Persistent Negative Operating Cash FlowNegative operating and free cash flow across multiple years signals the company does not self-fund core operations. This creates ongoing reliance on financing, asset sales, or equity infusions, raising execution and liquidity risk and weakening the sustainability of reported accounting profits.
Operating Profitability Still NegativeNegative EBIT/EBITDA indicate core operations are not yet consistently profitable and that net income improvements may reflect one-offs, financing or accounting items. Without durable operating profitability, long-term margin recovery and free cash generation remain uncertain.
Weak Returns On Equity HistoricallyPersistently weak ROE suggests the asset base has struggled to generate acceptable shareholder returns. Low historical returns limit reinvestment returns and increase sensitivity to capital allocation mistakes, constraining the company’s ability to compound value over time.