Negative Free Cash Flow From High CapexSustained negative free cash flow driven by elevated capex can erode liquidity despite strong operating cash generation. If high investment continues, it may constrain discretionary spending, require external financing, or delay free-cash-flow recovery, raising medium‑term financial risk.
Modest Return On EquityROE around 8.5% signals only modest capital returns relative to shareholders. Even with low leverage, this suggests the company still has scope to improve asset efficiency and profitability; persistent middling ROE may limit long‑term shareholder value creation versus higher‑return peers.
Operational Margins Still Have UpsideWhile gross and net margins improved, EBIT/EBITDA still indicate remaining operational inefficiencies. If management does not close this gap, margin volatility or cost pressures could limit sustainable profit expansion and constrain free cash flow improvement across the medium term.