DigitalBridge Group, Inc. (NYSE:DBRG) is a global digital infrastructure investment firm, focusing on owning, operating, and investing across the digital ecosystem, including data centers, cell towers, and fiber networks. The company competes with other firms in the digital infrastructure space, such as American Tower Corporation and Crown Castle International Corp.
DigitalBridge's Return on Invested Capital (ROIC) is 36.04%, while its Weighted Average Cost of Capital (WACC) is 12.96%. This results in a ROIC to WACC ratio of 2.78, indicating that the company is generating returns well above its cost of capital. This efficient capital utilization suggests strong value creation for shareholders.
In comparison, BrightSpire Capital, Inc. (BRSP) has a negative ROIC of -13.16% and a WACC of 5.97%, resulting in a ROIC to WACC ratio of -2.20. This negative ratio indicates that BrightSpire is not generating returns above its cost of capital, which could be concerning for investors.
Zurn Elkay Water Solutions Corporation (ZWS) has a ROIC of 8.78% and a WACC of 7.12%, leading to a ROIC to WACC ratio of 1.23. While Zurn Elkay is generating returns above its cost of capital, its ratio is significantly lower than DigitalBridge's, indicating less efficient capital utilization.
Alignment Healthcare, Inc. (ALHC) and Hayward Holdings, Inc. (HAYW) both have ROICs below their WACCs, with ratios of 0.28 and 0.66, respectively. This suggests that these companies are not currently covering their cost of capital, highlighting inefficiencies in their capital utilization compared to DigitalBridge.
