High Capital ExpendituresSignificant capital expenditures limit free cash flow, potentially constraining liquidity and the ability to fund new projects or return capital to shareholders.
Modest Return On EquityLow ROE suggests inefficient use of equity capital, which may hinder shareholder value creation and indicate potential areas for operational improvement.
Cash Flow EfficiencyWhile cash flow management is better, high capital spending affects free cash flow, which could impact the company's ability to invest in growth or reduce debt.