High LeverageElevated leverage raises interest and refinancing risk, constraining strategic flexibility and increasing vulnerability to revenue hiccups. Over a multi-month horizon, high debt levels can pressure margins and limit discretionary spending, making capital structure management a key ongoing risk.
Weak Operating Cash FlowPersistent negative operating and free cash flows indicate the business struggles to convert profits into cash, forcing reliance on financing. This undermines self-funded growth and increases exposure to credit market conditions, a structural constraint on sustainable investment and dividend policies.
Declining EPS TrendNegative EPS growth suggests profit per share is under pressure, potentially from cost volatility, interest burden or operational inefficiencies. Over a 2–6 month horizon this trend can signal challenges in margin sustainability and reduced capacity to improve shareholder returns without addressing underlying drivers.