Persistent Negative Free Cash FlowNegative free cash flow, despite strong operating cash, suggests high capex, expansions, or working capital build that erode liquidity. Persisting FCF deficits can force dependence on debt or equity raises, constrain dividends, and limit flexibility to pursue opportunistic investments over the medium term.
Moderate Leverage And Low Equity RatioA D/E of 1.32 and equity ratio below 35% indicate material reliance on liabilities. In a higher-rate environment or operational setback, leverage magnifies refinancing and interest risks, reducing balance-sheet resilience and potentially limiting strategic options during economic stress over the next several quarters.
Low Net Profit MarginA 3.8% net margin constrains retained earnings and sensitivity to input cost increases or pricing pressure. Even with strong revenue growth, thin margins limit free cash generation and leave less buffer to invest in automation, pricing competitiveness, or service expansion without undermining profitability over the medium term.