Uneven Revenue GrowthIrregular top-line performance signals dependence on lumpy contract timing or cyclical demand, complicating long-term forecasting and scaling. Without steadier revenue growth, margin gains may be harder to translate into sustained EPS expansion and strategic investments.
Volatile Cash FlowsIntermittent drops in free cash flow create uncertainty around available funds for dividends, buybacks, or reinvestment. This volatility can force defensive capital allocation in weak years, reducing the predictability of shareholder returns and hampering multi-year planning.
Moderate, Non-accelerating ROEROE in the low double digits reflects decent profitability but limited upside absent faster growth or more aggressive capital deployment. A conservative balance sheet supports stability but may constrain return amplification for shareholders over the medium term if capital is underutilized.