FMP

FMP

Coeptis Therapeutics, Inc. (NASDAQ:COEP) Struggles with Capital Utilization Compared to Peers

  • Coeptis Therapeutics, Inc. (NASDAQ:COEP) has a ROIC of -91.29% and a WACC of 5.55%, indicating poor capital utilization.
  • ZyVersa Therapeutics, Inc. (ZVSA) showcases strong capital efficiency with a ROIC of 220.45% and a WACC of 7.54%.
  • Other companies like Cardio Diagnostics Holdings, Inc. (CDIO) and SeaStar Medical Holding Corporation (ICU) also exhibit negative ROIC to WACC ratios, though less severe than Coeptis.

Coeptis Therapeutics, Inc. (NASDAQ:COEP) is a company involved in the development of innovative therapies for patients with unmet medical needs. The company operates in the competitive biotechnology sector, where it faces challenges in capital utilization and return generation. A key metric to assess its performance is the comparison of Return on Invested Capital (ROIC) against the Weighted Average Cost of Capital (WACC).

Coeptis Therapeutics has a ROIC of -91.29% and a WACC of 5.55%, resulting in a ROIC to WACC ratio of -16.45. This negative ratio indicates that Coeptis is not generating sufficient returns on its invested capital compared to its cost of capital. This suggests inefficiencies in capital utilization, which could impact its financial health and growth prospects.

In comparison, Cardio Diagnostics Holdings, Inc. (CDIO) has a ROIC of -60.70% and a WACC of 16.84%, leading to a ROIC to WACC ratio of -3.60. Although also negative, Cardio Diagnostics' ratio is less severe than Coeptis', indicating relatively better capital efficiency despite still being below the cost of capital.

ZyVersa Therapeutics, Inc. (ZVSA) stands out with a positive ROIC of 220.45% and a WACC of 7.54%, resulting in a ROIC to WACC ratio of 29.23. This indicates that ZyVersa is effectively generating returns well above its cost of capital, showcasing strong capital utilization and potential for growth, unlike Coeptis and its other peers.

SeaStar Medical Holding Corporation (ICU) and Dermata Therapeutics, Inc. (DRMA) also exhibit negative ROICs of -121.49% and -194.54%, respectively, with ROIC to WACC ratios of -7.04 and -31.71. These figures highlight the challenges faced by these companies in generating returns above their cost of capital, similar to Coeptis.