Modest Net Profit MarginA net margin of ~6.3% remains modest for capital-intensive electrical equipment, limiting retained earnings and the buffer against margin pressure. Sustained low margins can constrain internal funding for R&D and capex and reduce flexibility to absorb input-cost inflation or competitive pricing shocks.
Recent Cash-Flow Recovery RiskThough FCF is now positive, the recent prior negative free cash flow indicates historical cash-generation volatility. If working capital or capex needs rise, the company could face renewed cash strain; sustaining positive FCF is critical to fund dividends, debt reduction, and growth without external financing.
High Business Volatility (Beta)A beta near 1.9 implies elevated sensitivity to economic cycles and market swings, signaling more volatile earnings and cash flows. Structural earnings variability can complicate long-term planning, increase refinancing risk in downturns, and raise the cost of capital for durable investments.