High LeverageA relatively high debt-to-equity ratio and dependency on external financing reduce financial flexibility and increase interest cost sensitivity. Over a 2-6 month horizon rising rates or weaker operating cash flow could tighten liquidity and constrain capital allocation or bidding for larger projects.
Weak, Volatile Operating Cash FlowNegative recent operating cash flow and poor free-cash-flow conversion indicate difficulty turning accounting profits into spendable cash. This structural cash conversion issue forces reliance on financing, raising execution risk for capex, debt servicing, and dividends if receipts remain uneven.
Cyclical Industry ExposureOperating in the cyclical real estate and construction sector exposes revenues and margins to macro and housing cycles. Combined with leverage, downturns can quickly pressure profitability and cash flow, reducing backlog and increasing credit strain over the medium term.