Return Trends At Kendrion (AMS:KENDR) Aren't Appealing
Kendrion is facing challenges with its return on capital employed (ROCE), currently at 5.7%, which falls short of the Auto Components industry average of 8.8%. The company's returns and capital employed have remained stable over the past five years, indicating a lack of reinvestment that often characterizes mature businesses. With a significant portion of its income being paid out as dividends, Kendrion's prospects for becoming a multi-bagger appear limited unless future investment strategies change.
- The stagnation in Kendrion's performance highlights the potential risks for investors in mature companies that may be unable to adapt to changing market conditions or reinvest profits effectively.
- What steps could Kendrion take to revitalize its growth and enhance shareholder value in an increasingly competitive industry?