Ubiquiti Inc. (NYSE:UI) demonstrates a remarkable Return on Invested Capital (ROIC) of 63.47%, significantly outperforming its competitors.
The company’s ROIC to WACC ratio of 6.86 highlights its superior efficiency in utilizing capital to generate returns.
Ubiquiti’s performance is compared with peers like Fair Isaac Corporation, Monolithic Power Systems, and others, showcasing its competitive edge in capital utilization.
Ubiquiti Inc. (NYSE:UI) is a company that specializes in providing networking technology and solutions. It is known for its innovative products in wireless data communication and has a strong presence in the global market. Ubiquiti competes with companies like Fair Isaac Corporation, Paylocity Holding Corporation, Monolithic Power Systems, EPAM Systems, and Insulet Corporation.
Ubiquiti Inc. showcases a remarkable Return on Invested Capital (ROIC) of 63.47%, which is significantly higher than its Weighted Average Cost of Capital (WACC) of 9.25%. This results in a ROIC to WACC ratio of 6.86, indicating that Ubiquiti is highly efficient in utilizing its capital to generate returns. This efficiency is a key factor in its competitive edge.
In comparison, Fair Isaac Corporation (FICO) has a ROIC of 45.08% and a WACC of 10.36%, leading to a ROIC to WACC ratio of 4.35. While FICO is also efficient, Ubiquiti’s ratio is notably higher, suggesting superior capital utilization. Monolithic Power Systems, Inc. (MPWR) follows closely with a ROIC to WACC ratio of 5.68, indicating strong capital efficiency as well.
Other peers like Paylocity Holding Corporation (PCTY) and EPAM Systems, Inc. (EPAM) have lower ROIC to WACC ratios of 0.49 and 0.91, respectively. This suggests that these companies are not utilizing their capital as effectively as Ubiquiti. Insulet Corporation (PODD) has a ratio of 1.59, which is better than some peers but still falls short of Ubiquiti’s performance.
Overall, Ubiquiti Inc. stands out among its peers with its exceptional ability to generate returns well above its cost of capital. This efficiency in capital utilization is a testament to its strong business model and strategic investments, setting it apart in the competitive landscape.
