Cash Flow VolatilityVolatile cash flows can challenge financial planning and stability, potentially limiting the company's ability to consistently invest in growth or return capital to shareholders.
Cyclical RevenueCyclical revenue patterns can lead to unpredictable earnings and cash flow, complicating long-term strategic planning and potentially affecting investor confidence.
Moderate ReturnsWhile returns are stable, moderate returns on equity may indicate limited efficiency in generating profits from shareholders' investments, potentially impacting growth prospects.