Phreesia, Inc. (NYSE:PHR) is a healthcare technology company that provides a platform for patient intake and engagement. The company aims to streamline the patient experience and improve healthcare outcomes. In the competitive landscape, Phreesia faces peers like Health Catalyst, Veracyte, Accolade, Castle Biosciences, and Personalis, each with varying financial metrics.
Phreesia's Return on Invested Capital (ROIC) is 0.52%, which is significantly lower than its Weighted Average Cost of Capital (WACC) of 7.01%. This indicates that Phreesia is not currently generating returns that exceed its cost of capital. The ROIC to WACC ratio of 0.074 further highlights this inefficiency in capital utilization.
In comparison, Health Catalyst has a negative ROIC of -16.99% against a WACC of 6.57%, resulting in a ROIC to WACC ratio of -2.59. This suggests that Health Catalyst is also struggling to generate returns above its cost of capital, performing worse than Phreesia in this regard.
Veracyte, with a ROIC of 0.99% and a WACC of 13.50%, has a ROIC to WACC ratio of 0.073. Although Veracyte's ratio is slightly lower than Phreesia's, it still indicates that the company is not generating sufficient returns to cover its cost of capital. However, Veracyte is noted for having the highest growth potential among its peers.
Accolade, Castle Biosciences, and Personalis all have negative ROICs, with ratios of -31.79%, -4.28%, and -30.51% respectively, and WACCs of 10.94%, 8.83%, and 11.72%. Their ROIC to WACC ratios are -2.91, -0.48, and -2.60, respectively, indicating significant challenges in generating returns above their cost of capital.
