Source: Wikimedia
Why We Chose SMRT For Analysis?
It is delisted, so this can’t and won’t be a stock recommendation, but just an analysis of the business.
But, this is just an example.
Take note more of the characteristics listed instead of the company itself.

SMRT FY2019 Results
SMRT has been privatised by Temasek Holdings since 2016, but they still publish their earning results on their website.
Source: SMRT

Why Not To Invest?

1. High Capital Expenditure
Trains, buses, and cabs; they are expensive.
SMRT needs to buy these assets in order to run its business.
It then needs to invest consistently to maintain these assets at operational capacity.
High capital expenditure (CapEx) means less money (free cash flow) for investors.

Let’s compare 2 companies, 1 with low CapEx and 1 with high CapEx.
For every $100 each company retains as profit, it needs to set aside a portion of the money to replace its assets some