MeridianLink, Inc. (NYSE:MLNK) Financial Performance and Competitive Analysis

• MeridianLink's ROIC is 0.67%, indicating challenges in generating returns on invested capital efficiently.
• EverCommerce Inc. showcases superior capital efficiency with a ROIC of 1.42% and a WACC of 8.41%.
• Comparative analysis reveals MeridianLink's lower capital efficiency relative to peers like EverCommerce Inc. and PowerSchool Holdings, Inc.

MeridianLink, Inc. (NYSE:MLNK) is a company that provides software solutions for financial institutions. It offers a range of products that help banks and credit unions streamline their operations and improve customer service. In the competitive landscape, MeridianLink faces peers like PowerSchool Holdings, Inc., CS Disco, Inc., EverCommerce Inc., Intapp, Inc., and Paycor HCM, Inc.

In evaluating MeridianLink's financial performance, the Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC) are crucial metrics. MeridianLink's ROIC is 0.67%, while its WACC is 7.94%. This results in a ROIC to WACC ratio of 0.085, indicating that the company is not generating returns on its capital as efficiently as its cost of capital.

Comparatively, EverCommerce Inc. demonstrates superior capital efficiency with a ROIC of 1.42% and a WACC of 8.41%, leading to a ROIC to WACC ratio of 0.169. This suggests that EverCommerce is more effective in using its capital to generate returns relative to its cost of capital than MeridianLink.

Other peers like PowerSchool Holdings, Inc. and CS Disco, Inc. show varying levels of capital efficiency. PowerSchool has a ROIC to WACC ratio of 0.120, while CS Disco has a negative ratio of -3.082, indicating inefficiencies in capital utilization. MeridianLink's performance, while positive, is not as strong as some of its peers in terms of capital efficiency.