• MeridianLink’s ROIC stands at 0.67%, signaling struggles to generate substantial returns on invested capital.
• EverCommerce Inc. exceeds with a ROIC of 1.42% and a WACC of 8.41%, showing superior capital efficiency.
• MeridianLink’s analysis shows it lags in capital efficiency compared to competitors like EverCommerce Inc. and PowerSchool Holdings, Inc.

MeridianLink, Inc. (NYSE: MLNK) specializes in software solutions tailored for financial institutions. Their products encompass a variety of tools that assist banks and credit unions in enhancing operational efficiency and customer engagement. Within its competitive environment, MeridianLink contends with notable rivals such as PowerSchool Holdings, Inc., CS Disco, Inc., EverCommerce Inc., Intapp, Inc., and Paycor HCM, Inc.

When assessing MeridianLink’s financial metrics, the return on invested capital (ROIC) and the weighted average cost of capital (WACC) are paramount. MeridianLink has a current ROIC of 0.67% together with a WACC of 7.94%. This results in a ROIC to WACC ratio of 0.085, indicating inefficacy in generating returns on capital against its cost of capital.

In comparison, EverCommerce Inc. presents a stronger financial position with a ROIC of 1.42% and a WACC of 8.41%, resulting in a more favorable ROIC to WACC ratio of 0.169. This implies that EverCommerce utilizes its capital more effectively to generate returns compared to MeridianLink.

In the competitive space, peers like PowerSchool Holdings, Inc. and CS Disco, Inc. yield different outcomes in capital efficiency. PowerSchool features a ROIC to WACC ratio of 0.120, while CS Disco reports a troubling negative ratio of -3.082, showcasing severe inefficiencies. While MeridianLink’s performance remains positive, it still lacks the competitive edge found in some of its counterparts regarding capital efficiency.