High LeverageA debt-to-equity ratio of 4.22 signals a highly leveraged capital structure that constrains strategic flexibility, raises interest expense sensitivity, and increases default risk if commodity prices or cash flows deteriorate. Significant deleveraging is required to improve resilience across cycles.
Weak ProfitabilityNegative EBIT and very low net margin indicate the company struggles to convert healthy gross margins into operating profits, pointing to elevated operating costs, inefficiencies, or non-operating losses. Persistent weak profitability limits self-funding capacity and undermines sustainable reinvestment.
Poor Cash ConversionDespite headline FCF growth, a negative FCF-to-net-income and an OCF-to-net-income ratio of 0.07 show earnings are not reliably converting to cash. This raises concerns about earnings quality, working capital swings or irregular receipts, impairing the company’s ability to consistently service debt and fund capex.