Negative Free Cash FlowPersistently negative FCF driven by large capex reduces liquidity and long-term financial flexibility. If high investment continues, the company may need external funding, which could raise costs or constrain dividends and strategic options over a multi-quarter horizon.
Low EBITDA MarginA sub-12% EBITDA margin indicates limited operating leverage and exposes earnings to input cost volatility. Without structural efficiency gains or higher-value products, margin pressure can persist and limit internal cash available for growth or cushioning against cyclical downturns.
Rising Total LiabilitiesAn uptick in total liabilities, even from a low D/E base, can erode the company's conservative balance-sheet strength over time. Continued liability growth may increase interest and covenant risk, reducing capacity to finance strategic investments on favorable terms.