Quantum Corporation (NASDAQ:QMCO) specializes in data storage and management solutions, offering services and products that assist businesses in storing, managing, and protecting their data. In the competitive landscape, Quantum faces peers like Quantum Computing, Inc., PowerFleet, Inc., Rimini Street, Inc., Ribbon Communications Inc., and Usio, Inc., each with varying degrees of capital efficiency.
Quantum's ROIC is 0.87%, which is significantly lower than its WACC of 14.52%. This indicates that Quantum is not generating sufficient returns to cover its cost of capital, suggesting inefficiencies in how it utilizes its capital. The ROIC to WACC ratio of 0.06 further highlights this challenge.
In comparison, Quantum Computing, Inc. has a negative ROIC of -33.77% against a WACC of 17.51%, resulting in a ROIC to WACC ratio of -1.93. This suggests even greater inefficiencies in capital utilization compared to Quantum. Similarly, PowerFleet, Inc. and Rimini Street, Inc. also show negative ROICs of -5.93% and -70.36%, respectively, with their WACC figures at 11.66% and 9.14%.
Ribbon Communications Inc. presents a more favorable scenario with a ROIC of 2.93% and a WACC of 9.36%, leading to a ROIC to WACC ratio of 0.31. This indicates a better, yet still limited, ability to generate returns above its cost of capital compared to Quantum.
Usio, Inc. stands out with a ROIC of 133.16% and a WACC of 12.04%, resulting in a ROIC to WACC ratio of 11.06. This exceptional performance suggests that Usio is highly efficient in capital utilization, generating returns far exceeding its cost of capital, and positioning it as a leader in this peer group.
