Persistent Negative FCFRepeatedly negative free cash flow and weak cash conversion indicate earnings are not being converted to self‑funding cash. This reliance on external funding or asset sales constrains capital allocation, limits cushion for shocks, and raises execution risk for new project investments.
Margin ErosionMaterial decline in gross and persistently thin net margins point to pricing pressure, rising input or execution costs, or lower product mix profitability. Lower margins reduce returns on capital and leave less buffer against commodity or supply‑chain cost increases over the medium term.
Capital Intensity & Large Asset BaseA very large asset base relative to equity and historically meaningful leverage highlight capital intensity and balance‑sheet exposure. This structure limits ROE upside, elevates refinancing and working‑capital risk, and can amplify cyclical swings in project pipelines and cash needs.