DSW Capital plc's (LON:DSW) Stock's Been Going Strong: Could Weak Financials Mean The Market Will Correct Its Share Price?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 11 2025
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Should l Buy ?
Source: Yahoo Finance
DSW Capital's Financial Performance: DSW Capital has seen a significant stock increase of 18% over the past three months, but its low Return on Equity (ROE) of 3.4% and a substantial decline in net income by 51% over five years indicate weak fundamentals compared to the industry average ROE of 12%.
Dividend Payout Concerns: The company's high payout ratio of 236% suggests it is unsustainably distributing profits as dividends, leading to shrinking earnings; however, future expectations indicate a reduction in the payout ratio to 43% over the next three years.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
