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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.
Houston American Energy's 3-Year ROIIC % for the quarter that ended in Dec. 2024 was 35.12%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Houston American Energy's 3-Year ROIIC % or its related term are showing as below:
FRA:8H6's 3-Year ROIIC % is not ranked
in the Oil & Gas industry.
Industry Median: -0.33
vs FRA:8H6: 35.12
Houston American Energy (FRA:8H6) 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.
Houston American Energy 3-Year ROIIC % Related Terms
Houston American Energy 3-Year ROIIC % Historical Data
* 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.
FRA:8H6 vs PVL, EP, LRDC: 3-Year ROIIC % Comparison
For the Oil & Gas E&P subindustry, Houston American 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.
Houston American Energy 3-Year ROIIC % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Houston American Energy's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Houston American Energy's 3-Year ROIIC % falls into.
Houston American Energy 3-Year ROIIC % Calculation
Houston American Energy's 3-Year ROIIC % for the quarter that ended in Dec. 2024 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( -2.456 (Dec. 2024) - -0.915 (Dec. 2021) )
/
( 1.313 (Dec. 2024) - 5.093 (Dec. 2021) )
=
-1.541
/
-3.78
=
40.77%***
* 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.
Houston American Energy (FRA:8H6) has a 3-Year ROIIC % of 35.12 as of Dec. 2024. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Houston American Energy and its competitors. This is 1533% above median its historical median of 2.15.
Is Houston American Energy's 3-Year ROIIC % too high?
Houston American Energy's current 3-Year ROIIC % of 35.12 is 1533% above median its 10-year median of 2.15. Overall, Houston American Energy has a GF Score™ of 36/100, reflecting its overall financial health beyond just this single metric.
How does Houston American Energy's 3-Year ROIIC % compare to PVL and EP?
Houston American Energy's 3-Year ROIIC % of 35.12 can be compared against companies in the Oil & Gas 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 Houston American Energy and its competitors. Houston American Energy's current 3-Year ROIIC % is 35.12, which is 1533% above median its own 10-year median of 2.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Houston American Energy stock overvalued right now?
Houston American Energy (FRA:8H6) has a current 3-Year ROIIC % of 35.12. The stock's GF Value™ is €7.93, compared to a current price of €1.70 — trading 78.6% below its estimated fair value. The current 3-Year ROIIC % is 35.12, which is 1533% above median its 10-year median of 2.15. Houston American Energy's overall GF Score™ is 36/100 with 5 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 Houston American Energy (FRA:8H6), the current 3-Year ROIIC % is 35.12 as of Dec. 2024. 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 Houston American Energy (FRA:8H6) Overvalued in 2026?
Based on GuruFocus' analysis, Houston American Energy stock appears to be undervalued.
The current stock price of €1.70 is trading 78.6% below its estimated GF Value™ of €7.93.
Key valuation signals for FRA:8H6:
3-Year ROIIC %: 35.12 (1533% above median its 10-year median of 2.15)
GF Value™: €7.93 vs. price of €1.70 (78.6% below fair value)
No single metric tells the full story. See the FRA:8H6 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Houston American Energy Corp is an independent oil and gas company focused on the development, exploration, exploitation, acquisition, and production of natural gas and crude oil properties. Its properties, and operations, are in the U.S. Permian Basin, the U.S. Gulf Coast region, particularly Louisiana, and the South American country of Colombia. Geographically, the company currently has operations in two geographical areas, the United States, from where it derives maximum revenue, and Colombia.
36GF Score
Get the complete analysis for FRA:8H6
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