High Capital Expenditure IntensitySustained negative investing cash flow signals heavy capex needs; while investment can drive growth, it elevates cash conversion risk. If elevated capex persists, it may constrain free cash flow and force prioritization between growth spending, dividends, and deleveraging.
Liabilities Vs Cash Liquidity RiskAlthough leverage (D/E 0.48) and equity ratio look solid, comparatively high liabilities against cash reserves reduce short-term liquidity buffers. In an adverse cycle or if cash flows weaken, this could pressure working capital and limit strategic flexibility.
Capital Intensity Tempering Financial StrengthThe company’s strong results are partially offset by capital intensity and liability exposure. This structural mix raises execution risk: maintaining margins and cash generation must continue to cover investment needs and liabilities, or financial metrics could deteriorate.