ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. EOG Resources's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 17.14%.
As of today (2026-06-28), EOG Resources's WACC % is 3.83%. EOG Resources's ROIC % is 14.05% (calculated using TTM income statement data).
EOG Resources 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.
EOG Resources (MEX:EOG) 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, EOG Resources's WACC % is 3.83%. EOG Resources's ROIC % is 14.05% (calculated using TTM income statement data).
EOG Resources 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 %, 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.
EOG Resources ROIC % Related Terms
EOG Resources ROIC % Historical Data
* Premium members only.
The historical data trend for EOG Resources's ROIC % 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.
For the Oil & Gas E&P subindustry, EOG Resources'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.
EOG Resources ROIC % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, EOG Resources's ROIC % distribution charts can be found below:
* The bar in red indicates where EOG Resources's ROIC % falls into.
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.
EOG Resources (MEX:EOG) has a ROIC % of 17.14% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on EOG Resources and its competitors.
Is EOG Resources' ROIC % too high?
EOG Resources' current ROIC % is 17.14%. The Oil & Gas industry median ROIC % is 3.66. EOG Resources' value of 17.14% is 368.9% above this industry median. Overall, EOG Resources has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does EOG Resources' ROIC % compare to FANG and OXY?
EOG Resources' ROIC % of 17.14% can be compared against companies in the Oil & Gas industry. The industry median ROIC % is 3.66. EOG Resources' value of 17.14% is 368.9% 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 an Oil & Gas company?
The median ROIC % among Oil & Gas companies is 3.66, based on 1,002 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. EOG Resources's current ROIC % of 17.14% is 368.9% 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 EOG Resources and its competitors. For the Oil & Gas industry, the median ROIC % is 3.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EOG Resources's current ROIC % is 17.14%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EOG Resources stock overvalued right now?
Based on GuruFocus' analysis, EOG Resources (MEX:EOG) is currently considered Fairly Valued. The stock's GF Value™ is MXN2,438.78, compared to a current price of MXN2,328.00 — trading 4.5% below its estimated fair value. The current ROIC % is 17.14% and 368.9% above the Oil & Gas industry median of 3.66. EOG Resources' overall GF Score™ is 79/100 with 2 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 EOG Resources (MEX:EOG), the current ROIC % is 17.14% 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 EOG Resources (MEX:EOG) Overvalued in 2026?
Based on GuruFocus' analysis, EOG Resources stock appears to be undervalued.
The current stock price of MXN2,328.00 is trading 4.5% below its estimated GF Value™ of MXN2,438.78.
GuruFocus considers EOG Resources to be Fairly Valued.
Key valuation signals for MEX:EOG:
ROIC %: 17.14%
GF Value™: MXN2,438.78 vs. price of MXN2,328.00 (4.5% below fair value)
Industry Position: 368.9% above the Oil & Gas median
No single metric tells the full story. See the MEX:EOG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
EOG Resources is an oil and gas producer with acreage in several US shale plays, primarily in the Permian Basin and the Eagle Ford. At the end of 2024, it reported net proven reserves of 4.7 billion barrels of oil equivalent. Net production averaged roughly 1,232 thousand barrels of oil equivalent per day in 2025 at a ratio of 69% oil and natural gas liquids and 31% natural gas.
79GF Score
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