FMP
Mar 30, 2025(Last modified: Mar 31, 2025)
Ubiquiti Inc. (NYSE:UI) is a company that specializes in providing networking technology and solutions. It is known for its innovative products in wireless data communication and has a strong presence in the global market. Ubiquiti competes with companies like Fair Isaac Corporation, Paylocity Holding Corporation, Monolithic Power Systems, EPAM Systems, and Insulet Corporation, each operating in different segments of the technology and services industry.
Ubiquiti Inc. showcases a remarkable Return on Invested Capital (ROIC) of 63.47%, which is significantly higher than its Weighted Average Cost of Capital (WACC) of 9.22%. This results in a ROIC to WACC ratio of 6.89, indicating that Ubiquiti is highly efficient in generating returns over its cost of capital. This efficiency is a testament to the company's effective capital utilization strategies.
In comparison, Fair Isaac Corporation (FICO) has a ROIC of 45.08% and a WACC of 10.33%, resulting in a ROIC to WACC ratio of 4.37. While FICO also demonstrates efficient capital utilization, it falls short of Ubiquiti's performance. This suggests that Ubiquiti is more adept at leveraging its capital to generate higher returns.
Monolithic Power Systems, Inc. (MPWR) follows closely with a ROIC of 50.63% and a WACC of 8.88%, leading to a ROIC to WACC ratio of 5.70. This indicates strong capital efficiency, although still not matching Ubiquiti's level. The comparison highlights Ubiquiti's superior ability to generate returns above its cost of capital, setting it apart from its peers.
Other peers like Paylocity Holding Corporation (PCTY) and EPAM Systems, Inc. (EPAM) have lower ROIC to WACC ratios of 0.49 and 0.92, respectively. These figures suggest less efficient capital utilization compared to Ubiquiti. Insulet Corporation (PODD) also lags with a ratio of 1.60, further emphasizing Ubiquiti's leading position in capital efficiency among its peers.
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