High LeverageA D/E of 2.6 materially raises refinancing and interest-rate risk, reducing flexibility to fund projects or weather downturns. Over a multi-month horizon high leverage can strain cash flow, limit capital allocation choices, and heighten default vulnerability if cash conversion weakens.
Poor Cash ConversionVery low cash conversion means reported profits translate poorly into usable cash, constraining ability to invest, pay dividends, or service debt. Structurally weak cash generation undermines the durability of growth, especially with high leverage and capex needs in renewables.
Declining EPS TrendNegative EPS growth despite revenue gains signals margin pressure, higher costs, or non-operating drains. Persisting EPS declines can erode retained earnings and investor confidence, making it harder to secure partner financing or sustain dividends over the medium term.