Bridgeline Digital, Inc. (NASDAQ:BLIN) Financial Performance Analysis

• Bridgeline Digital's ROIC is -21.51%, indicating it is not generating sufficient returns to cover its WACC of 7.83%.
• Despite a negative ROIC, BLIN's capital efficiency is relatively better than peers like Marin Software and Verb Technology.
• Carver Bancorp and NeuroMetrix also struggle with capital efficiency, but BLIN shows better management in utilizing its capital compared to most of its peers.

Bridgeline Digital, Inc. (NASDAQ:BLIN) is a company that provides digital engagement solutions. It offers a suite of products that help businesses optimize their online presence and improve customer engagement. The company operates in a competitive landscape with peers like Marin Software Incorporated, Verb Technology Company, Inc., Carver Bancorp, Inc., and NeuroMetrix, Inc.

In evaluating Bridgeline Digital's financial performance, the focus is on its Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC). BLIN's ROIC is -21.51%, which is significantly lower than its WACC of 7.83%. This negative ROIC indicates that the company is not generating enough returns to cover its cost of capital, resulting in a ROIC to WACC ratio of -2.75.

When compared to its peers, Bridgeline Digital's performance is relatively better than Marin Software and Verb Technology, which have ROIC to WACC ratios of -12.84 and -7.51, respectively. Despite their lower WACC, these companies are less efficient in using their capital to generate returns. This suggests that BLIN is managing its capital more effectively than these peers.

Carver Bancorp, Inc. stands out with a ROIC to WACC ratio of -0.05, the highest among the group, despite a negative ROIC of -1.81%. This indicates that CARV is closer to breaking even in terms of capital efficiency. However, its high WACC of 39.31% reflects a significant cost of capital, impacting its overall financial performance.

NeuroMetrix, Inc. also faces challenges with a ROIC of -61.36% and a WACC of 12.56%, resulting in a ROIC to WACC ratio of -4.89. This further highlights the difficulties these companies face in generating returns that exceed their cost of capital, with Bridgeline Digital showing relatively better capital efficiency compared to most of its peers.