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Intapp, Inc. (NASDAQ:INTA) Financial Performance Analysis

  • Intapp's ROIC is -5.33%, indicating inefficiencies in capital utilization.
  • EverCommerce and Integral Ad Science show better ROIC to WACC ratios compared to Intapp, but still struggle to cover their cost of capital.
  • Paycor HCM, Inc. and Flywire Corporation also have negative ROICs, similar to Intapp, highlighting a common challenge in the sector.

Intapp, Inc. (NASDAQ:INTA) is a company that provides cloud-based software solutions tailored for professional and financial services firms. The company focuses on helping these firms manage their operations, improve client relationships, and enhance productivity. Intapp competes with other software providers like EverCommerce Inc., Integral Ad Science Holding Corp., Paycor HCM, Inc., Flywire Corporation, and PowerSchool Holdings, Inc.

In evaluating Intapp's financial performance, the Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC) are crucial metrics. Intapp's ROIC is -5.33%, while its WACC is 6.98%. This results in a ROIC to WACC ratio of -0.76, indicating that Intapp is not generating enough returns to cover its cost of capital. This suggests inefficiencies in how the company utilizes its capital.

Comparatively, EverCommerce Inc. has a ROIC of 0.42% and a WACC of 8.24%, leading to a ROIC to WACC ratio of 0.05. Although EverCommerce's ROIC is positive, it still falls short of covering its cost of capital. Integral Ad Science Holding Corp. shows a more favorable scenario with a ROIC of 4.06% against a WACC of 11.03%, resulting in a ROIC to WACC ratio of 0.37, the highest among the peers analyzed.

Paycor HCM, Inc. and Flywire Corporation both have negative ROICs of -0.68% and -0.29%, respectively. Their WACC figures are 6.35% and 9.90%, leading to ROIC to WACC ratios of -0.11 and -0.03. These figures indicate that both companies, like Intapp, are not generating sufficient returns to cover their cost of capital. PowerSchool Holdings, Inc. has a positive ROIC of 0.84% and a WACC of 8.36%, resulting in a ROIC to WACC ratio of 0.10, showing a slight edge over some peers but still not optimal.