- Atara Biotherapeutics boasts a ROIC of 36.19% and a WACC of 6.88%, indicating efficient capital utilization.
- Comparative analysis shows Atara outperforming peers with a ROIC to WACC ratio of 5.26, highlighting its superior investment returns.
- CytomX Therapeutics also demonstrates strong capital efficiency, but Atara leads in generating returns relative to its cost of capital.
Atara Biotherapeutics, Inc. (NASDAQ:ATRA) is a biotechnology company focused on developing therapies for patients with serious diseases, particularly in the field of immunotherapy. The company aims to harness the power of the immune system to treat cancer and other diseases. In the competitive landscape, Atara faces peers like G1 Therapeutics, Allogene Therapeutics, MacroGenics, AnaptysBio, and CytomX Therapeutics.
In evaluating Atara’s financial performance, the Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC) are key metrics. Atara boasts a ROIC of 36.19% and a WACC of 6.88%, resulting in a ROIC to WACC ratio of 5.26. This indicates that Atara is generating returns well above its cost of capital, a positive indicator for investors.
Comparatively, G1 Therapeutics has a negative ROIC of -17.42% and a WACC of 12.24%, leading to a ROIC to WACC ratio of -1.42. This suggests that G1 is not effectively utilizing its capital. Similarly, Allogene Therapeutics and MacroGenics show negative ROIC to WACC ratios of -11.61 and -6.00, respectively, indicating inefficiencies in capital utilization.
AnaptysBio also struggles with a negative ROIC of -28.56% and a WACC of 13.21%, resulting in a ROIC to WACC ratio of -2.16. In contrast, CytomX Therapeutics stands out with a high ROIC of 66.72% and a ROIC to WACC ratio of 5.04, showing strong capital efficiency. However, Atara’s superior ROIC to WACC ratio of 5.26 positions it as the leader in generating returns relative to its cost of capital.
