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Best return on capital tech stocks

7/22/2025 03:08pm

``` The deep research logic is organized as follows: Okay, let's tackle this question about the best return on capital tech stocks. The user is interested in tech stocks with high ROIC, so I need to focus on the data provided in the references. First, looking at Reference 1, there's a list of top 10 tech stocks sorted by ROIC as of 2025-06-30. The top stock is Verses AI with an ROIC of 528.07%, which is extremely high. But wait, I should check if there's any negative information about Verses AI. Reference 5 mentions that Verses AI faces financial uncertainty after an audit, showing recurring net losses and a negative cash flow. Also, Reference 2 notes that their debt-to-equity ratio is negative, which is unusual and might indicate more liabilities than equity. Plus, they've had several stock offerings, which could dilute existing shareholders. So, even though the ROIC is high, the financial health is concerning. Next, Aether Holdings (ATHR) has an ROIC of 309.93%. Reference 8 and 9 talk about a public offering to boost Bitcoin holdings, which might be a strategic move but also introduces risks like market volatility in crypto. There's no mention of institutional ownership or short interest in the provided data, but the user is interested in tech stocks with growth potential, so this could be a consideration. Rubrik (RBRK) has an ROIC of 137.24%. The user profile mentions interest in stocks like GME and MSTR, which are more speculative. Rubrik's ROIC is high, but looking at the analyst ratings in References 22-24, there's a mix of buy and hold ratings. The average price target is around $111, which is higher than the current price of $86.53, suggesting upside potential. However, the stock has a negative last change, indicating recent underperformance. DocuSign (DOCU) has an ROIC of 59.65%. References 33-35 mention recent upgrades and a focus on AI integration, which aligns with the user's interest in tech innovation. The stock has a relatively stable price and positive analyst sentiment, but the ROIC is lower compared to others. Nvidia (NVDA) and Apple (AAPL) have ROICs of 52.77% and 37.2%, respectively. These are well-known companies with strong market positions. However, their ROICs are lower than some of the smaller-cap stocks listed. The user might be looking for higher growth potential, so these might not be the top picks unless the user is interested in stability over growth. ServiceTitan (TTAN) has a very low ROIC of 35.78%, which doesn't fit the "best" category. The user's profile mentions interest in breakout potential, but TTAN's recent insider sales (Reference 43) and low ROIC might not be appealing. I should also consider the user's preference for stocks like GME and MSTR, which are speculative. Verses AI and Aether Holdings fit this profile with high ROICs but come with significant risks. The user might be okay with the risk for the potential reward. In the analysis, I need to highlight the top ROIC stocks but also caution about their financial health. The user is likely looking for high-growth opportunities, so even though there are risks, these stocks could be attractive. I should structure the answer to present the top ROIC stocks, discuss their financial health, and align with the user's interests in growth and tech innovation. Also, the user prefers tech stocks with breakout potential, so mentioning the recent news about Aether's Bitcoin strategy and Verses AI's AI advancements could be relevant. The conclusion should emphasize the high ROIC stocks but also the associated risks, giving the user a balanced view. I need to make sure to cite the references correctly and include the visualization for the top ROIC table. The user's profile indicates a medium to long-term horizon, so the analysis should focus on sustainability of ROIC and growth potential over time. Finally, the answer should be engaging, using emojis and clear headings to make it easy to digest. The user might appreciate a concise yet comprehensive breakdown, highlighting the key points without overwhelming them with too much data. ``` ### 🌟 **Conclusion** The **top tech stocks with the highest Return on Invested Capital (ROIC)** as of 2025-06-30 are **Verses AI (VSAI)**, **Aether Holdings (ATHR)**, and **Rubrik (RBRK)**, with ROICs of **528.07%**, **309.93%**, and **137.24%**, respectively . However, **Verses AI** raises significant red flags due to its **negative cash flow** and **debt-to-equity ratio** , while **Aether Holdings** faces **shareholder dilution risks** . **Rubrik** shows **strong analyst consensus** but has underperformed recently . --- ### 📊 **Analysis of Top ROIC Tech Stocks** #### 1. **Verses AI (VSAI)** - **ROIC**: 528.07% (Highest in the sector) - **Risks**: - **Negative cash flow**: $-8.87M in shareholder equity and $-5.49M loss per share . - **Debt concerns**: Debt-to-equity ratio of -1.6% (indicative of liabilities exceeding equity) . - **Shareholder dilution**: Multiple stock offerings (e.g., $7M in July 2025) . - **Upside**: Recent AI advancements (e.g., 60% better than Google’s DeepMind) . #### 2. **Aether Holdings (ATHR)** - **ROIC**: 309.93% - **Risks**: - **High dilution**: Recent $40M public offering for Bitcoin treasury . - **Speculative**: Expansion into digital assets (e.g., AltcoinInvesting.co acquisition) . - **Upside**: Strategic Bitcoin holdings (85% of proceeds) and AI-driven content . #### 3. **Rubrik (RBRK)** - **ROIC**: 137.24% - **Risks**: - **Price decline**: -1.79% last change . - **High debt**: $15.2M liabilities vs. $6.4M assets . - **Upside**: Strong analyst consensus (15 Buy ratings, $111 avg. price target) . #### 4. **DocuSign (DOCU)** - **ROIC**: 59.65% - **Risks**: Moderate debt and recent price decline (-0.04%) . - **Upside**: AI integration (e.g., Docusign Intelligent Agreement Management) . #### 5. **Nvidia (NVDA)** - **ROIC**: 52.77% - **Risks**: High valuation ($418B market cap) . - **Upside**: AI-driven growth (e.g., $3B renewable energy deal) . #### 6. **Apple (AAPL)** - **ROIC**: 37.2% - **Risks**: Low ROIC relative to peers . - **Upside**: AI adoption in products (e.g., iPhone upgrades) . --- ### 📊 **Key Takeaways** - **Best ROIC**: **VSAI** (528.07%) and **ATHR** (309.93%) lead, but **financial health** is questionable. - **Safest Bet**: **RBRK** (137.24%) with strong analyst support. - **Growth Potential**: **DOCU** (59.65%) and **NVDA** (52.77%) offer stability with AI-driven innovation. Industry is Technology; Top 10 Sorted by ROIC |code|stock code|stock name|Last Price|Last Change|GICS Sector|Return on Invested Capital[20250630]|market_code| |---|---|---|---|---|---|---|---| |VSAI|VSAI.O|Verses AI|11|0|Information Technology|528.066426|186| |ATHR|ATHR.O|Aether Holdings|10.21|-21.822358|Information Technology|309.929867|186| |RBRK|RBRK.N|Rubrik|86.53|-1.7932130000000002|Information Technology|137.241272|169| |LAWR|LAWR.O|Robot|3.34|-10.215054|Information Technology|108.662397|186| |QMCO|QMCO.O|Quantum|9.02|-1.420765|Information Technology|101.34848000000001|185| |DOCU|DOCU.O|DocuSign|79.34|-0.037798|Information Technology|59.652394|185| |NVDA|NVDA.O|Nvidia|171.38|-0.597413|Information Technology|52.772306|185| |NTNX|NTNX.O|Nutanix|75.15|-0.529451|Information Technology|45.976589000000004|185| |AAPL|AAPL.O|Apple|212.48|0.6155889999999999|Information Technology|37.198571|185| |TTAN|TTAN.O|ServiceTitan|113.97|-0.10518000000000001|Information Technology|35.777674999999995|185| --- ### 🎯 **Final Recommendation** For **high-growth tech stocks**, prioritize **Rubrik (RBRK)** due to its **strong analyst consensus** and **sustainable ROIC**. If you’re comfortable with **high risk**, consider **Verses AI (VSAI)** for its **breakthrough AI tech** despite financial instability. Avoid **Aether Holdings (ATHR)** due to **shareholder dilution** and **speculative crypto exposure**.