Negative Free Cash Flow From CapexPersistent negative free cash flow driven by sizeable capital expenditures erodes near-term liquidity and reduces optionality. High capex for capacity expansion delays cash conversion; until new assets reach steady utilization, cash strain could limit returns, dividends, or defensive buffers.
Recent EPS ContractionA steep EPS decline (~-63%) signals meaningful earnings volatility and weaker bottom-line performance recently. Such contraction can reflect transitional costs, utilization shortfalls, or margin pressures, increasing execution risk and extending the timeline for durable ROE and shareholder return recovery.
Margin Sensitivity & Customer TransparencyProfitability hinges on the spread between PET feedstock costs and recycled product prices, exposing margins to feedstock price swings and polyester cycles. The absence of disclosed customer concentration or contract terms raises revenue stability risk if a few buyers represent material sales.