Tenable Holdings, Inc. (NASDAQ:TENB) is a cybersecurity company that specializes in vulnerability management. It provides solutions to help organizations identify and manage cybersecurity risks. In the competitive landscape, Tenable faces peers like Rapid7, Varonis Systems, Qualys, Elastic N.V., and Smartsheet, each with varying degrees of capital efficiency.
Tenable's Return on Invested Capital (ROIC) is -0.97%, which is below its Weighted Average Cost of Capital (WACC) of 7.20%. This negative ROIC indicates that Tenable is not generating enough returns to cover its cost of capital, which is a concern for investors looking for efficient capital utilization.
In comparison, Rapid7 has a positive ROIC of 1.29% against a WACC of 5.90%, resulting in a ROIC to WACC ratio of 0.22. This suggests that Rapid7 is more effective in generating returns on its invested capital than Tenable, although still not optimal.
Varonis Systems shows a stronger performance with a ROIC of 9% and a WACC of 6.26%, leading to a ROIC to WACC ratio of 1.43. This indicates that Varonis is generating returns well above its cost of capital, showcasing better capital efficiency.
Qualys stands out with a remarkable ROIC of 27.75% and a WACC of 6.58%, resulting in the highest ROIC to WACC ratio of 4.21 among the peers. This highlights Qualys as the most efficient in capital utilization, significantly outperforming Tenable and its other competitors.
