Low Net ProfitabilityA circa 2.3% net margin means most gross profits are consumed by operating costs, finance costs, or one-offs, limiting retained earnings and financial flexibility. Persistently thin net margins constrain the company’s ability to self-fund growth or withstand prolonged commodity pressure.
Negative Free Cash FlowNegative free cash flow driven by elevated capex reduces internal funding for debt reduction, dividends, or strategic investments. If capex remains high, reliance on external financing can increase refinancing risk and constrain shareholder returns over the medium term.
Moderate Leverage And Weak ROEA D/E of ~0.73 with ROE ~3.4% indicates the company uses leverage but generates limited returns on equity. That combination raises sensitivity to interest-rate rises and margin compression, and suggests capital is not being deployed efficiently to produce strong shareholder returns.