Cellebrite DI Ltd. (NASDAQ:CLBT) showcases a strong Return on Invested Capital (ROIC) of 19.37% compared to its competitors, indicating efficient capital utilization.
The company’s ROIC to WACC ratio of 1.74 signifies its ability to generate returns well above its cost of capital, highlighting its value creation for shareholders.
Competitors like Kaltura, Inc. (KLTR), Similarweb Ltd. (SMWB), Arbe Robotics Ltd. (ARBE), and Taboola.com Ltd. (TBLA) display negative ROIC to WACC ratios, suggesting inefficiencies in capital utilization.
Cellebrite DI Ltd. (NASDAQ:CLBT) is a leading provider of digital intelligence solutions, primarily serving law enforcement agencies and enterprises. The company specializes in extracting and analyzing digital data from various devices, aiding in investigations and security operations. In a competitive landscape, Cellebrite’s main competitors include companies like Kaltura, Inc., Similarweb Ltd., Arbe Robotics Ltd., and Taboola.com Ltd.
Cellebrite’s Return on Invested Capital (ROIC) is 19.37%, which is significantly higher than its Weighted Average Cost of Capital (WACC) of 11.12%. This results in a ROIC to WACC ratio of 1.74, indicating that Cellebrite is effectively utilizing its capital to generate returns well above its cost. This is a strong indicator of the company’s ability to create value for its shareholders.
In contrast, Kaltura, Inc. (KLTR) has a ROIC of -61.73% and a WACC of 7.50%, resulting in a ROIC to WACC ratio of -8.23. This negative ratio suggests that Kaltura is not generating sufficient returns to cover its cost of capital, indicating inefficiencies in capital utilization. Similarly, Similarweb Ltd. (SMWB) has a ROIC of -29.60% and a WACC of 7.77%, leading to a ROIC to WACC ratio of -3.81, further highlighting challenges in capital efficiency.
Arbe Robotics Ltd. (ARBE) presents an even more concerning picture with a ROIC of -102.24% against a WACC of 5.00%, resulting in a ROIC to WACC ratio of -20.45. This substantial negative ratio indicates significant inefficiencies in capital utilization, as the company is far from generating returns that meet its cost of capital. Taboola.com Ltd. (TBLA), while having the highest ROIC to WACC ratio among its peers at -0.08, still falls short of breaking even, with a ROIC of -0.74% and a WACC of 9.24%.
Overall, Cellebrite DI Ltd. stands out among its peers with its positive ROIC to WACC ratio, showcasing its superior ability to generate returns above its cost of capital. This positions Cellebrite as a more efficient and potentially more attractive investment compared to its peers, who are currently struggling with negative ROIC to WACC ratios.
