ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. United Natural Foods's annualized return on invested capital (ROIC %) for the quarter that ended in Apr. 2026 was 5.71%.
As of today (2026-06-25), United Natural Foods's WACC % is 6.10%. United Natural Foods's ROIC % is 2.76% (calculated using TTM income statement data).
United Natural Foods earns returns that do not match up to its cost of capital. It will destroy value as it grows.
United Natural Foods (BSP:U2NF34) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, United Natural Foods's WACC % is 6.10%. United Natural Foods's ROIC % is 2.76% (calculated using TTM income statement data).
United Natural Foods 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 %, ROIC % 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.
* 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 Food Distribution subindustry, United Natural Foods's ROIC %, along with its competitors' market caps and ROIC % 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.
United Natural Foods ROIC % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, United Natural Foods's ROIC % distribution charts can be found below:
* The bar in red indicates where United Natural Foods's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Apr. 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.
United Natural Foods (BSP:U2NF34) has a ROIC % of 5.71% as of Apr. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on United Natural Foods and its competitors.
Is United Natural Foods' ROIC % too high?
United Natural Foods' current ROIC % is 5.71%. The Retail - Defensive industry median ROIC % is 5.54. United Natural Foods' value of 5.71% is 3.1% above this industry median. Overall, United Natural Foods has a GF Score™ of 30/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does United Natural Foods' ROIC % compare to CHEF and ANDE?
United Natural Foods' ROIC % of 5.71% can be compared against companies in the Retail - Defensive industry. The industry median ROIC % is 5.54. United Natural Foods' value of 5.71% is 3.1% 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 ROIC % for a Retail - Defensive company?
The median ROIC % among Retail - Defensive companies is 5.54, based on 309 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. United Natural Foods's current ROIC % of 5.71% is 3.1% 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on United Natural Foods and its competitors. For the Retail - Defensive industry, the median ROIC % is 5.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. United Natural Foods's current ROIC % is 5.71%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is United Natural Foods stock overvalued right now?
Based on GuruFocus' analysis, United Natural Foods (BSP:U2NF34) is currently considered Significantly Overvalued. The stock's GF Value™ is R$28.37, compared to a current price of R$67.09 — trading 136.5% above its estimated fair value. The current ROIC % is 5.71% and 3.1% above the Retail - Defensive industry median of 5.54. United Natural Foods' overall GF Score™ is 30/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For United Natural Foods (BSP:U2NF34), the current ROIC % is 5.71% as of Apr. 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 United Natural Foods (BSP:U2NF34) Overvalued in 2026?
Based on GuruFocus' analysis, United Natural Foods stock appears to be overvalued.
The current stock price of R$67.09 is trading 136.5% above its estimated GF Value™ of R$28.37.
GuruFocus considers United Natural Foods to be Significantly Overvalued.
Key valuation signals for BSP:U2NF34:
ROIC %: 5.71%
GF Value™: R$28.37 vs. price of R$67.09 (136.5% above fair value)
Industry Position: 3.1% above the Retail - Defensive median
No single metric tells the full story. See the BSP:U2NF34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
United Natural Foods Inc is a wholesale distributor of natural, organic and specialty foods and nonfood products across North America. The company's products consist of national, regional and private label brands grouped into grocery and general merchandise, produce, perishables and frozen foods, nutritional supplements and sports nutrition, bulk and foodservice products, and personal care items. United Natural Foods serves various retail formats including conventional supermarket chains, natural product superstores, independent retail operators and foodservice channels such as e-commerce platforms. The company's operations are comprised of principal divisions: the wholesale division; the retail division; and other.
30GF Score
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