Negative Free Cash FlowNegative free cash flow is a structural concern: it constrains the company's ability to fund capex, expand logistics, pay dividends, or deleverage without external financing. Persistent negative FCF over several quarters would force tradeoffs between growth investments and liquidity preservation.
Declining Net ProfitabilityA sharp drop in net margin indicates pressure from costs, pricing or mix shifts and reduces retained earnings for reinvestment. Lower operating margins weaken ROE and make long‑term margin recovery harder, requiring structural fixes to cost base or pricing power to restore profitability.
Severe EPS DeteriorationVery large negative EPS growth signals earnings volatility or one‑off losses that impair investor returns and internal reinvestment capacity. Persistent EPS erosion undermines confidence in sustainable profits and complicates long‑term planning for dividends, capex and strategic initiatives.