Margins Still Below Prior PeakImproved margins are encouraging but remain under prior peaks, leaving profitability vulnerable to cost inflation, rate normalization or competitive pressure. Until margins sustainably recover, expansion of ROE and long-term free cash flow will be constrained.
Modest Return On EquityROE around 4.2% signals limited efficiency in converting equity into profits. Persistently low ROE can restrict internally funded growth, forcing reliance on higher leverage or equity issuance for expansion and potentially diluting long-term shareholder returns.
Earnings Volatility (EPS Contraction)Severe EPS decline indicates earnings volatility, likely from cyclical freight swings or one-offs. Such swings reduce predictability of profits, complicate capital allocation and budgeting, and weaken confidence in sustainable earnings improvement across the medium term.