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 through its software solutions. Phreesia operates in a competitive landscape with peers like Health Catalyst, Accolade, Castle Biosciences, and Personalis, all of which are involved in healthcare technology and services.
Phreesia's Return on Invested Capital (ROIC) is -2.67%, while its Weighted Average Cost of Capital (WACC) is 6.85%. This results in a ROIC to WACC ratio of -0.39, 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 -18.28% and a WACC of 6.11%, resulting in a ROIC to WACC ratio of -2.99. This indicates even less efficient capital utilization than Phreesia. Similarly, Accolade and Personalis also show negative ROIC to WACC ratios of -2.41 and -3.01, respectively, highlighting challenges in generating returns above their costs of capital.
Castle Biosciences has a ROIC of -4.44% and a WACC of 8.74%, leading to a ROIC to WACC ratio of -0.51. While this is better than some peers, it still indicates that the company is not generating returns above its cost of capital. Overall, Phreesia and most of its peers face challenges in capital efficiency.
