Very Low Net MarginA 1.8% net margin leaves little room for reinvestment or shock absorption; most revenue gains translate weakly to the bottom line. Persistently low net profitability constrains retained earnings, limits capacity to fund growth internally, and reduces long-term shareholder return potential.
Weak Cash GenerationDeclining operating cash flow and negative free cash flow growth point to persistent cash conversion issues. Poor cash generation restricts capex and debt repayment flexibility, may force external financing, and elevates liquidity risk across the medium term if not remedied.
Margins Below Industry PeersEven with margin improvement, EBIT/EBITDA trailing industry averages indicates a competitive cost or efficiency gap. Structural underperformance versus peers limits pricing power and investment capacity, making it harder to sustainably improve returns without operational change.