Volatile Free Cash FlowInconsistent free cash flow complicates capital allocation: it limits predictable dividend funding, debt reduction and cyclical capex planning. Even with recent improvements, volatility reduces the reliability of internal funding and forces reliance on external financing or tighter liquidity management in downturns.
Modest Net Profit MarginsRelatively modest net margins constrain the company's ability to absorb sustained input-cost increases, invest aggressively in growth, or rapidly deleverage. Over a multi-month horizon, limited margin headroom could slow profitability improvements unless matched by continued operational gains or favorable pricing dynamics.
Exposure To Raw Material Price SwingsThe business model's reliance on steel and raw material inputs creates structural margin vulnerability to commodity volatility. Without durable long-term supply contracts or hedging, input cost spikes can compress margins and working capital needs, creating sustained profit and cashflow pressure across industry cycles.