Negative Free Cash FlowNegative free cash flow driven by higher capex constrains self‑funding of growth, dividends, or debt reduction. If capex intensity persists, the company may need external financing or must improve cash conversion, increasing long‑term financing and execution risk.
Earnings VolatilitySharp EPS decline and inconsistent ROE reflect volatility in profitability and sensitivity to cyclical inputs or one‑off items. This reduces predictability of earnings and cash flow, complicating capital allocation, long‑term planning and credibility with stakeholders.
Low Operating (EBIT) MarginRelatively low EBIT margin limits the firm's ability to absorb raw‑material or energy cost shocks and constrains free cash generation. Sustained margin pressure would undermine return on invested capital unless the company achieves structural efficiency gains or product mix upgrades.