FMP

FMP

Catalyst Bancorp, Inc. (NASDAQ:CLST) Capital Utilization Analysis

-

twitterlinkedinfacebook
blog post cover photo

Image credit: Google Images

  • Catalyst Bancorp's (NASDAQ:CLST) ROIC of 2.84% is lower than its WACC of 4.62%, indicating inefficient capital utilization.
  • TESSCO Technologies (TESS) and World Access, Inc. (WAXS) also show signs of capital utilization inefficiencies with negative and low ROIC values, respectively.
  • Integrated Ventures, Inc. (INTV) and Altigen Communications, Inc. (ATGN) demonstrate highly efficient capital utilization, with ROIC significantly exceeding their WACC.

Catalyst Bancorp, Inc. (NASDAQ:CLST) is a financial institution that provides banking services. It operates in a competitive industry where efficient capital utilization is crucial for maintaining investor confidence and ensuring long-term growth. The company's performance is often compared with its peers to gauge its efficiency in generating returns on invested capital.

Catalyst Bancorp's ROIC is 2.84%, which is lower than its WACC of 4.62%. This indicates that the company is not generating returns above its cost of capital. For investors, this could be a concern as it suggests that the company is not using its capital efficiently to create value.

In comparison, TESSCO Technologies (TESS) has a negative ROIC of -1.39%, highlighting inefficiencies in generating returns. Without available WACC data, it's challenging to fully assess its capital efficiency, but the negative ROIC is a red flag for potential investors.

World Access, Inc. (WAXS) also struggles with a ROIC of 0.57% against a WACC of 2.38%. This indicates that it, too, is not covering its cost of capital, similar to Catalyst Bancorp. This could suggest potential challenges in capital utilization and value creation.

On the other hand, Integrated Ventures, Inc. (INTV) showcases a remarkable ROIC of 966.43% compared to a WACC of 16.99%. This suggests a highly efficient use of capital, making it an attractive option for investors. Altigen Communications, Inc. (ATGN) also demonstrates efficient capital utilization with a ROIC of 16.60% exceeding its WACC of 9.29%, indicating value creation.

Other Blogs

Nov 22, 2024 5:08 AM - Parth Sanghvi

Fundamental Analysis: Principles, Types, and How to Use It

Fundamental analysis is one of the most essential tools for investors and analysts alike, helping them assess the intrinsic value of a stock, company, or even an entire market. It focuses on the financial health and economic position of a company, often using key data such as earnings, expenses, ass...

blog post title

Dec 17, 2024 8:58 AM - Sanzhi Kobzhan

Examining Tesla’s Financial Health Using FinancialModelingPrep’s Ratios API

Tesla, one of the world’s most talked-about electric vehicle manufacturers, attracts a lot of attention from investors and market watchers. By examining a snapshot of Tesla’s financial ratios—such as those provided by FinancialModelingPrep’s Ratios API—we can get a clearer picture of the company’s f...

blog post title

Dec 22, 2024 7:59 AM - Sanzhi Kobzhan

Two great Software Platform Stocks Similar to Palantir (PLTR)

When it comes to cutting-edge software and data analytics, Palantir Technologies (NYSE: PLTR) is often front and center. But for many investors, it’s important to consider alternative or complementary stocks in the same sector that may offer robust growth potential. As PLTR looks expensive (overvalu...

blog post title