High LeverageA debt-to-equity ratio near 3x leaves the company highly sensitive to interest rate shifts and funding availability. Persistently elevated leverage constrains financial flexibility, raises refinancing risk during downturns, and amplifies earnings volatility despite recent improvements.
Weak Cash Conversion And VolatilityOperating cash flow converted only a small fraction of reported earnings in 2025, and prior years had negative free cash flow. This volatility weakens the link between profits and cash, limiting reliable ability to service debt, sustain payouts, or fund capital needs long term.
Margins Below Prior PeakStable but subdued margins relative to historical peaks suggest weaker structural pricing power or higher cost base. Persistently lower margins reduce reinvestment capacity and earnings cushion, making the business less resilient to competitive pressure or cyclical downturns.