Moderate Net MarginsModerate net margins imply material costs below gross profit (SG&A, financing, taxes) are eroding final profitability. Over the medium term this limits retained earnings and the ability to self-fund expansion or withstand revenue shocks, making returns sensitive to expense control and interest costs.
Remaining Leverage RiskAlthough leverage has improved, a still-elevated debt position keeps the firm exposed to rising rates and cyclical demand drops. Persistent leverage constrains strategic optionality, increases interest expense vulnerability and raises the probability that operating stress could erode equity over months.
Declining EPSA significant year-over-year EPS decline signals pressure on per-share profitability, which may reflect margin pressure, higher interest or one-off items. If sustained, reduced EPS weakens ability to invest, pay dividends or absorb shocks, and can constrain capital strategy over the medium term.