Volatile Free Cash FlowSignificant swings in free cash flow suggest capex timing or working capital variability, which can constrain reinvestment, deleverage efforts, or shareholder returns. Persistent FCF volatility reduces predictability of internally funded growth and strategic flexibility.
Inconsistent Net Profit MarginsErratic net margins imply earnings volatility driven by mix, one-offs, or cost variability. This undermines earnings predictability, complicates long-term planning and guidance, and may necessitate external financing during downturns or before new projects reach steady state.
Moderately Low EBITDA MarginA relatively modest EBITDA margin limits the internal cushion to absorb input cost inflation and fund growth. Lower operational cash conversion makes the company more reliant on execution improvements or external capital to expand capacity or invest in higher‑value technologies.