Despite the high predictability of tidal energy's resource and timing, long construction times,
high capital intensity and low load factors will most likely rule out significant cost reductions in tidal technologies in the near term.
For companies with
a high capital intensity and lots of debt there a big risk that someone else will reap the benefits of the recovery after shareholders have been wiped out.
Not exact matches
Below is a sampling of industries, arranged by
highest growth and lowest
capital intensity, culled from data provided by independent research firm IBISWorld.
Combined with low
capital intensity — which means that a relatively low
capital base is required to grow the business — the result is the potential for an extremely
high return on investment.
This combination of
capital intensity, low - margins and economic sensitivity is probably why automakers trade at such low multiples and offer
high yields.
As seen below, KO has generally maintained a return on invested
capital in the teens or
higher for the past decade, which indicates a durable and consistent business with low
capital intensity (licensing brand formulas to restaurants and bottlers).
Rising costs and
high -
capital intensity of production and extraction have become entrenched across world agriculture, mining and energy sectors.