FMP

FMP

Enerpac Tool Group Corp. (NYSE:EPAC) Capital Efficiency Analysis

  • Enerpac Tool Group Corp. (NYSE:EPAC) showcases a robust Return on Invested Capital (ROIC) of 15.07% against a Weighted Average Cost of Capital (WACC) of 9.24%, indicating strong value creation for shareholders.
  • BrightSphere Investment Group Inc. (BSIG) leads with an exceptional ROIC of 31.05% and a WACC of 9.46%, highlighting its superior capital utilization efficiency.
  • Competitors like Helios Technologies, Inc. (HLIO) and National Bank Holdings Corporation (NBHC) show lower efficiency in capital utilization, with ROIC to WACC ratios suggesting challenges in generating returns above their capital costs.

Enerpac Tool Group Corp. (NYSE:EPAC) is a global leader in high-pressure hydraulic tools, controlled force products, and solutions for precise positioning of heavy loads. The company operates in the industrial tools and services sector, providing products that are essential for various industries, including construction, manufacturing, and energy. Enerpac's main competitors include companies like Helios Technologies, SPX Technologies, and Thermon Group Holdings.

Enerpac Tool Group Corp. showcases a robust Return on Invested Capital (ROIC) of 15.07% against a Weighted Average Cost of Capital (WACC) of 9.24%. This results in a ROIC to WACC ratio of 1.63, indicating that Enerpac is generating returns well above its cost of capital. This ratio is a key indicator of the company's ability to create value for its shareholders.

In comparison, Helios Technologies, Inc. (HLIO) has a ROIC of 4.57% and a WACC of 9.19%, resulting in a ROIC to WACC ratio of 0.50. This suggests that Helios is not generating sufficient returns to cover its cost of capital. Similarly, SPX Technologies, Inc. (SPXC) has a ROIC to WACC ratio of 1.14, indicating moderate efficiency in capital utilization.

BrightSphere Investment Group Inc. (BSIG) stands out with a remarkable ROIC of 31.05% and a WACC of 9.46%, leading to a ROIC to WACC ratio of 3.28. This highlights BrightSphere's exceptional ability to generate returns far exceeding its cost of capital, making it the most efficient among the peers in terms of capital utilization.

Thermon Group Holdings, Inc. (THR) and National Bank Holdings Corporation (NBHC) have ROIC to WACC ratios of 1.08 and 0.98, respectively. While Thermon shows a slight edge in generating returns above its cost of capital, NBHC's ratio suggests it is barely covering its capital costs. This analysis underscores the varying levels of capital efficiency among Enerpac and its peers.