RADCOM's ROCE Continues to Improve, Generating Higher Returns

RADCOM (NASDAQ:RDCM) has a return on capital employed (ROCE) of 6.0%, which is low compared to the software industry average of 7.5%. However, the company has broken into profitability after generating losses five years ago and is employing 45% more capital than previously, indicating reinvestment opportunities that can generate higher returns. Despite the stock returning only 20% to shareholders over the last five years, its promising fundamentals may not be recognized yet by investors.