Bridgeline Digital, Inc. (NASDAQ:BLIN) is a company that provides digital engagement solutions, helping businesses optimize their online presence and customer interactions. Despite its innovative offerings, BLIN faces challenges in capital efficiency, as indicated by its financial metrics. The company’s ROIC is -21.51%, which is significantly lower than its WACC of 7.47%. This negative ROIC suggests that BLIN is not generating enough returns to cover its cost of capital.
In comparison to its peers, BLIN’s ROIC to WACC ratio of -2.88 is more favorable than some but still indicates inefficiency. Marin Software Incorporated (MRIN) has a ROIC of -71.72% and a WACC of 5.59%, resulting in a ROIC to WACC ratio of -12.84. This shows that MRIN is struggling even more than BLIN in terms of capital efficiency.
Verb Technology Company, Inc. (VERB) also faces challenges with a ROIC of -56.03% and a WACC of 7.79%, leading to a ROIC to WACC ratio of -7.19. This indicates that VERB, like BLIN, is not effectively using its capital to generate returns. NeuroMetrix, Inc. (NURO) has a ROIC of -61.36% and a WACC of 12.56%, resulting in a ROIC to WACC ratio of -4.89, further highlighting the difficulties faced by these companies.
Carver Bancorp, Inc. (CARV) stands out among the peers with a ROIC of -1.81% and a WACC of 42.08%, leading to a ROIC to WACC ratio of -0.04. Although still negative, CARV’s ratio is the least negative, suggesting it is closer to covering its cost of capital compared to the others. This positions CARV as having the highest potential for improvement in capital efficiency among the group.
