Rimini Street Achieves 49.18% ROIC and 4.90× WACC Return
Rimini Street reported a return on invested capital of 49.18% versus a weighted average cost of capital of 10.03%, yielding an ROIC/WACC ratio of 4.90. This outpaces peers such as Issuer Direct (-34.35% ROIC) and Cambium Networks (-48.79% ROIC), underlining its superior capital efficiency.
1. Rimini Street's ROIC and WACC Performance
Rimini Street delivered a return on invested capital (ROIC) of 49.18% against a weighted average cost of capital (WACC) of 10.03%, resulting in an ROIC/WACC ratio of 4.90. This metric underscores the company’s ability to generate high returns on its invested funds.
2. Peer Comparison Highlights RMNI Advantage
Compared with peers, Issuer Direct posted a -34.35% ROIC and a 6.52% WACC (ratio -5.27), while Cambium Networks logged a -48.79% ROIC against a 10.67% WACC (ratio -4.57). OneSpan and Kiniksa achieved positive ratios of 1.63 and 1.75 respectively, yet both remain well below Rimini Street’s performance.
3. Implications for Investors
Such exceptional capital efficiency may support premium valuation multiples and highlight the strength of the third-party software support model. Sustaining a high ROIC relative to WACC will be key for long-term investor confidence and share performance.