High Profitability / MarginsSustained high gross and operating margins imply structural pricing power or efficient cost structure, which supports resilient earnings and cash flow. These margins provide room for reinvestment, dividends, and to absorb demand shocks over the next several quarters.
Conservative Balance SheetVery low leverage and a stronger equity base reduce financial risk and increase flexibility for capex, acquisitions, or dividend policy. A conservative balance sheet lowers default risk and supports long-term stability across economic cycles.
Strong Cash Generation QualityOperating cash conversion above net income and near-par free cash flow indicate earnings are high quality and largely cash-backed. Reliable cash flows support dividends, capex and deleveraging, underpinning durable shareholder returns and financial flexibility.