- Catalyst Bancorp’s (NASDAQ:CLST) ROIC of 2.84% is lower than its WACC of 4.62%, indicating inefficient capital utilization.
- TESSCO Technologies (TESS) and World Access, Inc. (WAXS) also show signs of capital utilization inefficiencies with negative and low ROIC values, respectively.
- Integrated Ventures, Inc. (INTV) and Altigen Communications, Inc. (ATGN) demonstrate highly efficient capital utilization, with ROIC significantly exceeding their WACC.
Catalyst Bancorp, Inc. (NASDAQ:CLST) is a financial institution that provides banking services. It operates in a competitive industry where efficient capital utilization is crucial for maintaining investor confidence and ensuring long-term growth. The company’s performance is often compared with its peers to gauge its efficiency in generating returns on invested capital.
Catalyst Bancorp’s ROIC is 2.84%, which is lower than its WACC of 4.62%. This indicates that the company is not generating returns above its cost of capital. For investors, this could be a concern as it suggests that the company is not using its capital efficiently to create value.
In comparison, TESSCO Technologies (TESS) has a negative ROIC of -1.39%, highlighting inefficiencies in generating returns. Without available WACC data, it’s challenging to fully assess its capital efficiency, but the negative ROIC is a red flag for potential investors.
World Access, Inc. (WAXS) also struggles with a ROIC of 0.57% against a WACC of 2.38%. This indicates that it, too, is not covering its cost of capital, similar to Catalyst Bancorp. This could suggest potential challenges in capital utilization and value creation.
On the other hand, Integrated Ventures, Inc. (INTV) showcases a remarkable ROIC of 966.43% compared to a WACC of 16.99%. This suggests a highly efficient use of capital, making it an attractive option for investors. Altigen Communications, Inc. (ATGN) also demonstrates efficient capital utilization with a ROIC of 16.60% exceeding its WACC of 9.29%, indicating value creation.
