FMP
Nov 25, 2025(Last modified: Nov 26, 2025)
Verra Mobility Corporation (NASDAQ:VRRM) specializes in smart transportation solutions, offering services like toll and violations management, and commercial fleet services. The company operates in a competitive landscape with peers such as International Money Express, Inc. (IMXI), Option Care Health, Inc. (OPCH), and R1 RCM Inc. (RCM). A key metric for evaluating these companies is the comparison between Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC).
Verra Mobility's ROIC is 4.72%, which is lower than its WACC of 5.78%. This results in a ROIC to WACC ratio of 0.82, indicating that the company is not generating sufficient returns to cover its cost of capital. This suggests potential inefficiencies in how Verra Mobility utilizes its capital, which could impact its financial performance and competitiveness.
In contrast, International Money Express, Inc. (IMXI) demonstrates strong capital efficiency with a ROIC of 14.18% and a WACC of 6.93%. This results in a ROIC to WACC ratio of 2.05, indicating that IMXI is generating returns well above its cost of capital. This efficiency highlights IMXI's effective capital utilization compared to Verra Mobility.
Option Care Health, Inc. (OPCH) also shows efficient capital use with a ROIC of 9.20% and a WACC of 6.85%, resulting in a favorable ROIC to WACC ratio of 1.34. This suggests that OPCH is effectively generating returns on its invested capital, unlike Verra Mobility, which struggles to exceed its cost of capital.
R1 RCM Inc. (RCM) shares a similar challenge with Verra Mobility, having a ROIC of 0.96% and a WACC of 7.69%. This results in a low ROIC to WACC ratio of 0.12, indicating significant inefficiencies in capital utilization. Both RCM and Verra Mobility need to improve their capital management to enhance their financial performance.
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