Inter & Co, Inc. (NASDAQ:INTR) operates in the financial services sector, competing with various financial service providers. These companies, including Alvotech, ProKidney Corp., Global Business Travel Group, Inc., and Commercial International Bank (Egypt) S.A.E., show varying degrees of financial performance, especially in capital management and utilization.
In evaluating Inter & Co, Inc., the focus is on its Return on Invested Capital (ROIC) of 1.42% and Weighted Average Cost of Capital (WACC) of 10.00%. This results in a ROIC to WACC ratio of 0.14, indicating that INTR's returns are below its cost of capital, suggesting potential inefficiencies in capital utilization.
Comparatively, Alvotech (ALVO) has a ROIC of 3.74% and a WACC of 7.98%, leading to a ROIC to WACC ratio of 0.47. This suggests that ALVO is more effective in generating returns relative to its cost of capital than INTR. Similarly, Global Business Travel Group, Inc. (GBTG) shows a ROIC of 3.59% and a WACC of 8.57%, with a ROIC to WACC ratio of 0.42, indicating better capital efficiency than INTR.
ProKidney Corp. (PROK) presents a different scenario with a negative ROIC of -52.92% and a WACC of 12.14%, resulting in a ROIC to WACC ratio of -4.36. This negative ratio highlights significant challenges in capital utilization for PROK, contrasting with INTR's positive, albeit low, ratio.
Commercial International Bank (Egypt) S.A.E (CIBEY) stands out with a ROIC of 28.66% and a WACC of 22.91%, achieving a ROIC to WACC ratio of 1.25. This indicates that CIBEY is generating returns well above its cost of capital, showcasing efficient capital utilization and potential for higher shareholder value, as highlighted by the analysis.
