Steel Partners Holdings L.P. (NYSE:SPLP) Capital Efficiency Analysis

• Steel Partners Holdings L.P. (NYSE:SPLP) showcases a Return on Invested Capital (ROIC) of 13.15% which is higher than its Weighted Average Cost of Capital (WACC) of 8.36%.
• Regional Management Corp. (RM) demonstrates the most efficient use of capital among peers with a ROIC of 57.96% and a WACC of 4.94%.
• Comparison with peers like Thermon Group Holdings, Townsquare Media, Tiptree Inc., and Perma-Pipe International Holdings reveals varying levels of capital efficiency.

Steel Partners Holdings L.P. (NYSE:SPLP) is a diversified global holding company that engages in multiple business segments, including industrial products, energy, and financial services. The company aims to create value through strategic investments and operational improvements. In the competitive landscape, SPLP's performance is often compared with peers like Thermon Group Holdings, Townsquare Media, Regional Management Corp., Tiptree Inc., and Perma-Pipe International Holdings.

Steel Partners Holdings L.P. showcases a Return on Invested Capital (ROIC) of 13.15%, which is higher than its Weighted Average Cost of Capital (WACC) of 8.36%. This indicates that SPLP is effectively generating returns that surpass its cost of capital, a positive indicator for investors. The ROIC to WACC ratio of 1.57 further emphasizes SPLP's ability to utilize its capital efficiently.

In comparison, Thermon Group Holdings, Inc. (THR) has a ROIC of 7.79% and a WACC of 8.36%, resulting in a ROIC to WACC ratio of 0.93. This suggests that THR is not generating returns above its cost of capital, which may be a concern for investors. On the other hand, Townsquare Media, Inc. (TSQ) has a ROIC of 12.65% and a WACC of 6.76%, leading to a favorable ROIC to WACC ratio of 1.87, indicating efficient capital use.

Regional Management Corp. (RM) stands out with a remarkable ROIC of 57.96% against a WACC of 4.94%, resulting in the highest ROIC to WACC ratio of 11.72 among the peers. This suggests that RM is exceptionally efficient in generating returns on its invested capital, highlighting its strong financial performance. Similarly, Tiptree Inc. (TIPT) and Perma-Pipe International Holdings, Inc. (PPIH) also demonstrate efficient capital utilization with ROIC to WACC ratios of 8.01 and 4.46, respectively.

Overall, while Steel Partners Holdings L.P. is performing well with a ROIC exceeding its WACC, Regional Management Corp. demonstrates the most efficient use of capital among its peers, with a notably high ROIC to WACC ratio. This comparison provides valuable insights into the financial health and capital efficiency of these companies.