Wag! Group Co. (NASDAQ:PET) Financial Analysis

• Wag! Group Co. (NASDAQ:PET) has a ROIC of -40.08% and a WACC of 21.77%, indicating value destruction due to not covering its cost of capital.
• Peers Semantix, Inc. (STIX) and Akili, Inc. (AKLI) also show negative ROICs and high WACCs, suggesting similar capital inefficiencies.

Wag! Group Co. (NASDAQ:PET) is a company that provides pet services, including dog walking and pet sitting, through its online platform. The company aims to connect pet owners with trusted pet care providers. In the competitive landscape, Wag! faces competition from other pet service platforms and companies offering similar services.

In evaluating Wag! Group Co., the focus is on its Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC). Wag! has a ROIC of -40.08% and a WACC of 21.77%, resulting in a ROIC to WACC ratio of -1.84. This indicates that Wag! is not generating enough returns to cover its cost of capital, leading to value destruction.

Comparing Wag! to its peers, Semantix, Inc. (STIX) and Akili, Inc. (AKLI) also show negative ROICs of -68.61% and -95.52%, respectively. Their WACCs are 17.76% and 13.27%, leading to ROIC to WACC ratios of -3.86 and -7.20. Like Wag!, these companies are not covering their cost of capital, indicating inefficiencies in capital utilization.