Semiconductor CyclicalityThe company's end markets are highly cyclical, which creates structural volatility in revenue and earnings. Even with strong margins, demand swings can force capacity adjustments, shift booking patterns, and pressure utilization, making multi‑year planning and stable margin delivery more challenging.
Volatile Cash ConversionWhile TTM conversion is strong, historical swings in operating cash and FCF during downcycles show working capital sensitivity. This variability can constrain investment or force external funding in troughs, reducing predictability of free cash flow for capital allocation and shareholder returns.
Rising Debt Vs Earlier YearsAn upward trend in absolute debt, despite low leverage ratios today, reduces future financial optionality if a deeper downturn occurs. Incremental leverage raises refinancing and interest risks, potentially limiting funding for R&D or capex when cyclical weakness requires sustained investment or working capital support.