Sportradar Group AG's Financial Performance and Industry Comparison

Sportradar Group AG (NASDAQ:SRAD) is a leading global provider of sports data and content. The company offers a range of services, including sports data collection, distribution, and analysis, catering to media companies, sports federations, and betting operators. In the competitive landscape, Sportradar faces competition from companies like Genius Sports Limited and Thoughtworks Holding, Inc., which also operate in the sports data and technology sector.

In evaluating Sportradar's financial performance, the Return on Invested Capital (ROIC) is a crucial metric. With a ROIC of 6.67%, Sportradar is not generating returns that exceed its Weighted Average Cost of Capital (WACC) of 14.63%. This indicates that the company is not currently using its capital as effectively as it could be, as the returns do not cover the cost of capital.

Comparatively, Genius Sports Limited (GENI) has a negative ROIC of -7.39% against a WACC of 13.32%, resulting in a ROIC to WACC ratio of -0.555. This suggests that Genius Sports is also struggling to generate sufficient returns on its invested capital. Similarly, Thoughtworks Holding, Inc. (TWKS) shows a negative ROIC of -6.47% with a WACC of 9.10%, leading to a ROIC to WACC ratio of -0.711, indicating inefficiency in capital utilization.

Clearwater Analytics Holdings, Inc. (CWAN) presents a more concerning picture with a ROIC of -30.58% and a WACC of 7.69%, resulting in a ROIC to WACC ratio of -3.974. This highlights significant challenges in generating returns on capital. On the other hand, PowerSchool Holdings, Inc. (PWSC) has a positive ROIC of 1.93% but still falls short of its WACC of 8.36%, with a ROIC to WACC ratio of 0.231, indicating room for improvement.

Mister Car Wash, Inc. (MCW) emerges as the most efficient among the peers, with a ROIC of 4.63% and a WACC of 7.93%, resulting in a ROIC to WACC ratio of 0.584. This suggests that MCW is effectively generating returns that exceed its cost of capital, setting a benchmark for capital efficiency in the industry. In contrast, Sportradar's lower ROIC to WACC ratio indicates potential for enhancing its capital efficiency.