Olaplex Holdings' Capital Allocation Trends Raise Concerns for Investors

Olaplex Holdings (NASDAQ:OLPX) has a ROCE of 1.0%, underperforming the Personal Products industry average of 10%. The company's ROCE has fallen from 11% over the last five years, and while it's reinvesting in its business, the returns are shrinking. The stock has crumbled 77% over the last three years, suggesting investors are expecting the worst.