FMP
Nov 05, 2024(Last modified: Nov 06, 2024)
Intapp, Inc. (NASDAQ:INTA) is a company that provides cloud-based software solutions tailored for professional and financial services firms. The company focuses on helping these firms manage their operations, improve client relationships, and enhance their overall productivity. In the competitive landscape, Intapp faces peers like EverCommerce Inc., Integral Ad Science Holding Corp., Paycor HCM, Inc., Flywire Corporation, and PowerSchool Holdings, Inc.
In evaluating Intapp's financial performance, the Return on Invested Capital (ROIC) is a critical metric. Intapp's ROIC is -5.89%, which is below its Weighted Average Cost of Capital (WACC) of 7.25%. This negative ROIC indicates that Intapp is not generating enough returns to cover its cost of capital, which is a concern for investors.
Comparatively, EverCommerce Inc. has a ROIC of 5.36% against a WACC of 8.97%, resulting in a ROIC to WACC ratio of 0.60. Although EverCommerce's ROIC is positive, it still falls short of covering its cost of capital. Integral Ad Science Holding Corp. and Paycor HCM, Inc. also show similar challenges, with ROIC to WACC ratios of 0.04 and -0.66, respectively.
Flywire Corporation, however, stands out with a ROIC of 23.68% and a WACC of 8.75%, leading to a ROIC to WACC ratio of 2.70. This indicates that Flywire is effectively utilizing its capital to generate returns well above its cost, highlighting its strong growth potential. PowerSchool Holdings, Inc. also shows a positive ROIC to WACC ratio of 0.23, but it is not as impressive as Flywire's performance.
Overall, while Intapp struggles with a negative ROIC, Flywire Corporation demonstrates the most efficient capital utilization among its peers, making it a company with significant growth potential.
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