Weak Cash ConversionLow conversion of accounting profits into operating and free cash flow signals structural working-capital intensity and collection timing risk. Over the medium term this can constrain organic funding for new projects, increase reliance on external finance, and raise vulnerability during demand slowdowns.
Revenue VolatilityVolatile top-line reflects project-timing sensitivity and cyclical demand in real estate. Persistent swings make forecasting and capacity planning harder, can delay margin leverage from scale, and increase the chance of inventory or collection stress in weaker market cycles.
Modest Return On EquityA low ROE indicates the firm generates limited shareholder returns from deployed capital. Over time this can hinder the company’s ability to attract equity at favorable terms, pressure investor confidence, and signal the need for strategic moves to improve pricing, mix or cost efficiency.