MacroGenics ROIC at -49.59% vs 9.30% WACC, Outperforms Karyopharm and Atara
MGNX•MacroGenics reported ROIC of -49.59% versus WACC of 9.30%, yielding an ROIC/WACC ratio of -5.33, indicating its cost of capital is not covered. It outperforms Karyopharm (-10.86) and Atara (-7.55) but trails Xencor (-3.01) and CytomX (-1.40).
1. ROIC and WACC Metrics
Return on Invested Capital (ROIC) measures profit generated from operational investments, while Weighted Average Cost of Capital (WACC) represents the average rate MacroGenics pays for financing. A ROIC below WACC indicates the company is not creating value for shareholders at current investment levels.
2. MacroGenics Capital Efficiency
MacroGenics’ ROIC stands at -49.59% against a WACC of 9.30%, producing an ROIC/WACC ratio of -5.33. This negative spread shows the company’s R&D outlays and operational costs exceed returns on deployed capital, a common scenario in early-stage biopharma firms.
3. Peer Benchmarking
Against peers, MacroGenics’ ratio outperforms Karyopharm Therapeutics (-10.86) and Atara Biotherapeutics (-7.55) but lags behind Xencor (-3.01) and CytomX Therapeutics (-1.40). CytomX’s smaller negative ratio suggests it is managing capital destruction more efficiently than the group.
