ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Frontera Energy's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 0.09%.
As of today (2026-06-25), Frontera Energy's WACC % is 4.49%. Frontera Energy's ROIC % is -0.39% (calculated using TTM income statement data).
Frontera Energy earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Frontera Energy (MEX:FECN) 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, Frontera Energy's WACC % is 4.49%. Frontera Energy's ROIC % is -0.39% (calculated using TTM income statement data).
Frontera Energy 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.
Frontera Energy ROIC % Related Terms
Frontera Energy ROIC % Historical Data
* Premium members only.
The historical data trend for Frontera Energy'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, Frontera Energy'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.
Frontera Energy ROIC % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Frontera Energy's ROIC % distribution charts can be found below:
* The bar in red indicates where Frontera Energy'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.
Frontera Energy (MEX:FECN) has a ROIC % of 0.09% 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 Frontera Energy and its competitors.
Is Frontera Energy's ROIC % too high?
Frontera Energy's current ROIC % is 0.09%. The Oil & Gas industry median ROIC % is 3.63. Frontera Energy's value of 0.09% is 97.5% below this industry median. Overall, Frontera Energy has a GF Score™ of 43/100, reflecting its overall financial health beyond just this single metric.
How does Frontera Energy's ROIC % compare to COP and EOG?
Frontera Energy's ROIC % of 0.09% can be compared against companies in the Oil & Gas industry. The industry median ROIC % is 3.63. Frontera Energy's value of 0.09% is 97.5% 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 ROIC % for an Oil & Gas company?
The median ROIC % among Oil & Gas companies is 3.63, based on 997 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. Frontera Energy's current ROIC % of 0.09% is 97.5% 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 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 Frontera Energy and its competitors. For the Oil & Gas industry, the median ROIC % is 3.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Frontera Energy's current ROIC % is 0.09%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Frontera Energy stock overvalued right now?
Frontera Energy (MEX:FECN) has a current ROIC % of 0.09%. The stock's GF Value™ is MXN54.07, compared to a current price of MXN124.00 — trading 129.3% above its estimated fair value. The current ROIC % is 0.09% and 97.5% below the Oil & Gas industry median of 3.63. Frontera Energy's overall GF Score™ is 43/100 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 Frontera Energy (MEX:FECN), the current ROIC % is 0.09% 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 Frontera Energy (MEX:FECN) Overvalued in 2026?
Based on GuruFocus' analysis, Frontera Energy stock appears to be overvalued.
The current stock price of MXN124.00 is trading 129.3% above its estimated GF Value™ of MXN54.07.
Key valuation signals for MEX:FECN:
ROIC %: 0.09%
GF Value™: MXN54.07 vs. price of MXN124.00 (129.3% above fair value)
Industry Position: 97.5% below the Oil & Gas median
No single metric tells the full story. See the MEX:FECN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Frontera Energy Corp is a Canadian-based company engaged in the exploration, development, and production of crude oil and natural gas reserves in South America. It operates in three reportable segments such as Colombia which includes all upstream business activities of exploration and production in Colombia, Guyana Includes all offshore business activities of exploration in Guyana. and Infrastructure Colombia Includes the Companies investment in certain infrastructure, midstream and other assets, including storage, port, the reverse osmosis water treatment facility (SAARA), the palm oil plantation, other facilities in Colombia and the Companies investment in pipelines. The majority of its revenue is generated from the Colombia segment.
43GF Score
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