FMP
May 25, 2025 8:00 PM - Andrew Wynn(Last modified: May 26, 2025 2:15 PM)
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Catalyst Bancorp, Inc. (NASDAQ:CLST) is a financial institution that provides a range of banking services. The company operates in a competitive landscape with peers like TESSCO Technologies, World Access, Integrated Ventures, and Altigen Communications. These companies vary in their financial performance, particularly in terms of Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC).
Catalyst Bancorp's ROIC is 2.84%, which is lower than its WACC of 4.73%. This indicates that the company is not generating returns that exceed its cost of capital, which can be a concern for investors looking for growth potential. The ROIC to WACC ratio of 0.60 further highlights this inefficiency.
In comparison, TESSCO Technologies has a negative ROIC of -1.40%, suggesting significant inefficiencies in generating returns on its invested capital. The absence of WACC data makes it difficult to fully assess its cost of capital, but the negative ROIC is a red flag for potential investors.
World Access, Inc. also struggles with a ROIC of 0.57%, which is below its WACC of 2.45%. This results in a ROIC to WACC ratio of 0.23, indicating that the company is not covering its cost of capital, similar to Catalyst Bancorp.
On the other hand, Integrated Ventures, Inc. shows remarkable efficiency with a ROIC of 966.43% against a WACC of 17.07%. This results in a ROIC to WACC ratio of 56.63, making it the most efficient in generating returns relative to its cost of capital among the peers analyzed. Altigen Communications also performs well with a ROIC of 16.60% and a WACC of 9.41%, resulting in a ROIC to WACC ratio of 1.76, indicating it is generating returns above its cost of capital.
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