Capex on PPE = Capital Expenditure (Capex) / Property, Plant and Equipment (PPE)
This ration shows you how capital intensive a company is.
Companies with an increasing (from year to year) ratio may be moving to be more capital intensive and studies have shown that they underperform the market.
Higher Capex also means lower Free Cash Flow (Operating cash flow – Capex) generation and perhaps lower dividends as companies don’t have the cash to pay dividends if they are investing more in the business.
You can read more about all the red flag ratios in the screener here: Ignore these red flag ratios if you want lower returns