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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. NGL Energy Partners LP's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 4.97%.
As of today (2026-07-15), NGL Energy Partners LP's WACC % is 10.31%. NGL Energy Partners LP's ROIC % is 9.19% (calculated using TTM income statement data).
NGL Energy Partners LP earns returns that do not match up to its cost of capital. It will destroy value as it grows.
NGL Energy Partners LP (NYSE:NGL) 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, NGL Energy Partners LP's WACC % is 10.31%. NGL Energy Partners LP's ROIC % is 9.19% (calculated using TTM income statement data).
NGL Energy Partners LP 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 Oil & Gas Midstream subindustry, NGL Energy Partners LP'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.
NGL Energy Partners LP ROIC % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, NGL Energy Partners LP's ROIC % distribution charts can be found below:
* The bar in red indicates where NGL Energy Partners LP'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.
NGL Energy Partners LP (NGL) has a ROIC % of 4.97% 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 NGL Energy Partners LP and its competitors.
Is NGL Energy Partners LP's ROIC % too high?
NGL Energy Partners LP's current ROIC % is 4.97%. The Oil & Gas industry median ROIC % is 3.71. NGL Energy Partners LP's value of 4.97% is 34.1% above this industry median. Overall, NGL Energy Partners LP has a GF Score™ of 41/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NGL Energy Partners LP's ROIC % compare to GEL and TNK?
NGL Energy Partners LP's ROIC % of 4.97% can be compared against companies in the Oil & Gas industry. The industry median ROIC % is 3.71. NGL Energy Partners LP's value of 4.97% is 34.1% 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 an Oil & Gas company?
The median ROIC % among Oil & Gas companies is 3.71, based on 996 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. NGL Energy Partners LP's current ROIC % of 4.97% is 34.1% 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 NGL Energy Partners LP and its competitors. For the Oil & Gas industry, the median ROIC % is 3.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NGL Energy Partners LP's current ROIC % is 4.97%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NGL Energy Partners LP stock overvalued right now?
Based on GuruFocus' analysis, NGL Energy Partners LP (NGL) is currently considered Significantly Overvalued. The stock's GF Value™ is $4.39, compared to a current price of $15.25 — trading 247.3% above its estimated fair value. The current ROIC % is 4.97% and 34.1% above the Oil & Gas industry median of 3.71. NGL Energy Partners LP's overall GF Score™ is 41/100 with 6 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 NGL Energy Partners LP (NGL), the current ROIC % is 4.97% 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 NGL Energy Partners LP (NGL) Overvalued in 2026?
Based on GuruFocus' analysis, NGL Energy Partners LP stock appears to be overvalued.
The current stock price of $15.25 is trading 247.3% above its estimated GF Value™ of $4.39.
GuruFocus considers NGL Energy Partners LP to be Significantly Overvalued.
Key valuation signals for NGL:
ROIC %: 4.97%
GF Value™: $4.39 vs. price of $15.25 (247.3% above fair value)
Industry Position: 34.1% above the Oil & Gas median
No single metric tells the full story. See the NGL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NGL Energy Partners LP is a USA-based firm that owns and operates a vertically integrated energy business. The company's operating segments include Crude Oil Logistics, Water Solutions, and Liquids Logistics. It operates crude oil Logistics, owns pipeline injection stations, and offers services for the treatment and disposal of wastewater generated from crude oil and natural gas production, as well as for the disposal of solids, such as tank bottoms and drilling fluids. The firm also supplies natural gas liquids to retailers, wholesalers, refiners, and petrochemical plants and sells propane and distillates.
41GF Score
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