.8)*(0.8 / 9.8875)*(9.8875 / 9.5945)
=Net Margin %*Asset Turnover*Equity Multiplier
=10.5 %*0.0809*1.0305
=ROA %*Equity Multiplier
=0.85 %*1.0305
=0.88 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2025 )
=Net Income/Total Stockholders Equity
=0.084/9.5945
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (0.084 / 0.084) * (0.084 / -0.056) * (-0.056 / 0.8) * (0.8 / 9.8875) * (9.8875 / 9.5945)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1 * -1.5 * -7 % * 0.0809 * 1.0305
=0.88 %

Note: The net income data used here is four times the quarterly (Dec. 2025) net income data. The Revenue data used here is four times the quarterly (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Groovy Company ROE % Related Terms


Groovy Company ROE % Historical Data

* Premium members only.

The historical data trend for Groovy Company's ROE % 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.

Groovy Company ROE % Chart

Groovy Company Annual Data
Trend Jul10 Jul11 Jul12 Jul13 Jul14 Jul15 Dec23 Dec24 Dec25
ROE %
Get a 7-Day Free Trial Premium Member Only 0.00 0.00 0.00 0.00 132.85

Groovy Company Quarterly Data
Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Jul15 Mar19 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 Negative Equity 0.00 0.00 0.88

GROO vs GMTH, ATDS, MSFT: ROE % Comparison

For the Software - Infrastructure subindustry, Groovy Company's ROE %, along with its competitors' market caps and ROE % 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.


Groovy Company ROE % vs Software Industry

For the Software industry and Technology sector, Groovy Company's ROE % distribution charts can be found below:

* The bar in red indicates where Groovy Company's ROE % falls into.



Groovy Company ROE % Calculation

Groovy Company's annualized ROE % for the fiscal year that ended in Dec. 2025 is calculated as

ROE %=Net Income (A: Dec. 2025 )/( (Total Stockholders Equity (A: Dec. 2024 )+Total Stockholders Equity (A: Dec. 2025 ))/ count )
=7.45/( (-8.172+19.388)/ 2 )
=7.45/5.608
=132.85 %

Groovy Company's annualized ROE % for the quarter that ended in Dec. 2025 is calculated as

ROE %=Net Income (Q: Dec. 2025 )/( (Total Stockholders Equity (Q: Sep. 2025 )+Total Stockholders Equity (Q: Dec. 2025 ))/ count )
=0.084/( (-0.199+19.388)/ 2 )
=0.084/9.5945
=0.88 %

* 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 ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2025) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 0.88% mean?
Groovy Company (GROO) has a ROE % of 0.88% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Groovy Company and its competitors. According to the industry distribution chart, Groovy Company ranks #31 out of 2691 companies in the Software industry, placing it in the top 1.2%.
Is Groovy Company's ROE % too high?
Groovy Company's current ROE % is 0.88%. The Software industry median ROE % is 4.86. Groovy Company's value of 0.88% is 81.9% below this industry median. Based on the distribution chart, Groovy Company ranks #31 out of 2691 companies in the Software industry, which is in the top quartile — a strong position relative to peers.
How does Groovy Company's ROE % compare to GMTH and ATDS?
According to the Software industry distribution chart, Groovy Company ranks #31 out of 2691 companies for ROE %. This places Groovy Company in the top 1% of its industry — outperforming the majority of peers. The industry median ROE % is 4.86. Groovy Company's value of 0.88% is 81.9% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Software company?
The median ROE % among Software companies is 4.86, based on 2,691 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Groovy Company's current ROE % of 0.88% is 81.9% below 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Groovy Company and its competitors. For the Software industry, the median ROE % is 4.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Groovy Company's current ROE % is 0.88%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Groovy Company stock overvalued right now?
Groovy Company (GROO) has a current ROE % of 0.88%. The current ROE % is 0.88% and 81.9% below the Software industry median of 4.86. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Groovy Company (GROO), the current ROE % is 0.88% 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.

Groovy Company Business Description

Address 12 Daniel Road East, Fairfield, NJ, USA, 07004
Groovy Company Inc is a blockchain-based Platform as a Service (PaaS) designed to revolutionize the cannabis industry by providing transparency, security, and efficiency throughout the supply chain. It utilizes NFT-based QR codes to verify the authenticity and origin of cannabis products, combating counterfeiting and empowering consumers with verifiable information. The platform also includes a genetic library, rewards program, and data analytics tools to empower growers, manufacturers, retailers, and consumers.