Low Return On EquityA modest ROE despite a strong equity base indicates the company is underutilizing capital to deliver shareholder returns. If persistent, this suggests limited capital efficiency or low-margin projects, which could restrain long-term per-share earnings growth unless capital allocation improves.
Weak Free Cash ConversionAlthough FCF grew, only 30% conversion of net income to free cash flow signals potential working capital or capex drag. Poor cash conversion can limit funding for dividends, buybacks, or expansion, forcing reliance on slower internal accumulation or external financing for strategic investments.
Intermittent Net Income PressureA year-over-year net income decline, even if slight, raises concerns about earnings stability given otherwise growing revenue. This may reflect margin erosion, one-off charges, or cost pass-through limits, reducing predictability of long-term profitability and complicating multi-year planning.