Xperi Inc. (NASDAQ:XPER) is a technology company that specializes in developing and licensing audio, imaging, and semiconductor technologies. The company operates in a competitive landscape, with peers such as Adeia Inc., Varex Imaging Corporation, nLIGHT, Inc., OneSpan Inc., and Ichor Holdings, Ltd. These companies also focus on technology and innovation, making the comparison of financial metrics like ROIC and WACC crucial for investors.
Xperi's ROIC of -6.87% compared to its WACC of 5.89% indicates that the company is not generating enough returns to cover its cost of capital. This negative ROIC suggests inefficiencies in capital utilization, which could be a concern for investors looking for profitable growth. The ROIC to WACC ratio of -1.17 further highlights this underperformance.
In contrast, Adeia Inc. shows a positive ROIC of 12.14% against a WACC of 8.21%, resulting in a ROIC to WACC ratio of 1.48. This indicates that Adeia is effectively using its capital to generate returns above its cost, showcasing better capital efficiency compared to Xperi.
Varex Imaging Corporation, with a ROIC of -11.14% and a WACC of 5.42%, has a ROIC to WACC ratio of -2.05. This is even lower than Xperi's, indicating greater inefficiency in capital utilization. Similarly, nLIGHT, Inc. has a ROIC of -23.67% and a WACC of 14.84%, resulting in a ROIC to WACC ratio of -1.59, which also reflects poor capital efficiency.
OneSpan Inc. stands out with a ROIC of 22.18% and a WACC of 9.07%, leading to the highest ROIC to WACC ratio of 2.45 among the peers. This suggests that OneSpan is highly efficient in using its capital to generate returns, making it a strong performer in this group.
