Foamit's profitability margins have been impacted by various costs, but the most significant factor appears to be the company's exposure to market risks and fluctuations in public investments. The cyclical nature of the construction sector and the uncertainty surrounding international politics have resulted in increased costs and volatility in demand for Foamit's products and services. Additionally, the company's reliance on a diverse customer base has led to concerns about credit losses and payment delays, further eroding profitability margins. Furthermore, Foamit's investments in tangible assets have been substantial, which may indicate that the company is struggling to manage its capital expenditures effectively. Overall, it seems that Foamit's profitability margins are being squeezed by a combination of external market risks and internal operational challenges.
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