Free Cash Flow PressureNegative free cash flow driven by heavy capex reduces internal funding for dividends, debt reduction, or further expansion. If capex does not translate into sustained revenue/margin gains, continued negative FCF could force external financing or slow shareholder returns.
EPS ContractionA negative EPS growth rate indicates per-share profitability has declined, potentially from margin pressure, one-off costs, or dilution. Persistent EPS contraction erodes investor returns and may signal that operational improvements or pricing power need to recover to restore per-share earnings.
Operating Margin SoftnessA decline in EBIT margin, even modest, points to rising operating costs or pricing constraints. Over the medium term, continued margin erosion would pressure net profitability and cash generation unless offset by efficiency gains or a higher-margin product mix.