Free Cash Flow WeaknessA shift to negative free cash flow is a durable concern: it limits internal funding for investment and dividends and may force reliance on external capital. If sustained, negative FCF can erode financial flexibility and raise the cost of growth initiatives over time.
Cash Conversion ChallengesPersistent weakness in cash conversion signals earnings quality and working capital issues. Even with reported profits, poor conversion increases liquidity risk, can elevate short-term financing needs, and undermines the sustainability of reported net income over the medium term.
Earnings Growth PressureNegative EPS growth indicates pressure on bottom-line performance that could reflect margin headwinds, project mix, or cost increases. Continued EPS decline would constrain retained earnings, reduce ROE improvement prospects, and limit internal funding for strategic initiatives.