Revenue DeclineA falling top line signals weakening demand or pricing pressure in a commoditized paper market. Persistent revenue declines can erode scale economics, limit margin expansion, and reduce internal funds for strategic investment, constraining growth prospects over the medium term.
Free Cash Flow ContractionA sharp drop in free cash flow reduces internal funding for capex, debt reduction and shareholder returns. Declining FCF weakens financial flexibility, increases reliance on reserves or external financing for investments, and raises execution risk for strategic initiatives in the coming months.
Modest Returns & EPS DropMaterial EPS contraction alongside a modest ROE signals limited ability to generate high returns on shareholders' capital. Over time, subdued ROE and falling EPS constrain retained-earnings-driven growth and can make it harder to fund expansion or attract new equity without improving profitability.