SEACOR Marine Holdings Inc. (NYSE:SMHI) operates in the marine transportation industry, providing offshore support vessels to the global energy industry. The company focuses on delivering marine transportation services to offshore oil and gas exploration, development, and production facilities. In a competitive landscape, SEACOR Marine competes with companies like Ranger Energy Services, Inc. (RNGR) and Thermon Group Holdings, Inc. (THR).
In evaluating SEACOR Marine's financial performance, the Return on Invested Capital (ROIC) is a crucial metric. SEACOR Marine's ROIC stands at 2.21%, which is significantly lower than its Weighted Average Cost of Capital (WACC) of 10.14%. This indicates that the company is not generating sufficient returns to cover its cost of capital, which can be a concern for investors.
Comparatively, Ranger Energy Services, Inc. (RNGR) has a ROIC of 3.69% and a WACC of 4.73%, resulting in a ROIC to WACC ratio of 0.78. This suggests that Ranger Energy is closer to covering its cost of capital than SEACOR Marine. Meanwhile, Emerald Holding, Inc. (EEX) excels with a ROIC of 9.06% and a WACC of 7.01%, achieving a ROIC to WACC ratio of 1.29, indicating efficient capital utilization.
NCS Multistage Holdings, Inc. (NCSM) and Thermon Group Holdings, Inc. (THR) also demonstrate better capital efficiency than SEACOR Marine. NCSM has a ROIC of 7.53% and a WACC of 6.86%, while THR has a ROIC of 8.87% and a WACC of 7.16%. Both companies have ROIC to WACC ratios above 1, indicating they generate returns exceeding their cost of capital.
Select Water Solutions, Inc. (WTTR) has a ROIC of 2.12% and a WACC of 8.23%, resulting in a ROIC to WACC ratio of 0.26. While WTTR's ratio is slightly better than SEACOR Marine's, it still indicates a need for improvement in capital efficiency. Overall, SEACOR Marine needs to enhance its capital utilization to achieve returns that surpass its cost of capital.
