High Financial LeverageA debt-to-equity ratio near 3.8 materially raises financial risk and interest-service pressure. Elevated leverage constrains strategic flexibility, increases refinancing and covenant risk during stress, and can divert cash flow from operations or capex to debt servicing over the medium term.
Negative Free Cash Flow From Heavy CapexDespite positive operating cash flow, recurring negative free cash flow driven by sizeable capex limits the company’s ability to deleverage, return cash to shareholders, or self-fund growth. Continued capex-funded expansion may necessitate external financing, increasing funding risk.
Declining EPS Growth RateNegative EPS growth signals pressure on per-share profitability, which can reflect dilution, margin compression, or investment-related costs. Persistent EPS decline reduces shareholder return prospects and can amplify concerns around capital allocation and long-term earnings quality.