authID Inc. (NASDAQ:AUID) is a company that specializes in identity verification solutions, providing secure and seamless authentication services. The company operates in a competitive landscape with peers like Blackboxstocks Inc., Augmedix, Inc., Cerberus Cyber Sentinel Corporation, EZFill Holdings Inc., and Zenvia Inc. These companies are also involved in technology and security solutions, each with its unique focus and market approach.
authID Inc. has a Return on Invested Capital (ROIC) of -124.91% and a Weighted Average Cost of Capital (WACC) of 17.06%. This results in a ROIC to WACC ratio of -7.32, indicating that the company is not generating returns sufficient to cover its cost of capital. This negative ratio suggests inefficiencies in utilizing invested capital to generate profits.
In comparison, Blackboxstocks Inc. has a ROIC of -51.57% and a WACC of 4.92%, leading to a ROIC to WACC ratio of -10.48. Augmedix, Inc. shows a ROIC of -73.79% against a WACC of 5.51%, resulting in a ratio of -13.38. Both companies, like authID, are not covering their cost of capital, reflecting challenges in their financial performance.
Cerberus Cyber Sentinel Corporation and EZFill Holdings Inc. also face similar issues. Cerberus has a ROIC of -115.06% and a WACC of 17.13%, with a ratio of -6.72. EZFill Holdings Inc. reports a ROIC of -154.22% and a WACC of 16.69%, resulting in a ratio of -9.24. These figures highlight the struggle of these companies to generate adequate returns.
Zenvia Inc. stands out with a ROIC of 1.25% and a WACC of 17.70%, achieving a ROIC to WACC ratio of 0.07. Although Zenvia's ROIC is still below its WACC, it is the only company among the peers with a positive ROIC, indicating a closer approach to covering its cost of capital. This positions Zenvia as having the most potential for financial improvement among the group.
