Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) is a company that specializes in providing secure digital document exchange solutions. It operates in a competitive landscape with peers like Ziff Davis, Inc., Sterling Check Corp., PC Connection, Inc., N-able, Inc., and Enfusion, Inc. A key metric to evaluate its performance is the Return on Invested Capital (ROIC) compared to the Weighted Average Cost of Capital (WACC).
CCSI boasts a robust ROIC of 18.90% against a WACC of 8.04%, resulting in a ROIC to WACC ratio of 2.35. This indicates that CCSI is generating returns significantly above its cost of capital, highlighting its effective use of capital. This efficiency is a positive indicator for investors, suggesting potential for value creation.
In comparison, Ziff Davis, Inc. has a ROIC of 5.70% and a WACC of 7.37%, leading to a ROIC to WACC ratio of 0.77. This suggests that Ziff Davis is not generating returns above its cost of capital, indicating less efficient capital use compared to CCSI.
Sterling Check Corp. and N-able, Inc. both show negative ROIC to WACC ratios of -0.01 and -0.34, respectively. This reflects their inability to generate returns above their cost of capital, contrasting sharply with CCSI's strong performance.
PC Connection, Inc. has a ROIC to WACC ratio of 1.27, the highest among CCSI's peers. However, it still falls short of CCSI's ratio of 2.35, underscoring CCSI's superior capital efficiency. Enfusion, Inc. also lags with a ratio of 0.40, further emphasizing CCSI's leading position in capital utilization.
