Operating Cash Flow WeaknessDeclining operating cash flow signals weakening cash conversion from core operations and can constrain working capital funding for payroll and receivables. Even with positive FCF, persistent OCF decline risks limiting investment and increases reliance on balance sheet buffers.
Low Net Profit MarginA sub-2% net margin provides a thin earnings cushion against cost shocks or price pressure. This low profitability limits retained earnings for reinvestment, increases sensitivity to wage or regulatory cost increases, and could hamper long-term capital accumulation.
Negative EPS GrowthA large negative EPS change indicates earnings volatility or material one-off impacts, which reduces predictability of shareholder returns. Persistent EPS declines complicate planning, may limit dividend growth capacity, and can signal underlying margin or cost issues.