Flywire Corporation (NASDAQ:FLYW) is a global payments enablement and software company. It provides integrated payment solutions and services to various industries, including education, healthcare, and travel. Flywire's platform helps organizations streamline their payment processes, making transactions more efficient and secure. The company competes with other technology firms like EverCommerce Inc., Alkami Technology, Inc., and TaskUs, Inc.
In analyzing Flywire's financial performance, the focus is on its Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC). Flywire's ROIC is -1.19%, while its WACC is 9.59%. This negative ROIC indicates that Flywire is not generating returns above its cost of capital, suggesting inefficiencies in capital utilization.
Comparatively, EverCommerce Inc. has a ROIC of 2.37% and a WACC of 11.13%, resulting in a ROIC to WACC ratio of 0.21. This indicates that EverCommerce is generating returns, albeit below its cost of capital. Alkami Technology, Inc. and Xometry, Inc. both have negative ROICs of -11.39% and -9.04%, respectively, with ROIC to WACC ratios of -1.80 and -1.36, indicating similar challenges in capital efficiency.
TaskUs, Inc. stands out with a ROIC of 6.86% and a WACC of 12.71%, resulting in the highest ROIC to WACC ratio of 0.54 among its peers. This suggests that TaskUs is effectively utilizing its capital to generate returns significantly above its cost of capital, making it a potentially attractive investment opportunity.
CS Disco, Inc. has the lowest ROIC to WACC ratio of -2.93, with a ROIC of -39.56% and a WACC of 13.50%. This indicates significant inefficiencies in capital utilization. Overall, while Flywire is currently underperforming in terms of ROIC relative to its WACC, TaskUs demonstrates the most efficient use of capital among its peers.
