Moderate Leverage ExposureAlthough leverage is manageable today, a D/E near 0.84 means the company depends materially on debt funding. Rising interest rates or weaker cash flows could constrain capital allocation, increase financing costs, and reduce strategic flexibility for expansions or acquisitions over the medium term.
Modest Net Margin LevelA sub‑10% net margin, while improved, leaves relatively limited buffers against cost inflation or reimbursement pressure. This margin profile constrains the pace at which retained earnings can fund growth and increases sensitivity of profitability to adverse operational shocks over the next several quarters.
Concentrated Referral ModelA referral‑based specialist model requires capitalized facilities and skilled clinicians, which can slow geographic scaling and raise fixed costs per site. Dependency on specialist staffing and facility investment may limit rapid network expansion and margin expansion over the medium term.