Weak Cash ConversionEarnings are not translating into cash, indicating working capital or collection issues and volatile free cash flow. Weak cash conversion constrains funding for capex, debt reduction, or dividends, increasing reliance on external financing and limiting strategic flexibility over the next several quarters.
Low Net Profit MarginsThin net margins leave minimal buffer against cost inflation, project overruns, or pricing pressure inherent to construction. Low profitability heightens volatility in shareholder returns and makes sustained investment or debt service more sensitive to small revenue or cost swings.
Limited Equity BufferA sub-30% equity ratio implies a modest capital buffer versus liabilities. In conjunction with cash flow volatility and moderate leverage, this limited equity cushion raises vulnerability to downturns and could restrict the company's ability to pursue larger projects or absorb unexpected losses.