Negative Free Cash FlowPersistent negative free cash flow points to high capital intensity and cash absorption by growth projects. Over months this limits liquidity buffer, increases dependence on external funding, and can constrain the company’s ability to self-fund expansion or weather project delays without raising costlier capital.
Low Net Profit MarginDespite strong top-line growth and solid operating margins, a low net margin indicates elevated non‑operating costs, tax, or interest burdens that erode shareholder returns. This reduces retained earnings available for capex or dividends and can limit long-term return on equity expansion.
Capex Reliance And External FinancingHigh capex requirements and reliance on external financing raise structural funding risk. If capital markets tighten or borrowing costs rise, project execution, margin maintenance, and strategic investments could be impaired, increasing execution risk and potential dilution over the medium term.