Negative Free Cash FlowPersistent negative free cash flow, even if improving, suggests that capex, working capital, or other outflows exceed operating cash generation. Over months this constrains capacity to deleverage, fund growth initiatives internally, or raise capital without diluting stakeholders or stretching liquidity.
Declining Operating MarginsEroding EBIT/EBITDA margins point to rising input costs, pricing pressure, or lower operational efficiency. If sustained, margin compression will limit earnings leverage from revenue growth, hinder ROIC improvement, and reduce internal funding for strategic investments over the medium term.
Modest Profitability MetricsROE near 6.1% and a net margin around 3.2% indicate limited profitability returns relative to capital employed. Structurally modest returns constrain ability to generate excess capital, lower buffer against downturns, and make it harder to raise investment without improving operational efficiency or pricing.