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3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Epsilon Energy's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was -15.46%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Epsilon Energy's 3-Year ROIIC % or its related term are showing as below:
EPSN's 3-Year ROIIC % is ranked worse than 67.96% of 930
companies
in the Oil & Gas industry
Industry Median: -0.085
vs EPSN: -15.46
Epsilon Energy (NAS:EPSN) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Epsilon Energy 3-Year ROIIC % Related Terms
Epsilon Energy 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Epsilon Energy's 3-Year ROIIC % 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, Epsilon Energy's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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.
Epsilon Energy 3-Year ROIIC % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Epsilon Energy's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Epsilon Energy's 3-Year ROIIC % falls into.
Epsilon Energy's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 15.624 (Dec. 2025) - 34.7881632 (Dec. 2022) )
/
( 196.982 (Dec. 2025) - 73.039 (Dec. 2022) )
=
-19.1641632
/
123.943
=
-15.46%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Epsilon Energy (EPSN) has a 3-Year ROIIC % of -15.46 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Epsilon Energy and its competitors. According to the industry distribution chart, Epsilon Energy ranks #632 out of 930 companies in the Oil & Gas industry, placing it in the top 68%.
Is Epsilon Energy's 3-Year ROIIC % too high?
Epsilon Energy's current 3-Year ROIIC % is -15.46. Based on the distribution chart, Epsilon Energy ranks #632 out of 930 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Epsilon Energy has a GF Score™ of 68/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Epsilon Energy's 3-Year ROIIC % compare to AMPY and PED?
According to the Oil & Gas industry distribution chart, Epsilon Energy ranks #632 out of 930 companies for 3-Year ROIIC %. This places Epsilon Energy in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for an Oil & Gas company?
A good 3-Year ROIIC % depends on the Oil & Gas industry context. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Epsilon Energy and its competitors. Epsilon Energy's current 3-Year ROIIC % is -15.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Epsilon Energy stock overvalued right now?
Based on GuruFocus' analysis, Epsilon Energy (EPSN) is currently considered Possible Value Trap. The stock's GF Value™ is $8.09, compared to a current price of $5.68 — trading 29.8% below its estimated fair value. The current 3-Year ROIIC % is -15.46. Epsilon Energy's overall GF Score™ is 68/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Epsilon Energy (EPSN), the current 3-Year ROIIC % is -15.46 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.
Is Epsilon Energy (EPSN) Overvalued in 2026?
Based on GuruFocus' analysis, Epsilon Energy stock appears to be undervalued.
The current stock price of $5.68 is trading 29.8% below its estimated GF Value™ of $8.09.
GuruFocus considers Epsilon Energy to be Possible Value Trap.
Key valuation signals for EPSN:
3-Year ROIIC %: -15.46
GF Value™: $8.09 vs. price of $5.68 (29.8% below fair value)
No single metric tells the full story. See the EPSN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Epsilon Energy Ltd is a North American on-shore focused independent natural gas and oil company engaged in the acquisition, development, gathering and production of natural gas and oil reserves. Its properties include Appalachian Basin-Pennsylvania, Permian Basin-Texas and New Mexico, Anadarko Basin-Oklahoma, Powder River Basin-Wyoming, Western Canadian Sedimentary Basin-Alberta, Canada. Its segments include The Upstream segment activities include acquisition, development and production of natural gas and oil reserves on properties within the United States and Canada; and The Gas Gathering segment partners with two other companies to operate a natural gas gathering system. The Upstream segment derives the majority of the revenue.
68GF Score
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