Understanding Tenable Holdings, Inc.'s Financial Performance in the Cybersecurity Sector

Core Insights - Tenable Holdings, Inc. specializes in vulnerability management within the cybersecurity sector, competing with companies like Rapid7, Varonis Systems, Qualys, Elastic N.V., and Smartsheet [1] Financial Performance - Tenable's Return on Invested Capital (ROIC) is -0.97%, which is below its Weighted Average Cost of Capital (WACC) of 7.12%, indicating inefficient capital utilization [2][5] - In contrast, Rapid7 has a positive ROIC of 0.79% against a WACC of 5.36%, demonstrating better capital efficiency [2] - Varonis Systems shows a strong performance with a ROIC of 9% and a WACC of 6.18%, resulting in a ROIC to WACC ratio of 1.45, indicating effective capital use [3] - Qualys leads the sector with a ROIC of 28% and a WACC of 6.32%, achieving a ROIC to WACC ratio of 4.42, highlighting its superior capital efficiency [3][5] - Both Elastic N.V. and Smartsheet have negative ROICs, with Elastic at -64.50% and Smartsheet at -2.84%, suggesting challenges in generating returns above their cost of capital [4][5]