Hamilton Beach Brands Holding's (NYSE:HBB) Returns On Capital: A Cause for Concern

As an investor, I'm always on the lookout for companies that can generate impressive returns on capital (ROCE). However, when I see a company like Hamilton Beach Brands Holding (NYSE:HBB) with a declining ROCE over the past five years, it raises a red flag. Let's dive into the reasons behind this trend and explore what it means for the company's future.

Firstly, Hamilton Beach Brands Holding has been reinvesting in the business, which has led to an increase in capital employed. However, the company's sales have not changed much in the last 12 months, suggesting that the reinvestment may not be contributing to the bottom line as expected. This is a common issue for companies that focus on reinvestment without a clear strategy for driving sales growth.