April 14, 2025 a 03:31 pm
GEN: Dividend Analysis - Gen Digital Inc.
Gen Digital Inc. presents a compelling case for investors with an interest in stable dividend returns and a strong market presence. The company's long-standing history of 13 years of dividend payments affirms its commitment to shareholder returns. With a current dividend yield of 1.8% and a moderate payout ratio, it offers a balanced approach of reward versus reinvestment. However, the limited dividend growth over the last five years may indicate caution in the volatile market environment.
📊 Overview
The overview provides key insights into the dividend profile of Gen Digital Inc., demonstrating its position within its sector and capacity for sustained dividend payouts.
| Metric | Value |
|---|---|
| Sector | {{sector}} |
| Dividend yield | 1.80% |
| Current dividend per share | $0.51 |
| Dividend history | 13 years |
| Last cut or suspension | None |
📉 Dividend History
Understanding dividend history is crucial as it highlights the company's commitment to returning value to shareholders and mitigating fluctuations in cash distributions over time. This stability is paramount for investors seeking dependable returns.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | $0.125 |
| 2024 | $0.500 |
| 2023 | $0.500 |
| 2022 | $0.500 |
| 2021 | $0.500 |
📈 Dividend Growth
Dividend growth analysis provides insight into how well a company can sustain dividend payments and increase payouts over time, often reflecting its financial health and strategic investments.
| Time | Growth |
|---|---|
| 3 years | 0% |
| 5 years | 7.39% |
The average dividend growth is 7.39% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Payout ratios are essential to determine how much of the company's earnings are paid out as dividends, showing the balance between income distribution to shareholders and reinvestment into operations.
| Key figure | Ratio |
|---|---|
| EPS-based | 49.19% |
| Free cash flow-based | 14.66% |
The EPS-based payout ratio is considered balanced, indicating a prudent allocation of earnings. Meanwhile, the free cash flow-based ratio being low suggests robust reinvestment to foster growth and innovation.
💹 Cashflow & Capital Efficiency
Analysis of cash flow and capital efficiency is critical for understanding a company's true financial health and operational effectiveness, ensuring the sustainability of future dividends.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 14.32% | 7.13% | 6.28% |
| Earnings Yield | 4.32% | 12.80% | 5.43% |
| CAPEX to Operating Cash Flow | 0.97% | 0.79% | 0.62% |
| Stock-based Compensation to Revenue | 3.62% | 4.01% | 2.50% |
| Free Cash Flow / Operating Cash Flow Ratio | 99.03% | 99.20% | 99.38% |
The cash flow metrics reflect a strong cash flow generation with efficient capital deployment, ensuring stability and room for strategic uses of capital. The free cash flow yield relative to operating cash flow ratio is remarkably stable, supporting ongoing dividend coverage.
🚀 Balance Sheet & Leverage Analysis
An in-depth leverage analysis is essential for assessing the Company's ability to meet its long-term obligations, effectively manage its capital structure, and assure investors of its financial sturdiness.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 3.94 | 4.46 | -41.17 |
| Debt-to-Assets | 0.55 | 0.62 | 0.55 |
| Debt-to-Capital | 0.80 | 0.82 | 1.02 |
| Net Debt to EBITDA | 4.79 | 5.82 | 1.46 |
| Current Ratio | 0.51 | 0.43 | 0.73 |
| Quick Ratio | 0.51 | 0.42 | 0.72 |
| Financial Leverage | 7.18 | 7.25 | -74.66 |
The financial leverage figures indicate high levels of leverage, demanding careful monitoring to mitigate potential risks. Despite fluctuating leverage ratios, current and quick ratios signal adequate short-term liquidity.
📈 Fundamental Strength & Profitability
Fundamental strength and profitability ratios help gauge a company's ability to generate earnings as a percentage of its revenue, assets, and equity, underpinning its dividend sustainability.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 28.04% | 61.32% | -89.89% |
| Return on Assets | 3.91% | 8.46% | 12.04% |
| Margins: Net | 16.16% | 40.41% | 29.90% |
| EBIT | 29.59% | 36.10% | 41.77% |
| EBITDA | 42.73% | 46.64% | 47.50% |
| Gross | 80.82% | 82.35% | 85.40% |
| R&D to Revenue | 8.43% | 9.38% | 9.05% |
The return on equity stands solid, suggesting strong profitability. Coupled with substantial margins, they highlight the company's effective cost management and capacity for profit reinvestment.
🗣️ Price Development
🔍 Dividend Scoring System
The following table scores Gen Digital Inc. based on multiple criteria that reflect its overall dividend and financial health.
| Criteria | Score (1-5) | Score bar |
|---|---|---|
| Dividend yield | 2 | |
| Dividend Stability | 4 | |
| Dividend growth | 3 | |
| Payout ratio | 3 | |
| Financial stability | 3 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 2 |
Total Score: 26/40
📝 Rating
Gen Digital Inc.'s dividend analysis presents a moderate investment opportunity. With a strong commitment to payout continuity and a medium-term growth trajectory, it offers a suitable choice for investors valuing reliable income. However, some financial leverage concerns and gradual dividend growth require cautious monitoring.