Weighted Average Cost of Capital (WACC)
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Gartner, Inc. (NYSE: IT) Capital Efficiency Analysis
Financial Modeling Prep· 2025-11-05 02:00
Core Insights - Gartner, Inc. is a leading research and advisory company providing insights and tools for various sectors including IT, finance, HR, and customer service [1] - The company demonstrates effective capital management with a Return on Invested Capital (ROIC) of 24.87% and a Weighted Average Cost of Capital (WACC) of 8.07% [2][6] Capital Efficiency Comparison - Gartner's ROIC to WACC ratio is 3.08, indicating strong capital efficiency compared to its cost of capital [2] - CDW Corporation has a ROIC of 19.21% and a WACC of 7.30%, resulting in a ROIC to WACC ratio of 2.63, reflecting efficient capital use [3] - Mettler-Toledo International Inc. leads with a ROIC of 37.77% and a WACC of 9.74%, achieving the highest ROIC to WACC ratio of 3.88 among peers, indicating exceptional capital utilization [4] - Jack Henry & Associates has a ROIC to WACC ratio of 2.34, suggesting efficient capital use, while ANSYS, Inc. has a lower ratio of 0.88, indicating its returns do not cover its cost of capital [5][6]
Scorpio Tankers Inc. (NYSE:STNG) Capital Efficiency Analysis
Financial Modeling Prep· 2025-11-04 17:00
Core Insights - Scorpio Tankers Inc. is a significant player in the shipping industry, focusing on the transportation of refined petroleum products with a modern fleet of tankers [1] - The company has a Return on Invested Capital (ROIC) of 8.01%, which exceeds its Weighted Average Cost of Capital (WACC) of 6.19%, indicating positive returns for investors [2] - The competitive landscape includes companies like Teekay Tankers Ltd., Euronav N.V., DHT Holdings, Inc., International Seaways, Inc., and Ardmore Shipping Corporation [1] Financial Performance - Scorpio Tankers' ROIC to WACC ratio is 1.29, highlighting efficient capital utilization [2] - Teekay Tankers Ltd. leads the peer group with a ROIC of 13.72% and a WACC of 4.87%, resulting in a ROIC to WACC ratio of 2.82, indicating high efficiency [3] - Euronav N.V. and DHT Holdings, Inc. show strong capital efficiency with ROIC to WACC ratios of 2.58 and 2.80, respectively, positioning them as strong competitors [4] - International Seaways, Inc. and Ardmore Shipping Corporation have ROIC to WACC ratios of 2.07 and 1.88, respectively, indicating efficient capital utilization despite being lower than the top competitors [5]
Zebra Technologies Corporation's Financial Efficiency Analysis
Financial Modeling Prep· 2025-11-04 17:00
Core Insights - Zebra Technologies Corporation is a global leader in enterprise asset intelligence solutions, offering products like barcode scanners, mobile computers, and RFID solutions to enhance operational efficiency [1] - Zebra competes with companies such as Honeywell and Datalogic in the automatic identification and data capture (AIDC) industry [1] Financial Performance - Zebra's Return on Invested Capital (ROIC) is 9.20%, while its Weighted Average Cost of Capital (WACC) is 10.94%, resulting in a ROIC to WACC ratio of 0.84, indicating that the company is not generating returns above its cost of capital [2][6] - Paycom Software, Inc. has a ROIC of 18.31% and a WACC of 7.59%, leading to a ROIC to WACC ratio of 2.41, showcasing effective capital utilization [3][6] - IDEXX Laboratories, Inc. leads the peer group with a ROIC of 46.11% and a WACC of 11.04%, achieving a ROIC to WACC ratio of 4.18, highlighting its exceptional ability to generate returns above its cost of capital [4][6] - HubSpot, Inc. has a ROIC of 4.27% and a WACC of 10.96%, resulting in a ROIC to WACC ratio of 0.39, indicating that it, like Zebra, is not covering its cost of capital [5][6]
MiMedx Group, Inc. (NASDAQ:MDXG) Outperforms Peers in Capital Efficiency
Financial Modeling Prep· 2025-11-04 02:00
Core Insights - MiMedx Group, Inc. is a leader in the advanced wound care and therapeutic biologics sector, focusing on products derived from human placental tissue for medical applications [1] - The company demonstrates impressive financial performance, particularly in its Return on Invested Capital (ROIC) compared to its Weighted Average Cost of Capital (WACC) [1] Financial Performance - MiMedx's ROIC stands at 19.52%, significantly higher than its WACC of 11.70%, resulting in a ROIC to WACC ratio of 1.67, indicating efficient capital utilization [2] - Compared to peers, MiMedx's financial metrics are superior, with AxoGen, Inc. showing a ROIC of 2.07% and a WACC of 8.82%, leading to a ROIC to WACC ratio of 0.23 [3] - MacroGenics, Inc. has a negative ROIC of -37.98% and a WACC of 9.17%, resulting in a ROIC to WACC ratio of -4.14, indicating inefficiency in capital utilization [3] - Enanta Pharmaceuticals, Inc. has a ROIC of -32.77% and a WACC of 6.26%, leading to a ROIC to WACC ratio of -5.23, while Protagonist Therapeutics, Inc. has a ROIC of 3.39% and a WACC of 14.08%, with a ROIC to WACC ratio of 0.24 [4] - Omeros Corporation shows the most concerning figures with a ROIC of -100.12% and a WACC of 11.87%, resulting in a ROIC to WACC ratio of -8.44, highlighting significant inefficiency [5] - MiMedx's strong ROIC to WACC ratio of 1.67 underscores its effective use of invested capital, making it an attractive option for investors [5]
Understanding the Efficiency of Perimeter Solutions and Peers in Generating Returns
Financial Modeling Prep· 2025-11-04 02:00
Core Insights - Perimeter Solutions, S.A. (NYSE:PRM) specializes in fire safety and oil additives, operating in a competitive landscape with peers like Montrose Environmental Group, Inc. (MEG) and The E.W. Scripps Company (SSP) [1] - The analysis of Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC) is crucial for understanding the efficiency of these companies in generating returns [1] Financial Performance - Perimeter Solutions has a ROIC of 3.78% and a WACC of 11.30%, resulting in a ROIC to WACC ratio of 0.33, indicating inefficiency in generating returns [2][5] - Montrose Environmental Group has a negative ROIC of -2.82% and a WACC of 10.47%, leading to a ROIC to WACC ratio of -0.27, which is less efficient than Perimeter Solutions [2] - The E.W. Scripps Company stands out with a ROIC of 5.78% and a WACC of 6.50%, resulting in a ROIC to WACC ratio of 0.89, indicating the highest efficiency among peers [3][5] - Scholastic Corporation has a ROIC of 1.74% and a WACC of 7.77%, with a ROIC to WACC ratio of 0.22, which is lower than that of Perimeter Solutions [3] - Lee Enterprises, Incorporated, and Unifi, Inc. both exhibit negative ROICs of -2.95% and -11.80%, respectively, with WACCs of 4.50% and 6.78%, resulting in ROIC to WACC ratios of -0.66 and -1.74, indicating significant inefficiencies [4][5]
WD-40 Company's Exceptional Capital Efficiency Outshines Competitors
Financial Modeling Prep· 2025-11-04 02:00
Core Insights - WD-40 Company is a global consumer products company known for its multi-use product, WD-40, serving both consumer and industrial markets in the maintenance, repair, and overhaul (MRO) segment [1] - The company exhibits a Return on Invested Capital (ROIC) of 24.83%, significantly surpassing its Weighted Average Cost of Capital (WACC) of 4.46%, resulting in a ROIC to WACC ratio of 5.57, indicating efficient capital utilization and robust profitability [2][6] - Competitors such as J&J Snack Foods Corp. and Quaker Chemical Corporation show lower ROIC to WACC ratios, highlighting challenges in generating returns above their cost of capital [3][6] Company Performance - WD-40's ROIC of 24.83% is notably higher than J&J Snack Foods Corp.'s ROIC of 6.68% and Quaker Chemical Corporation's negative ROIC of -2.87%, demonstrating superior capital efficiency [2][3] - Lancaster Colony Corporation and Balchem Corporation have ROIC to WACC ratios of 2.55 and 1.26, respectively, while Innospec Inc. has a ratio of 2.99, all of which are lower than WD-40's impressive 5.57 ratio [4] - Overall, WD-40's ability to generate high returns on invested capital compared to its cost of capital underscores its strong performance in the industry, positioning it as a leader among its peers [5]
Understanding Tenable Holdings, Inc.'s (NASDAQ:TENB) Capital Efficiency in the Cybersecurity Sector
Financial Modeling Prep· 2025-10-31 15:00
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 7.20%, indicating insufficient returns to cover capital costs [2] - Rapid7 has a positive ROIC of 1.29% against a WACC of 5.90%, resulting in a ROIC to WACC ratio of 0.22, suggesting better capital efficiency than Tenable, though still not optimal [3] - Varonis Systems demonstrates a stronger performance with a ROIC of 9% and a WACC of 6.26%, leading to a ROIC to WACC ratio of 1.43, indicating superior returns on invested capital [3] - Qualys exhibits the highest ROIC of 27.75% and a WACC of 6.58%, resulting in a ROIC to WACC ratio of 4.21, showcasing the best capital utilization among its peers [4]
Booz Allen Hamilton Holding Corporation (NYSE:BAH) Financial Performance Analysis
Financial Modeling Prep· 2025-10-31 15:00
Core Insights - Booz Allen Hamilton Holding Corporation (BAH) is a management and information technology consulting firm primarily serving the U.S. government in defense, intelligence, and civil markets [1] - BAH competes with firms such as Leidos Holdings, CACI International, and Science Applications International Corporation, which offer similar consulting and technology services [1] Financial Performance - BAH's Return on Invested Capital (ROIC) is 17.85%, significantly higher than its Weighted Average Cost of Capital (WACC) of 5.09% [2][5] - The ROIC to WACC ratio for BAH is 3.50, indicating that it generates returns well above its cost of capital [2][5] Peer Comparison - Leidos Holdings has a ROIC of 14.48% and a WACC of 6.37%, resulting in a ROIC to WACC ratio of 2.27, showing lower efficiency compared to BAH [3] - CACI International has a ROIC of 8.62% and a WACC of 6.11%, leading to a ROIC to WACC ratio of 1.41, indicating lower efficiency than BAH [3] - Science Applications International Corporation (SAIC) has a ROIC of 12.41% and a WACC of 5.24%, resulting in a ROIC to WACC ratio of 2.37, but still lower than BAH's ratio [4]
Verra Mobility Corporation's Financial Performance in the Smart Transportation Sector
Financial Modeling Prep· 2025-10-31 00:00
Core Insights - Verra Mobility Corporation specializes in smart transportation solutions, including toll and violations management, and title and registration services, operating in a competitive landscape with peers like International Money Express, Inc., Option Care Health, Inc., and R1 RCM Inc. [1] Financial Performance - Verra Mobility's Return on Invested Capital (ROIC) is 4.72%, which is lower than its Weighted Average Cost of Capital (WACC) of 6.47%, indicating inefficiencies in capital utilization [2][6] - International Money Express, Inc. (IMXI) has a strong ROIC of 19.70% against a WACC of 7.08%, demonstrating effective capital efficiency [3][6] - Option Care Health, Inc. (OPCH) shows a ROIC of 9.30% and a WACC of 6.94%, indicating it generates returns above its cost of capital [4][6] - R1 RCM Inc. (RCM) has a ROIC of 1.33% and a WACC of 7.69%, similar to Verra Mobility, indicating challenges in generating sufficient returns on invested capital [5][6]
Phreesia, Inc. (NYSE:PHR) Financial Analysis and Competitive Landscape
Financial Modeling Prep· 2025-10-30 15:00
Company Overview - Phreesia, Inc. is a healthcare technology company focused on patient intake and engagement, aiming to enhance the patient experience and healthcare outcomes [1] Financial Performance - Phreesia's Return on Invested Capital (ROIC) is 0.52%, which is significantly lower than its Weighted Average Cost of Capital (WACC) of 7.01%, indicating inefficiency in capital utilization [2][6] - The ROIC to WACC ratio for Phreesia is 0.074, further highlighting its challenges in generating returns above its cost of capital [2][6] Peer Comparison - Health Catalyst has a negative ROIC of -16.99% against a WACC of 6.57%, resulting in a ROIC to WACC ratio of -2.59, indicating worse performance than Phreesia [3] - Veracyte has a ROIC of 0.99% and a WACC of 13.50%, with a ROIC to WACC ratio of 0.073, suggesting it also struggles to generate sufficient returns, but is noted for having the highest growth potential among peers [4][6] - Accolade, Castle Biosciences, and Personalis all report negative ROICs of -31.79%, -4.28%, and -30.51% respectively, with their WACCs at 10.94%, 8.83%, and 11.72%, indicating significant challenges in generating returns above their cost of capital [5]