Enerpac Tool Group Corp. (NYSE:EPAC) Outshines Competitors in Capital Efficiency

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, Inc. (HLIO) and SPX Technologies, Inc. (SPXC), which also operate in the industrial tools and technology space. Enerpac Tool Group Corp. boasts a Return on Invested Capital (ROIC) of 15.07% and a Weighted Average Cost of Capital (WACC) of 8.82%. This results in a ROIC to WACC ratio of 1.71, indicating that Enerpac is generating returns well above its cost of capital. This suggests that the company is effectively using its capital to create value for its shareholders.

In comparison, Helios Technologies, Inc. has a ROIC of 4.57% and a WACC of 9.92%, resulting in a ROIC to WACC ratio of 0.46. This indicates that Helios is not generating sufficient returns to cover its cost of capital, which may be a concern for investors. SPX Technologies, Inc., on the other hand, has a ROIC of 10.90% and a WACC of 9.39%, with a ROIC to WACC ratio of 1.16, showing a moderate level of capital efficiency.

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, far exceeding its cost of capital. This level of efficiency is unmatched among its peers, making it a noteworthy performer in the group. Thermon Group Holdings, Inc. (THR) and National Bank Holdings Corporation (NBHC) also present interesting cases. Thermon has a ROIC of 8.21% and a WACC of 7.48%, resulting in a ROIC to WACC ratio of 1.10, indicating a slight efficiency in capital utilization. Meanwhile, NBHC has a ROIC of 16.84% and a WACC of 17.72%, with a ROIC to WACC ratio of 0.95, suggesting that its returns are just below its cost of capital.