Apyx Medical Corporation's Capital Efficiency in Comparison

Apyx Medical Corporation (NASDAQ:APYX) is a company that specializes in advanced energy solutions for surgical and cosmetic markets. It focuses on developing and commercializing products that improve surgical outcomes. Apyx's main competitors include companies like Crinetics Pharmaceuticals, IDEAYA Biosciences, Harrow Health, Evelo Biosciences, and IRadimed Corporation, each with varying degrees of capital efficiency.

Apyx Medical Corporation's financial performance shows a negative Return on Invested Capital (ROIC) of -26.00%, which is concerning when compared to its Weighted Average Cost of Capital (WACC) of 11.47%. This negative ROIC indicates that Apyx is not generating enough returns to cover its cost of capital, resulting in a ROIC to WACC ratio of -2.27. This suggests inefficiency in capital utilization.

In comparison, Crinetics Pharmaceuticals (CRNX) has an even lower ROIC of -34.46% against a WACC of 5.36%, leading to a ROIC to WACC ratio of -6.43. Similarly, IDEAYA Biosciences (IDYA) reports a ROIC of -38.96% and a WACC of 4.76%, resulting in a ratio of -8.18. These figures indicate that both companies are also struggling to generate returns above their cost of capital.

On the other hand, Harrow Health (HROW) and IRadimed Corporation (IRMD) show more favorable metrics. Harrow Health has a positive ROIC of 4.90% with a WACC of 6.41%, resulting in a ROIC to WACC ratio of 0.76. IRadimed Corporation stands out with a ROIC of 20.24% and a WACC of 8.34%, achieving a ROIC to WACC ratio of 2.43. This indicates that IRadimed is effectively utilizing its capital to generate returns well above its cost of capital.

Evelo Biosciences (EVLO) presents a stark contrast with a ROIC of -201.37% and a WACC of 9.04%, leading to a ROIC to WACC ratio of -22.28. This highlights significant inefficiencies in capital utilization. Overall, while Apyx Medical Corporation faces challenges in capital efficiency, IRadimed Corporation demonstrates strong performance in this area, making it a standout among its peers.