FMP

FMP

Accelerant Holdings (NASDAQ:ARX) Financial Analysis and Peer Comparison

  • Accelerant Holdings has a Return on Invested Capital (ROIC) of 0.85%, significantly lower than its Weighted Average Cost of Capital (WACC) of 5.05%, indicating inefficient capital utilization.
  • CompX International Inc. stands out with a ROIC of 12.03% and a WACC of 8.74%, suggesting efficient capital use and potential for growth.
  • CIMG Inc. presents the most concerning figures with a ROIC of -78.08% and a WACC of 6.34%, indicating significant inefficiencies in capital utilization.

Accelerant Holdings (NASDAQ:ARX) is a company that operates in the financial sector, focusing on providing insurance and reinsurance solutions. The company aims to deliver innovative risk management services to its clients. In the competitive landscape, Accelerant faces peers like SuperX AI Technology Limited, CompX International Inc., Albany International Corp., Mistras Group, Inc., and CIMG Inc., each with varying financial metrics.

Accelerant Holdings has a Return on Invested Capital (ROIC) of 0.85%, which is significantly lower than its Weighted Average Cost of Capital (WACC) of 5.05%. This results in a ROIC to WACC ratio of 0.17, indicating that the company is not generating returns that exceed its cost of capital. This could be a concern for investors as it suggests inefficient capital utilization.

In comparison, SuperX AI Technology Limited has a negative ROIC of -14.33% against a WACC of 4.66%, resulting in a ROIC to WACC ratio of -3.08. This indicates even poorer capital utilization than Accelerant. On the other hand, CompX International Inc. stands out with a ROIC of 12.03% and a WACC of 8.74%, leading to a ROIC to WACC ratio of 1.38, suggesting efficient capital use and potential for growth.

Albany International Corp. and Mistras Group, Inc. also show varying levels of capital efficiency. Albany has a negative ROIC of -2.66% with a WACC of 8.80%, resulting in a ROIC to WACC ratio of -0.30. Mistras Group, Inc. has a ROIC of 5.99% and a WACC of 7.82%, leading to a ROIC to WACC ratio of 0.77, indicating moderate capital efficiency.

CIMG Inc. presents the most concerning figures with a ROIC of -78.08% and a WACC of 6.34%, resulting in a ROIC to WACC ratio of -12.32. This suggests significant inefficiencies in capital utilization. Overall, while CompX International Inc. demonstrates strong capital efficiency, Accelerant Holdings and several of its peers face challenges in generating returns above their cost of capital.