Similarweb Ltd. (NYSE:SMWB) is a digital intelligence company that provides data-driven insights to help businesses understand, track, and grow their digital market presence. The company offers a platform that enables users to analyze web traffic and performance metrics. In the competitive landscape, Similarweb faces peers like WalkMe Ltd., Taboola.com Ltd., Kaltura, Inc., Riskified Ltd., and Alkami Technology, Inc.
In evaluating Similarweb's financial performance, the focus is on its Return on Invested Capital (ROIC) of -34.10% and Weighted Average Cost of Capital (WACC) of 8.74%. This negative ROIC indicates that the company is not generating enough returns to cover its cost of capital, which is a concern for investors.
Comparing Similarweb to its peers, WalkMe Ltd. has a ROIC of -5.48% and a WACC of 4.36%, resulting in a ROIC to WACC ratio of -1.26. This suggests that WalkMe, like Similarweb, is also struggling to generate returns above its cost of capital. Riskified Ltd. and Alkami Technology, Inc. are in similar positions, with negative ROIC to WACC ratios of -1.46 and -0.78, respectively.
On the other hand, Taboola.com Ltd. shows a positive ROIC of 4.67% against a WACC of 8.79%, resulting in a ROIC to WACC ratio of 0.53. This indicates that Taboola is generating returns, albeit not enough to fully cover its cost of capital. However, Kaltura, Inc. stands out with a remarkable ROIC of 330.12% and a ROIC to WACC ratio of 39.45, highlighting its strong capital efficiency and growth potential.
