Ferrotec's modest net income growth and efficient use of profits are seen as positive, despite not having a high ROE. The recent decision to pay dividends may be to impress shareholders.

Market expectations of the company outperforming the industry may explain its high P/S ratio. However, its slower-than-industry revenue growth and high P/S ratio pose a significant risk of share price decrease. Unless recent medium-term conditions improve significantly, the current share price may be unreasonable.

Ferrotec's returns dropped from 15% to 5.4% over four years, which isn't a promising trend. Despite reinvestment for growth and debt reduction, the stock's prospects of high returns are doubtful if the trend continues.

Ferrotec's high reinvestment rate and increasing earnings hint at a promising business, despite a low ROE. Evaluating potential risks associated remains vital for informed decisions.