Profitability Normalization And Margin CompressionEBIT and margins have meaningfully declined versus prior years, indicating reduced operating leverage or pricing pressure. If these pressures persist, the company may struggle to convert revenue growth into proportional earnings and cash flow, weakening long‑term profitability.
Volatile Cash ConversionInconsistent FCF and a history of a major cash outflow raise execution and working‑capital risks. Variable cash conversion impairs ability to self‑fund capex, smooth R&D investment, or increase returns to shareholders, making growth more dependent on precise timing of cash flows.
Declining EPS TrendNegative EPS growth despite revenue gains points to margin erosion, higher costs, or non‑operating drains that are reducing per‑share earnings. A sustained decline in EPS undermines reinvestment capacity and shareholder returns and signals weaker underlying earnings power.