Weak Free Cash Flow ConversionFree cash flow converts only ~32% of reported net income, implying working capital, capex or timing items absorb a large portion of profits. Lower FCF conversion limits ability to self-fund growth, pay down liabilities, or increase shareholder returns without higher operating efficiency or better working-capital management.
Declining EPS TrendA notable decline in EPS despite revenue growth suggests margin pressure, non-operational charges, or higher share count effects. Persistently negative EPS growth undermines per-share earnings power and can reflect durability issues in profit conversion that need operational fixes to restore long-term shareholder value.
OEM Concentration & Cycle ExposureRevenue depends on OEM production runs and program wins, creating structural cyclicality tied to automotive demand and platform timing. This dependence makes revenues and margins sensitive to industry cycles and client sourcing decisions, limiting predictability and requiring steady program pipeline management.