It’s potentially a gross misallocation of capital.

Right now, the 5 and 10 year US treasury rates are 4.2% and 4.47%. The 30 year is 4.99%.

A business with a return on invested capital less than that is in fact operating at a loss. Unless there is reason to believe the situation will change in the near-to-mid future, such a business would literally be better off liquidating everything and just investing in treasuries.

You would need access to internal data to figure out their ROIC, but a 3% margin is not promising.