August 15, 2025 a 07:31 am
📊 FIS: Dividend Analysis - Fidelity National Information Services, Inc.
Fidelity National Information Services, Inc. (FIS) offers a substantial dividend yield that is moderately attractive for income-driven investors. With a history of 23 years of dividend payments, FIS showcases resilience in its dividend strategy. However, investors should be cautious of recent negative growth and high payout ratios affecting long-term sustainability.
Overview 🗣️
| Sector | Dividend Yield | Current Dividend Per Share | Dividend History | Last Cut/Suspension |
|---|---|---|---|---|
| Information Technology Services | 2.18% | 1.45 USD | 23 years | None |
Dividend History 📈
The dividend history of FIS highlights its commitment to returning value to shareholders, maintaining a record of consistent payouts for 23 years, underscoring financial stability and investor confidence. Monitoring historical dividends assists in evaluating payout reliability and growth trends.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 1.20 |
| 2024 | 1.44 |
| 2023 | 2.08 |
| 2022 | 1.88 |
| 2021 | 1.56 |
Dividend Growth 📈
Analyzing dividend growth is imperative for assessing the future payout potential. The negative growth of -2.63% over the past 3 years and a modest increase of 0.57% over 5 years reflect irregular performance, raising concerns regarding consistent enhancement.
| Time | Growth |
|---|---|
| 3 years | -2.63% |
| 5 years | 0.57% |
The average dividend growth is 0.57% over 5 years. This shows moderate but steady dividend growth, indicating limited increase over the period.
Payout Ratio 📉
Evaluating payout ratios allows insight into the portion of earnings and cash flows dedicated to dividends, guiding sustainability analysis. FIS’s EPS-based payout ratio at an unsustainable 106.82%, coupled with a more stable free cash flow-based payout ratio of 43.08%, presents a mixed outlook.
| Key Figure | Ratio |
|---|---|
| EPS-based | 106.82% |
| Free cash flow-based | 43.08% |
The EPS-based payout ratio exceeding 100% signals potential unsustainability, whereby the free cash flow ratio remains within safer boundries at 43.08%.
Cashflow & Capital Efficiency 💵
Assessing cashflow stability and capital efficiency provides insights into a company's ability to generate sufficient cash and use capital prudently. With a free cash flow to operating cash flow ratio of 62.44% in the recent period, there's moderate stability, while stock-based compensation to revenue of about 1.89% suggests balanced cost management.
| Metrics | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 3.04% | 9.05% | 6.22% |
| Earnings Yield | 3.25% | -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% |
While the cash flow metrics indicate some degree of efficiency and cash management, fluctuating yields present a challenge for consistent capital deployment returns.
Balance Sheet & Leverage Analysis 📊
Analyzing leverage metrics and balance sheet strength provides clarity on a company’s financial resilience. In recent years, FIS has shown increasing leverage ratios, suggesting heightened financial risk due to elevated debt levels relative to equity.
| Metrics | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.74 | 1.01 | 0.75 |
| Debt-to-Assets | 0.34 | 0.35 | 0.32 |
| Debt-to-Capital | 0.42 | 0.50 | 0.43 |
| Net Debt to EBITDA | 1.13 | 6.50 | 6.94 |
| Current Ratio | 0.85 | 0.75 | 0.79 |
| Quick Ratio | 0.85 | 0.77 | 0.79 |
| Financial Leverage | 2.15 | 2.89 | 2.32 |
Elevated debt levels and leveraged financials highlight potential concerns over financial stability and necessitate cautious surveillance of future debt management.
Fundamental Strength & Profitability 📈
Evaluating profitability metrics and fundamental strength is integral for understanding operational effectiveness and return potential. FIS exhibits suboptimal profitability with negative ROE and ROI in recent periods, warranting strategic actions for improvement.
| Metrics | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 9.24% | -34.85% | -61.43% |
| Return on Assets | 4.29% | -12.08% | -26.42% |
| Net Margin | 14.32% | -67.75% | -172.03% |
| EBIT Margin | 16.27% | 14.01% | 12.75% |
| EBITDA Margin | 33.43% | 29.59% | 29.58% |
| Gross Margin | 37.56% | 37.43% | 36.04% |
| Research & Development to Revenue | 0% | 0% | 0% |
The profitability metrics indicate a struggling period requiring strategic enhancements in operating efficiencies and revenue generation structures moving forward.
Price Development 📉
Dividend Scoring System ✅
| Criterion | Score | Indicator |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 4 | |
| Dividend Growth | 1 | |
| Payout Ratio | 2 | |
| Financial Stability | 2 | |
| Dividend Continuity | 4 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 2 |
Overall Score: 21/40
Rating ⚠️
Fidelity National Information Services, Inc. presents a mixed dividend investment opportunity. While it maintains a long-standing dividend history and adequate yield, recent negative growth and leverage concerns impose significant risks. Therefore, FIS is recommended for cautious dividend investors emphasizing stability over aggressive growth aspects.