Free Cash Flow DeclineA >60% drop in free cash flow growth is a durable operational cash concern: even with solid reported profits, weakening FCF constrains capital allocation, limits reinvestment or dividends, and may force financing or slowed strategic execution if the trend persists.
Modest Return On EquityROE under 10% signals only moderate efficiency in converting equity into returns. With a conservative capital structure, improving shareholder returns may require either faster profit growth or higher leverage, both of which are non-trivial strategic shifts and present long-term trade-offs.
Small Scale And Outsourcing RelianceA small headcount and reliance on outsourced manufacturing can limit control over costs, quality and capacity. Scaling export and industrial contracts may be constrained by third-party partners and supply-chain risk, creating a structural growth and margin vulnerability.