Thin Net ProfitabilityA ~1.3% net margin provides a thin buffer against cost inflation or demand softness, making earnings fragile. Combined with a history of loss years, this undermines the predictability of long-term profitability and limits retained earnings for growth or dividends.
Uneven Cash Flow QualityYear-to-year swings in operating and free cash flow, and FCF covering only ~70% of net income in 2025, imply earnings are not consistently cash-backed. This complicates capital allocation, makes funding capex/dividends less reliable, and raises execution risk over months to years.
Low Returns On CapitalROE near 3.6% and prior negative years indicate limited ability to generate attractive shareholder returns from existing capital. Persistently low returns suggest structural competitiveness or pricing limits, constraining long-term shareholder value creation absent structural change.