PermRock Royalty Trust's ROCE Trends Raise Concerns

PermRock Royalty Trust's return on capital employed (ROCE) is 7.5%, slightly above the oil and gas industry average of 9.1%. However, the company is applying 20% less capital than five years ago, and returns on capital have stayed flat. This indicates a shrinking business and a lack of quality in the ROCE. Despite this, the stock has gifted shareholders a 241% return in the last five years.