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

• Enerpac Tool Group Corp. (NYSE:EPAC) showcases a Return on Invested Capital (ROIC) of 15.07% and a Weighted Average Cost of Capital (WACC) of 8.54%, indicating effective capital utilization.
• Comparatively, BrightSphere Investment Group Inc. leads with a ROIC of 31.05% and a WACC of 9.46%, demonstrating superior capital efficiency among peers.
• National Bank Holdings Corporation presents a concern with a ROIC of 16.84% and a WACC of 17.93%, suggesting it is not covering its cost of capital.

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. boasts a Return on Invested Capital (ROIC) of 15.07% and a Weighted Average Cost of Capital (WACC) of 8.54%. This results in a ROIC to WACC ratio of 1.77, indicating that Enerpac is effectively using its capital to generate returns that exceed its cost of capital. This is a positive sign for investors, as it suggests that the company is creating value.

In comparison, Helios Technologies, Inc. (HLIO) has a ROIC of 4.57% and a WACC of 9.67%, resulting in a ROIC to WACC ratio of 0.47. This indicates that Helios is not generating returns that cover its cost of capital, which could be a concern for investors. SPX Technologies, Inc. (SPXC) performs better with a ROIC to WACC ratio of 1.20, showing that it is generating returns above its cost of capital, but not as efficiently as Enerpac.

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 indicates that BrightSphere is highly efficient in generating returns on its invested capital relative to its cost of capital, outperforming Enerpac and other peers in this aspect. Thermon Group Holdings, Inc. (THR) also shows a positive ROIC to WACC ratio of 1.14, indicating effective capital utilization, though not as strong as Enerpac's.

National Bank Holdings Corporation (NBHC) presents a unique case with a ROIC of 16.84% and a WACC of 17.93%, resulting in a ROIC to WACC ratio of 0.94. This suggests that NBHC is not covering its cost of capital, which could be a red flag for investors. Overall, Enerpac Tool Group Corp. demonstrates solid capital efficiency, but BrightSphere Investment Group Inc. leads the peer group with superior capital utilization.