Free Cash Flow DeteriorationA dramatic drop in free cash flow undermines funding for capex, dividends, or M&A without raising external financing. Persistent FCF weakness erodes financial flexibility and can force trade-offs between growth initiatives and balance sheet repair.
EPS Growth Lagging RevenueTop-line gains not translating into proportional EPS improvement suggests margin pressure, cost inflation, dilution, or higher non-operating charges. Over the medium term, this weakens shareholder returns unless profitability per share is restored.
Thin Net Profit MarginA modest net margin provides a small buffer against rising costs or competitive price pressure. In a retail pharmacy sector with low unit margins, even moderate cost shocks or margin erosion can materially reduce net income and cash available for reinvestment.