Negative Free Cash FlowPersistently negative free cash flow, driven by sizeable capex, reduces financial flexibility and increases reliance on external funding. Over a 2–6 month horizon this can constrain working capital, limit discretionary investment, and amplify refinancing or liquidity risk if operating cash conversion slips.
Rising LeverageA debt/equity ratio near 1.05 indicates materially higher leverage versus lower‑debt peers, raising interest expense and refinancing vulnerability. Elevated leverage constrains strategic flexibility, increases downside risk during demand slowdowns, and may force conservative capital allocation decisions.
Earnings Volatility / EPS WeaknessA negative EPS growth rate and historical revenue fluctuations suggest earnings are uneven despite recent top‑line gains. This volatility undermines forecasting accuracy and capital planning, leaving the firm exposed to cyclical export demand and making sustained margin improvement less certain.