May 01, 2025 a 12:46 pm
FIS: Dividend Analysis - Fidelity National Information Services, Inc.
Fidelity National Information Services, Inc. (FIS) is a prominent player in the financial technology sector. With a robust market capitalization and a significant presence in the industry, FIS exhibits a promising dividend profile. As we delve into the company's financial metrics, a comprehensive analysis of its dividend yield, growth, and payout ratios will be provided, offering potential and current investors a clear understanding of its dividend sustainability and growth prospects in the ever-evolving market.
📊 Overview
The industrial standing of Fidelity National Information Services, Inc. places it within the financial technology sector, offering a current dividend yield of approximately 2.17%. The company has a current dividend of 1.446 USD per share, with a comprehensive dividend history spanning 23 years. Notably, the company has not reported any recent cuts or suspensions in its dividend distribution.
| Sectors & Metrics | Details |
|---|---|
| Sector | Financial Technology |
| Dividend Yield | 2.17% |
| Current Dividend per Share | 1.446 USD |
| Dividend History | 23 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
Examining the historical dividend performance of FIS provides insights into its commitment to rewarding shareholders. A consistent dividend history often aligns with the stability and profitability of a company, influencing investor confidence.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.40 |
| 2024 | 1.44 |
| 2023 | 2.08 |
| 2022 | 1.88 |
| 2021 | 1.56 |
📈 Dividend Growth
The growth of dividends is a key indicator of wealth generation and financial health for stakeholders. FIS has demonstrated a 3-year dividend growth decline of approximately -2.63% and a 5-year nominal growth of approximately 0.57%. Such metrics emphasize the need to evaluate financial policies and market collaborations.
| Time Period | Growth |
|---|---|
| 3 Years | -2.63% |
| 5 Years | 0.57% |
The average dividend growth over the last 5 years is 0.57%, reflecting moderate growth with potential for gradual improvement.
⚠️ Payout Ratio
Payout ratios provide insight into the sustainability of dividends, reflecting the portion of earnings distributed to shareholders. FIS's EPS-based payout ratio stands at 50.61%, paired with a free cash flow payout ratio of 49.99%, suggesting a balanced approach to earnings distribution without compromising financial reserves.
| Key Figure | Ratio |
|---|---|
| EPS-based | 50.61% |
| Free Cash Flow-based | 49.99% |
The payout ratios indicate a moderate level of distribution, providing ample room for reinvestment and growth.
✅ Cashflow & Capital Efficiency
Effective cashflow management and capital utilization are earmarks of a company's operational viability and profitability. The following metrics, encompassing cash flow yields and CAPEX ratios, are vital to assessing FIS's financial agility and commitment to shareholder value.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 3.04% | 9.05% | 6.22% |
| Earnings Yield | 2.09% | -18.74% | -40.80% |
| CAPEX to Operating Cash Flow | 37.56% | 25.88% | 35.29% |
| Stock-based Compensation to Revenue | 1.84% | 1.57% | 2.21% |
| Free Cash Flow / Operating Cash Flow Ratio | 62.44% | 74.12% | 64.71% |
The cashflow indicators reflect a capacity for efficient capital deployment, with consistent profitability and investment capabilities.
📉 Balance Sheet & Leverage Analysis
Assessment of the balance sheet offers insights into FIS's capital structure, leverage, and financial resilience. These metrics help gauge the company's long-term sustainability and risk exposure.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 295.92% | 101.30% | 74.98% |
| Debt-to-Assets | 34.16% | 35.00% | 32.25% |
| Debt-to-Capital | 99.66% | 50.32% | 42.85% |
| Net Debt to EBITDA | 6.27 | 6.50 | 6.94 |
| Current Ratio | 0.18 | 0.75 | 0.79 |
| Quick Ratio | 0.18 | 0.77 | 0.79 |
| Financial Leverage | 866.25% | 288.61% | 232.49% |
Though demonstrating high leverage in 2024, the company has portrayed a historically prudent balance between leverage and operational efficiency.
🔍 Fundamental Strength & Profitability
FIS's profitability and fundamental strengths are epitomized through its margins and returns metrics. These indicators help understand how effectively the company is generating profits relative to its revenue and capital investments.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 23.97% | -34.85% | -61.43% |
| Return on Assets | 2.77% | -12.08% | -26.42% |
| Margins - Net | 9.23% | -67.75% | -172.03% |
| EBIT Margin | 16.27% | 14.01% | 12.75% |
| EBITDA Margin | 16.88% | 29.59% | 29.58% |
| Gross Margin | 37.56% | 37.42% | 36.04% |
| Research & Development to Revenue | 0% | 0% | 0% |
The data indicates mixed profitability with certain potential in net margins for 2024; however, challenges exist in aligning newly strategized operational goals with revenue generation.
🚀 Price Development
🧮 Dividend Scoring System
| Criterion | Score | Score Bar |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 4 | |
| Dividend Growth | 2 | |
| Payout Ratio | 3 | |
| Financial Stability | 3 | |
| Dividend Continuity | 4 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 2 |
Total Score: 24/40
💼 Rating
While Fidelity National Information Services, Inc. demonstrates a moderate dividend yield and stability, certain weak points in growth and balance sheet quality must be addressed for an enhanced shareholder value proposition. Although the company shows potential in its financial technology sector, prudent management of financial ratios and strategic growth initiatives are recommended to propel future success and solidify investor confidence.