High Financial LeverageSignificant leverage raises refinancing and interest-rate risk and constrains strategic flexibility. High debt levels can pressure free cash flow allocation, limit ability to invest in growth, and increase vulnerability to downside scenarios over the medium term.
Negative Free Cash FlowPersistent negative free cash flow undermines the company’s ability to self-fund operations, invest, or reduce debt. Reliance on external financing or asset sales to plug cash shortfalls raises long-term funding risk and can dilute returns to shareholders.
Volatile Net Profit MarginsFluctuating net margins signal variability in earnings quality and sensitivity to cost pressures or project mix. This volatility complicates long-term forecasting, weakens investor confidence in sustainable profits, and can hinder consistent capital allocation decisions.