Senseonics Holdings, Inc. (AMEX:SENS) is a medical technology company that specializes in the development and commercialization of long-term, implantable continuous glucose monitoring (CGM) systems for people with diabetes. The company's flagship product, the Eversense CGM System, offers a unique approach to glucose monitoring with its long-term implantable sensor. In the competitive landscape, Senseonics faces competition from other companies in the medical technology and biotechnology sectors.
In evaluating Senseonics' financial performance, the comparison between Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC) is crucial. Senseonics has a WACC of 8.89% and a ROIC of -66.62%, resulting in a ROIC to WACC ratio of -7.50. This indicates that the company is not currently generating returns that exceed its cost of capital, which is a concern for investors.
When comparing Senseonics to its peers, Bionano Genomics, Inc. (BNGO) has a WACC of 4.27% and a ROIC of -64.06%, leading to a ROIC to WACC ratio of -15.00. This suggests that Bionano Genomics is also struggling to generate returns above its cost of capital, and its performance is weaker than Senseonics in this regard.
Zomedica Corp. (ZOM) presents a similar challenge with a WACC of 9.37% and a ROIC of -70.67%, resulting in a ROIC to WACC ratio of -7.54. This ratio is slightly worse than Senseonics, indicating that Zomedica is also not effectively using its capital to generate returns.
Among the peers, Castor Maritime Inc. (CTRM) stands out with the highest ROIC to WACC ratio of -0.76, despite still being negative. This suggests that while all companies in this analysis are generating returns below their cost of capital, Castor Maritime is performing relatively better in terms of capital efficiency compared to its peers, including Senseonics.
