Declining Revenue And Compressed MarginsRevenue contraction and a sharp margin decline materially weaken internal funding and profitability. Persistent margin compression undermines reinvestment capacity, diminishes pricing power versus peers, and raises the bar for operational improvements to restore sustainable returns.
Negative Free Cash Flow And Weak Cash ConversionNegative free cash flow and a 0.61 OCF-to-net-income ratio indicate earnings are not reliably converting to cash. In a capital-intensive sector this limits ability to fund maintenance/capex, pay dividends, or deleverage without external financing, raising liquidity risk.
Lower Return On EquityA falling ROE to under 7% signals reduced effectiveness in generating shareholder returns from equity. This constrains the firm's ability to attract new capital, limits retained-earnings growth, and may reflect operational or competitive weaknesses needing structural fixes.