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There's Been No Shortage Of Growth Recently For Gulfport Energy's (NYSE:GPOR) Returns On Capital

Simply Wall St · 5d ago

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key financial metrics. Typically, we'll want to notice a trend of growing return on capital employed (ROCE) and alongside that, an expanding base of capital employed. Put simply, these types of businesses are compounding machines, meaning they are continually reinvesting their earnings at ever-higher rates of return. So when we looked at Gulfport Energy (NYSE:GPOR) and its trend of ROCE, we really liked what we saw.

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Understanding Return On Capital Employed (ROCE)

If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. Analysts use this formula to calculate it for Gulfport Energy:

Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)

0.17 = US$450m ÷ (US$2.9b - US$346m) (Based on the trailing twelve months to September 2025).

Therefore, Gulfport Energy has an ROCE of 17%. On its own, that's a standard return, however it's much better than the 8.7% generated by the Oil and Gas industry.

See our latest analysis for Gulfport Energy

roce
NYSE:GPOR Return on Capital Employed January 5th 2026

Above you can see how the current ROCE for Gulfport Energy compares to its prior returns on capital, but there's only so much you can tell from the past. If you're interested, you can view the analysts predictions in our free analyst report for Gulfport Energy .

What The Trend Of ROCE Can Tell Us

Investors would be pleased with what's happening at Gulfport Energy. Over the last five years, returns on capital employed have risen substantially to 17%. The amount of capital employed has increased too, by 26%. This can indicate that there's plenty of opportunities to invest capital internally and at ever higher rates, a combination that's common among multi-baggers.

The Bottom Line

A company that is growing its returns on capital and can consistently reinvest in itself is a highly sought after trait, and that's what Gulfport Energy has. And with the stock having performed exceptionally well over the last three years, these patterns are being accounted for by investors. So given the stock has proven it has promising trends, it's worth researching the company further to see if these trends are likely to persist.

On a separate note, we've found 1 warning sign for Gulfport Energy you'll probably want to know about.

While Gulfport Energy isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets.