High LeverageDebt materially exceeding equity limits financial flexibility and heightens solvency risk if earnings weaken. With thin operating margins the interest and principal burden can rapidly erode profits, constrain strategic investments, and increase probability of distress or dilutive financing in adverse scenarios.
2025 Cash Flow DeteriorationA sharp swing to deeply negative free cash flow indicates working-capital stress or higher reinvestment needs, undermining liquidity. Negative FCF forces reliance on external funding or asset sales, increasing execution risk and reducing sustainable capacity for capex, dividends, or debt reduction.
Thin Operating MarginsVery low operating and net margins leave little room to absorb cost inflation or revenue setbacks. Structural competitiveness or cost base issues mean small adverse shifts translate to disproportionate earnings volatility, making profit stability and cash conversion more fragile over the medium term.