Negative Free Cash FlowPersistent negative free cash flow reduces the company’s ability to self-fund growth, dividends, or strategic projects. Over time this may necessitate external financing or cutbacks to capex, weakening the operational runway despite healthy accounting profits and a strong balance sheet.
Weak Cash Conversion From EarningsA 0.52 cash conversion ratio and declining operating cash flow indicate earnings are not fully translating into cash. This reduces financial resilience, raises working-capital strain, and increases sensitivity to cyclical stress, potentially forcing trade-offs between capex and liquidity management.
Exposure To Semiconductor Cyclicality And Tech ShiftsBusiness demand is tied to semiconductor production cycles and evolving test requirements. Structural cyclicality and periodic tech transitions can cause volatile volumes and reorder patterns, making long-term revenue visibility and capital planning more challenging for the company.