Sportradar Group AG (NASDAQ:SRAD) has a ROIC of 4.11% and a WACC of 14.10%, indicating it is not generating returns above its cost of capital.
Genius Sports Limited (GENI) and Thoughtworks Holding, Inc. (TWKS) both have negative ROIC, highlighting significant underperformance in generating sufficient returns to cover their cost of capital.
Clearwater Analytics Holdings, Inc. (CWAN) demonstrates better financial efficiency with a ROIC of 3.49% and a WACC of 7.06%, though it still does not fully cover its cost of capital.
Sportradar Group AG (NASDAQ:SRAD) is a leading global provider of sports data and content. The company offers a range of services, including data analytics, sports entertainment, and betting services. It competes with other companies in the sports data and technology sector, such as Genius Sports Limited and Thoughtworks Holding, Inc.
In evaluating Sportradar’s financial efficiency, its Return on Invested Capital (ROIC) is 4.11%, while its Weighted Average Cost of Capital (WACC) is 14.10%. This results in a ROIC to WACC ratio of 0.29, indicating that Sportradar is not currently generating returns that exceed its cost of capital. This suggests that the company may need to improve its operational efficiency or cost management to enhance profitability.
Comparatively, Genius Sports Limited (GENI) has a negative ROIC of -16.05% against a WACC of 13.55%, resulting in a ROIC to WACC ratio of -1.18. This indicates that Genius Sports is underperforming significantly, as it is not generating sufficient returns to cover its cost of capital. This inefficiency highlights the challenges faced by companies in the sports data industry.
Thoughtworks Holding, Inc. (TWKS) also shows a negative ROIC of -6.47% compared to its WACC of 9.10%, with a ROIC to WACC ratio of -0.71. Like Genius Sports, Thoughtworks is not covering its cost of capital, suggesting inefficiencies in its operations or investment strategies. This is a common issue among companies in the technology and data sectors.
Clearwater Analytics Holdings, Inc. (CWAN) presents a more favorable picture with a ROIC of 3.49% and a WACC of 7.06%, resulting in a ROIC to WACC ratio of 0.49. Although its ROIC is still below its WACC, Clearwater Analytics demonstrates better efficiency compared to Sportradar. This indicates that while Clearwater is not fully covering its cost of capital, it is closer to achieving this goal than some of its peers.
