Volatile Free Cash FlowVolatile free cash flow reduces predictability of available funds for growth, dividends, or debt repayment. Structural FCF swings can force reliance on external financing for capital-intensive periods, constrain strategic investment pacing, and raise funding costs over the medium term.
Net Margin VariabilityFluctuating net margins imply inconsistent cost control or exposure to variable non-operating items. This increases earnings volatility and complicates forecasting free cash flow, impairing planning for reinvestment, dividends, and long-term operating improvements.
Limited Market Liquidity / ScaleLow trading volume signals limited public liquidity and comparatively smaller market scale, which can raise transaction costs and hinder equity raises. Structurally, smaller scale can reduce bargaining power with manufacturers and suppliers, constraining margin expansion opportunities.