November 05, 2025 a 03:31 am
FIS: Dividend Analysis - Fidelity National Information Services, Inc.
The analysis of Fidelity National Information Services, Inc. reveals a complex dividend profile with both challenges and opportunities. Though the dividend yield is competitive at 2.53%, the high EPS payout ratio indicates potential sustainability issues. However, the company's long-standing 23-year dividend history reflects a commitment to returning value to shareholders, despite the recent cut in 2024.
📊 Overview
Fidelity National Information Services operates within a robust sector, offering investors a dividend yield of 2.53%. The current dividend per share stands at $1.45, albeit with a recent history of reductions. Maintaining a 23-year dividend history signifies resilience, yet the cut or suspension in 2024 could reflect strategic adjustments to balance financial health and shareholder returns.
| Metric | Details |
|---|---|
| Sector | Information Technology |
| Dividend yield | 2.53% |
| Current dividend per share | $1.45 USD |
| Dividend history | 23 years |
| Last cut or suspension | 2024 |
🗣️ Dividend History
Fidelity National Information Services' dividend history reflects a typically increasing trend, signifying prudent financial management despite the cash flow variations. Recent adjustments, including a significant cut in 2024, indicate a recalibration in response to economic pressures.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 1.60 |
| 2024 | 1.44 |
| 2023 | 2.08 |
| 2022 | 1.88 |
| 2021 | 1.56 |
📈 Dividend Growth
Dividend growth analysis is crucial as it reflects the company's potential for future income generation. Over the last 3 years, Fidelity National Information Services experienced a shrinkage in dividends, contrasted by a modest 0.57% growth over 5 years.
| 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.
📉 Payout Ratio
Payout ratios are indicators of dividend sustainability. An EPS-based payout ratio of 678.12% is alarmingly high, suggesting dividends may not be sustainable without improved earnings. In contrast, a FCF-based payout ratio of 47.44% presents a more conservative measure, indicating better free cash flow coverage.
| Key Figure | Ratio |
|---|---|
| EPS-based | 678.12% |
| Free cash flow-based | 47.44% |
The high EPS payout indicates potential risks, while the FCF-based ratio provides some reassurance regarding the company's ability to sustain dividends.
✅ Cashflow & Capital Efficiency
Cash flow metrics underscore the operational efficiency and financial health of Fidelity National Information Services. Evaluating the Free Cash Flow Yield and Earnings Yield offers insight into cash generation relative to its market valuation.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 4.42% | 11.89% | 8.96% |
| Earnings Yield | 3.25% | -18.75% | -40.80% |
| CAPEX to Operating Cash Flow | 4.68% | 2.65% | 6.80% |
| Stock-based Compensation to Revenue | 1.84% | 1.22% | 1.94% |
| Free Cash Flow/Operating Cash Flow Ratio | 95.32% | 97.35% | 93.20% |
| Return on Invested Capital | 3.99% | 3.63% | 2.35% |
Strong free cash flow metrics and capital efficiency suggest robust operational performance, enabling strategic investments and shareholder returns.
⚠️ Balance Sheet & Leverage Analysis
These metrics are critical in assessing the financial resilience and risk exposure of Fidelity National Information Services. The ratios reflect leverage, asset quality, and ability to meet long-term obligations.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.74 | 1.02 | 0.75 |
| Debt-to-Assets | 34.16% | 35.18% | 32.25% |
| Debt-to-Capital | 42.37% | 50.38% | 42.85% |
| Net Debt to EBITDA | 3.16 | 6.51 | 6.94 |
| Current Ratio | 0.85 | 0.75 | 0.79 |
| Quick Ratio | 0.85 | 0.75 | 0.79 |
| Financial Leverage | 2.15 | 2.89 | 2.32 |
The moderate leverage ratios and strong quick ratio indicate balanced debt management, though some caution is advised due to recent volatility.
📊 Fundamental Strength & Profitability
Analyzing fundamental strength provides insights into operational effectiveness and profitability. These ratios highlight efficiency in resource allocation and cost management.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 9.24% | -34.93% | -61.43% |
| Return on Assets | 4.29% | -12.11% | -26.42% |
| Net Margin | 14.32% | -67.69% | -172.03% |
| EBIT Margin | 16.27% | 13.99% | 12.75% |
| EBITDA Margin | 33.43% | 29.55% | 29.58% |
| Gross Margin | 37.56% | 37.19% | 36.04% |
| Research & Development to Revenue | 0% | 0% | 0% |
The profitability metrics underscore the company's ability to generate value from its assets, although previous periods show weakness likely impacting strategic financial decisions.
📉 Price Development
🗣️ Dividend Scoring System
| Aspect | Score | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 2 | |
| Dividend growth | 2 | |
| Payout ratio | 1 | |
| Financial stability | 3 | |
| Dividend continuity | 3 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 22/40
✅ Rating
Fidelity National Information Services, Inc. offers a mixed outlook for dividend investors. While the current yield is attractive, caution is warranted given the elevated payout ratios and recent dividend cut. Prospective investors should weigh the reliability of future earnings against potential for sustained dividend growth amidst operational adjustments.