Insights into Smart Powerr Corp. and Its Peers' Capital Efficiency

Font: Financial Modeling Prep  • Sep 22, 2025

Smart Powerr Corp. (NASDAQ:CREG) is a company involved in the renewable energy sector, focusing on providing solutions for energy efficiency and sustainability. The company operates in a competitive market alongside peers such as China Jo-Jo Drugstores, Inc. (CJJD), Recon Technology, Ltd. (RCON), Euro Tech Holdings Company Limited (CLWT), and SemiLEDs Corporation (LEDS).

In evaluating Smart Powerr Corp., the Return on Invested Capital (ROIC) is a crucial metric. CREG's ROIC is -2.22%, which is significantly lower than its Weighted Average Cost of Capital (WACC) of 9.34%. This negative ROIC indicates that the company is not generating sufficient returns to cover its cost of capital, highlighting inefficiencies in capital utilization.

Comparatively, China Jo-Jo Drugstores, Inc. (CJJD) and Recon Technology, Ltd. (RCON) show negative ROICs of -6.65% and -9.23%, respectively, both failing to cover their WACC. Euro Tech Holdings Company Limited (CLWT) shows ROIC of 2.12% and a WACC of 8.18%, CLWT achieves a ROIC to WACC ratio of 0.26. The company is not generating sufficient returns to cover its cost of capital.

SemiLEDs Corporation (LEDS) also struggles with a negative ROIC of -20.38% against a WACC of 7.09%, resulting in a ROIC to WACC ratio of -2.88. This further emphasizes the challenges faced by most companies in this group.