Flywire Corporation (NASDAQ:FLYW) is a global payments enablement and software company. It provides integrated payment solutions and services to various industries, including education, healthcare, and travel. Flywire competes with other technology and payment service companies like EverCommerce Inc., Alkami Technology, Inc., Xometry, Inc., TaskUs, Inc., and CS Disco, Inc.
Flywire's Return on Invested Capital (ROIC) is -1.19%, which is below its Weighted Average Cost of Capital (WACC) of 9.59%. This negative ROIC indicates that Flywire is not generating sufficient returns to cover its cost of capital, which is a concern for investors seeking efficient capital utilization.
In comparison, EverCommerce Inc. has a ROIC of 4.95% and a WACC of 9.06%, resulting in a ROIC to WACC ratio of 0.55. This positive ratio suggests that EverCommerce is more efficient in generating returns relative to its cost of capital, making it a more attractive option for investors.
Alkami Technology, Inc. and Xometry, Inc. both have negative ROICs of -11.39% and -9.04%, respectively, with ROIC to WACC ratios of -1.80 and -1.36. These figures indicate that both companies are also struggling to generate returns above their cost of capital, similar to Flywire.
TaskUs, Inc. has a ROIC of 6.86% and a WACC of 13.04%, resulting in a ROIC to WACC ratio of 0.53. While TaskUs is generating returns above its cost of capital, its efficiency is slightly lower than EverCommerce. CS Disco, Inc. has the lowest ROIC to WACC ratio of -2.93, indicating significant inefficiency in capital utilization.
