5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
Energy Transfer LP's 5-Year ROIIC % for the quarter that ended in Dec. 2025 was 17.81%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Energy Transfer LP's 5-Year ROIIC % or its related term are showing as below:
ET's 5-Year ROIIC % is ranked better than 72.98% of 866
companies
in the Oil & Gas industry
Industry Median: 5.17
vs ET: 17.81
Energy Transfer LP (NYSE:ET) 5-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.
Energy Transfer LP 5-Year ROIIC % Related Terms
Energy Transfer LP 5-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Energy Transfer LP's 5-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 Midstream subindustry, Energy Transfer LP's 5-Year ROIIC %, along with its competitors' market caps and 5-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.
Energy Transfer LP 5-Year ROIIC % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Energy Transfer LP's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Energy Transfer LP's 5-Year ROIIC % falls into.
Energy Transfer LP's 5-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
5-Year ROIIC %
=
5-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
5-Year Incremental Invested Capital**
=
( 8773.7664 (Dec. 2025) - 2176.404 (Dec. 2020) )
/
( 127090 (Dec. 2025) - 90055 (Dec. 2020) )
=
6597.3624
/
37035
=
17.81%***
* 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 5-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.
Energy Transfer LP (ET) has a 5-Year ROIIC % of 17.81 as of Dec. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Energy Transfer LP and its competitors. According to the industry distribution chart, Energy Transfer LP ranks #234 out of 866 companies in the Oil & Gas industry, placing it in the top 27%.
Is Energy Transfer LP's 5-Year ROIIC % too high?
Energy Transfer LP's current 5-Year ROIIC % is 17.81. The Oil & Gas industry median 5-Year ROIIC % is 5.17. Energy Transfer LP's value of 17.81 is 244.5% above this industry median. Based on the distribution chart, Energy Transfer LP ranks #234 out of 866 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Energy Transfer LP has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Energy Transfer LP's 5-Year ROIIC % compare to TRGP and KMI?
According to the Oil & Gas industry distribution chart, Energy Transfer LP ranks #234 out of 866 companies for 5-Year ROIIC %. This puts Energy Transfer LP in the upper half of its industry. The industry median 5-Year ROIIC % is 5.17. Energy Transfer LP's value of 17.81 is 244.5% 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 5-Year ROIIC % for an Oil & Gas company?
The median 5-Year ROIIC % among Oil & Gas companies is 5.17, based on 866 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Energy Transfer LP's current 5-Year ROIIC % of 17.81 is 244.5% 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 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Energy Transfer LP and its competitors. For the Oil & Gas industry, the median 5-Year ROIIC % is 5.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Energy Transfer LP's current 5-Year ROIIC % is 17.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Energy Transfer LP stock overvalued right now?
Based on GuruFocus' analysis, Energy Transfer LP (ET) is currently considered Fairly Valued. The stock's GF Value™ is $19.21, compared to a current price of $19.86 — trading 3.4% above its estimated fair value. The current 5-Year ROIIC % is 17.81 and 244.5% above the Oil & Gas industry median of 5.17. Energy Transfer LP's overall GF Score™ is 83/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For Energy Transfer LP (ET), the current 5-Year ROIIC % is 17.81 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 Energy Transfer LP (ET) Overvalued in 2026?
Based on GuruFocus' analysis, Energy Transfer LP stock appears to be overvalued.
The current stock price of $19.86 is trading 3.4% above its estimated GF Value™ of $19.21.
GuruFocus considers Energy Transfer LP to be Fairly Valued.
Key valuation signals for ET:
5-Year ROIIC %: 17.81
GF Value™: $19.21 vs. price of $19.86 (3.4% above fair value)
Industry Position: 244.5% above the Oil & Gas median (#234 of 866)
No single metric tells the full story. See the ET stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Energy Transfer is a diversified midstream firm operating from wellhead to consuming demand. It handles natural gas, natural gas liquids, crude oil, and refined products. Commodities are moved through its network of field-level gathering and processing to refineries and demand centers. Operations are concentrated in Texas and the midcontinent United States. It also controls Sunoco and USA Compression through its general partner relationship.
83GF Score
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5-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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