Aytu BioPharma, Inc. (NASDAQ:AYTU) is a pharmaceutical company that focuses on developing and commercializing novel therapeutics. The company operates in a competitive landscape with peers like Co-Diagnostics, Inc., AIM ImmunoTech Inc., iBio, Inc., Biocept, Inc., and OpGen, Inc. These companies are also involved in the biotechnology and pharmaceutical sectors, each striving to innovate and capture market share.
In evaluating Aytu BioPharma's financial performance, the Return on Invested Capital (ROIC) is a critical metric. Aytu's ROIC stands at -18.15%, which is significantly lower than its Weighted Average Cost of Capital (WACC) of 23.10%. This results in a ROIC to WACC ratio of -0.79, indicating that the company is not generating enough returns to cover its cost of capital. This is a red flag for investors as it suggests inefficiencies in capital utilization.
When comparing Aytu BioPharma to its peers, Co-Diagnostics, Inc. emerges with the highest ROIC to WACC ratio of -14.47, despite being negative. Co-Diagnostics has a ROIC of -69.90% and a WACC of 4.83%. This comparison shows that while Co-Diagnostics is also not covering its cost of capital, it is relatively closer to breaking even than Aytu BioPharma and other peers.
AIM ImmunoTech Inc. presents a more concerning picture with a ROIC of -451.42% against a WACC of 4.97%, resulting in a ROIC to WACC ratio of -90.85. Similarly, iBio, Inc. and Biocept, Inc. have ROIC to WACC ratios of -18.82 and -26.61, respectively, indicating significant challenges in generating returns above their cost of capital. OpGen, Inc. also struggles with a ROIC of -408.66% and a WACC of 13.36%, leading to a ratio of -30.58.
Overall, the analysis highlights that all companies, including Aytu BioPharma, are currently operating with negative ROIC to WACC ratios. This suggests that they are not generating sufficient returns to cover their cost of capital. Investors should consider these metrics alongside other financial and strategic factors when evaluating investment opportunities in these companies.
Symbol | Price | %chg |
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SIDO.JK | 560 | -0.89 |
TSPC.JK | 2340 | 1.28 |
000105.KS | 106000 | 0.47 |
000100.KS | 119900 | -0.5 |
Aytu BioPharma, Inc. (NASDAQ:AYTU) is a specialty pharmaceutical company focused on commercializing novel therapeutics. The company operates in a competitive landscape with peers like Co-Diagnostics, Inc., AIM ImmunoTech Inc., iBio, Inc., Biocept, Inc., and OpGen, Inc. These companies are also involved in the biotechnology and pharmaceutical sectors, each striving to innovate and capture market share.
Aytu BioPharma's Return on Invested Capital (ROIC) is -18.15%, while its Weighted Average Cost of Capital (WACC) is 23.23%. This results in a ROIC to WACC ratio of -0.78, indicating that the company is not generating enough returns to cover its cost of capital. This is a red flag for investors, as it suggests inefficiency in using its capital to generate profits.
In comparison, Co-Diagnostics, Inc. has a ROIC of -69.90% and a WACC of 9.04%, leading to a ROIC to WACC ratio of -7.73. Although still negative, Co-Diagnostics has the least negative ratio among its peers, suggesting it is closer to covering its cost of capital. This could imply a relatively better potential for financial improvement.
AIM ImmunoTech Inc. shows a ROIC of -451.42% against a WACC of 5.76%, resulting in a ROIC to WACC ratio of -78.36. This significant negative ratio highlights the company's struggle to generate returns, making it less attractive to investors compared to its peers. Similarly, iBio, Inc. and Biocept, Inc. also exhibit negative ROIC to WACC ratios of -9.95 and -26.61, respectively, indicating challenges in covering their capital costs.
OpGen, Inc. presents a ROIC of -408.66% and a WACC of 13.54%, leading to a ROIC to WACC ratio of -30.18. This further emphasizes the difficulties faced by these companies in generating sufficient returns. Investors should carefully consider these financial metrics, as they reflect the companies' current inefficiencies in capital utilization.
Aytu BioPharma, Inc. (NASDAQ:AYTU) is a specialty pharmaceutical company focused on developing and commercializing novel therapeutics. The company operates in a competitive landscape with peers like Co-Diagnostics, Inc., AIM ImmunoTech Inc., iBio, Inc., Biocept, Inc., and OpGen, Inc. These companies are also engaged in the biotechnology and pharmaceutical sectors, each striving to innovate and capture market share.
Aytu BioPharma's Return on Invested Capital (ROIC) is -18.15%, while its Weighted Average Cost of Capital (WACC) is 22.73%. This results in a ROIC to WACC ratio of -0.80, indicating that the company is not generating enough returns to cover its cost of capital. This is a concerning sign for investors, as it suggests inefficiency in capital utilization.
In comparison, Co-Diagnostics, Inc. has a ROIC of -69.90% and a WACC of 5.09%, resulting in a ROIC to WACC ratio of -13.72. Despite being negative, this ratio is the highest among the peers, suggesting that Co-Diagnostics is relatively closer to covering its cost of capital. However, it still falls short of achieving positive returns.
AIM ImmunoTech Inc. presents a more challenging scenario with a ROIC of -451.42% and a WACC of 5.18%, leading to a ROIC to WACC ratio of -87.20. This indicates a significant gap between the returns generated and the cost of capital, highlighting inefficiencies in capital utilization.
Similarly, iBio, Inc. and Biocept, Inc. show negative ROIC to WACC ratios of -18.10 and -26.61, respectively. OpGen, Inc. also struggles with a ROIC of -408.66% and a WACC of 13.23%, resulting in a ratio of -30.89. These figures underscore the challenges these companies face in generating sufficient returns on their investments relative to their capital costs.
Aytu BioPharma, Inc. (NASDAQ:AYTU) is a pharmaceutical company that focuses on developing and commercializing novel therapeutics. The company operates in a competitive landscape alongside peers like Co-Diagnostics, Inc. (CODX), AIM ImmunoTech Inc. (AIM), iBio, Inc. (IBIO), and OpGen, Inc. (OPGN). These companies are part of the broader biotech and pharmaceutical industry, which is known for its high research and development costs and the need for efficient capital utilization.
In evaluating Aytu BioPharma's financial performance, the Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC) are crucial metrics. Aytu's ROIC stands at -13.90%, while its WACC is 22.77%. This results in a ROIC to WACC ratio of -0.61, indicating that the company is not generating returns that exceed its cost of capital. This suggests inefficiencies in how Aytu utilizes its capital.
When comparing Aytu to its peers, Co-Diagnostics, Inc. (CODX) has a ROIC of -73.95% and a WACC of 5.14%, resulting in a ROIC to WACC ratio of -14.38. Although still negative, CODX's ratio is the highest among the peer group, suggesting it is relatively more efficient in capital utilization compared to others. However, like Aytu, CODX is also not generating returns above its cost of capital.
AIM ImmunoTech Inc. (AIM) presents a more challenging scenario with a ROIC of -504.92% and a WACC of 5.25%, leading to a ROIC to WACC ratio of -96.25. This indicates significant inefficiencies in capital utilization. Similarly, iBio, Inc. (IBIO) and OpGen, Inc. (OPGN) also show negative ROIC to WACC ratios of -17.36 and -49.94, respectively, highlighting the broader challenges faced by these companies in generating returns that exceed their cost of capital.
Overall, the analysis reveals that Aytu BioPharma and its peers are struggling with capital efficiency, as evidenced by their negative ROIC to WACC ratios. This underscores the need for strategic improvements to enhance profitability and better utilize capital resources in the competitive biotech and pharmaceutical industry.