Very Low Net Profit MarginA net margin near 0.65% implies most incremental revenue is consumed by SG&A, financing or non-operating costs. Persistently thin net profitability limits retained earnings, reduces ability to self-fund growth initiatives, and raises sensitivity to modest cost or demand shocks over the medium term.
Negative Free Cash Flow And Declining OCFNegative free cash flow and falling operating cash flow constrain liquidity and capital spending flexibility. Over 2-6 months this increases reliance on external financing for capex and working capital, raising execution risk for product ramps and exposing the firm to higher financing costs if markets tighten.
Moderate Leverage And Low ROEA D/E near 1.47 with ROE ~1.07% indicates material leverage but poor returns on shareholder equity. This combination reduces financial flexibility, elevates interest burden risk, and limits capacity to pursue growth without further dilutive or debt-funded measures, weakening long-term resilience.