Phreesia, Inc. (NYSE:PHR) is a healthcare technology company that provides a patient intake and engagement platform. The company aims to improve the patient experience and streamline administrative processes in healthcare settings. Phreesia operates in a competitive landscape with peers like Health Catalyst, Veracyte, Accolade, Castle Biosciences, and Personalis, each offering unique solutions in the healthcare technology space.
Phreesia's Return on Invested Capital (ROIC) is -12.98%, while its Weighted Average Cost of Capital (WACC) is 6.71%. This results in a ROIC to WACC ratio of -1.93, indicating that the company is not generating returns above its cost of capital. This is a concern for investors as it suggests inefficient capital utilization.
In comparison, Health Catalyst has a ROIC of -16.99% and a WACC of 6.12%, resulting in a ROIC to WACC ratio of -2.78. This indicates even less efficient capital utilization than Phreesia. Accolade and Personalis also show negative ROIC to WACC ratios of -2.91 and -3.19, respectively, highlighting similar challenges in generating returns above their cost of capital.
Castle Biosciences has a ROIC of -4.44% and a WACC of 8.60%, resulting in a ROIC to WACC ratio of -0.52. While still negative, it is closer to breaking even compared to other peers. Overall, Phreesia and its peers face challenges in generating sufficient returns to cover their cost of capital, which could be a concern for investors.
