Catalyst Bancorp Capital Utilization Report Reveals Inefficiencies
- Catalyst Bancorp’s (NASDAQ:CLST) ROIC of 2.84% indicates inefficient capital utilization as it falls below its WACC of 4.62%.
- TESSCO Technologies (TESS) and World Access, Inc. (WAXS) face similar challenges with negative and low ROIC values.
- Integrated Ventures, Inc. (INTV) and Altigen Communications, Inc. (ATGN) show highly efficient capital utilization with ROICs significantly above WACC.
Catalyst Bancorp, Inc. (NASDAQ:CLST) operates as a banking institution, playing a significant role in a competitive industry. Efficient capital utilization directly impacts investor confidence and long-term growth. Benchmarking performance against peers helps gauge its position.
The reported ROIC of 2.84% is concerning, as it is less than the WACC of 4.62%, indicating that Catalyst is not generating adequate returns on its capital investments.
In comparison, TESSCO Technologies (TESS) shows a troubling negative ROIC of -1.39%, which raises red flags for potential investors despite the lack of full WACC data for a complete analysis.
World Access, Inc. (WAXS) registers a ROIC of 0.57%, still not enough to cover its cost of capital, showcasing similar issues in capital utilization as Catalyst Bancorp.
Conversely, Integrated Ventures, Inc. (INTV) boasts an impressive ROIC of 966.43% compared to a WACC of 16.99%, demonstrating remarkable capital efficiency. Additionally, Altigen Communications, Inc. (ATGN) maintains a solid ROIC of 16.60% which exceeds its WACC of 9.29%, reflecting effective value creation for investors.