• Steel Partners Holdings L.P. (NYSE:SPLP) showcases a high Return on Invested Capital (ROIC) of 20.56%, indicating efficient capital utilization.
• Tiptree Inc. leads the peer group with an outstanding ROIC of 64.15% and a ROIC to WACC ratio of 8.76, highlighting its exceptional capital efficiency.
• Comparative analysis reveals SPLP's strong performance in generating returns above its cost of capital, with a ROIC to WACC ratio of 2.50, outperforming most peers except Tiptree Inc.

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.

In evaluating SPLP's financial efficiency, the Return on Invested Capital (ROIC) is a key metric. SPLP boasts a ROIC of 20.56%, which is significantly higher than its Weighted Average Cost of Capital (WACC) of 8.22%. This results in a ROIC to WACC ratio of 2.50, indicating that SPLP is effectively generating returns well above its cost of capital.

When comparing SPLP to its peers, Thermon Group Holdings has a ROIC of 7.89% and a WACC of 8.13%, resulting in a ROIC to WACC ratio of 0.97. This suggests that Thermon is not generating returns above its cost of capital, unlike SPLP. Townsquare Media, with a ROIC of 12.65% and a WACC of 6.72%, achieves a ratio of 1.88, showing better capital efficiency than Thermon but still below SPLP.

Regional Management Corp. presents a ROIC of 11.73% against a WACC of 5.01%, yielding a ratio of 2.34. This is close to SPLP's performance, indicating strong capital efficiency. However, Tiptree Inc. outshines all with a ROIC of 64.15% and a WACC of 7.32%, resulting in an impressive ratio of 8.76. This highlights Tiptree's exceptional ability to generate returns on its invested capital.

Perma-Pipe International Holdings also demonstrates strong capital efficiency with a ROIC of 27.06% and a WACC of 5.47%, leading to a ratio of 4.95. While SPLP shows solid performance, Tiptree's superior ratio suggests it is the most efficient in utilizing its capital among the peers. Investors may find these metrics useful when considering investment opportunities in this sector.