Latest news with #LeonteqAG
Bloomberg
27-03-2025
- Business
- Bloomberg
Leonteq Shareholders Back Bigger Dividend After Share Slump
Leonteq AG shareholders backed a proposal by Raiffeisen Switzerland for the ailing fintech to pay out a bigger dividend, pushing it to return more cash after a slump in its share price. Raiffeisen, which owns about 30% of the company, wanted 3 Swiss francs ($3.39) a share, more than 10 times what Leonteq proposed. At a meeting in Zurich on Thursday, 69% of shareholders voted in favor.
Yahoo
27-03-2025
- Business
- Yahoo
Leonteq's (VTX:LEON) Dividend Is Being Reduced To CHF0.25
Leonteq AG's (VTX:LEON) dividend is being reduced from last year's payment covering the same period to CHF0.25 on the 2nd of April. This means that the dividend yield is 1.4%, which is a bit low when comparing to other companies in the industry. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Even a low dividend yield can be attractive if it is sustained for years on end. The last dividend made up quite a large portion of free cash flows, and this was made worse by the lack of free cash flows. We think that this practice can make the dividend quite risky in the future. Looking forward, earnings per share is forecast to rise exponentially over the next year. If the dividend continues along recent trends, we estimate the payout ratio will be 6.5%, which would make us comfortable with the dividend's sustainability, despite the levels currently being elevated. See our latest analysis for Leonteq The company's dividend history has been marked by instability, with at least one cut in the last 10 years. The annual payment during the last 10 years was CHF1.50 in 2015, and the most recent fiscal year payment was CHF0.25. This works out to a decline of approximately 83% over that time. A company that decreases its dividend over time generally isn't what we are looking for. Dividends have been going in the wrong direction, so we definitely want to see a different trend in the earnings per share. Over the past five years, it looks as though Leonteq's EPS has declined at around 37% a year. Such rapid declines definitely have the potential to constrain dividend payments if the trend continues into the future. It's not all bad news though, as the earnings are predicted to rise over the next 12 months - we would just be a bit cautious until this becomes a long term trend. Overall, it's not great to see that the dividend has been cut, but this might be explained by the payments being a bit high previously. The payments are bit high to be considered sustainable, and the track record isn't the best. Overall, we don't think this company has the makings of a good income stock. It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For example, we've identified 4 warning signs for Leonteq (1 can't be ignored!) that you should be aware of before investing. Is Leonteq not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
12-02-2025
- Business
- Yahoo
Analysts Just Shaved Their Leonteq AG (VTX:LEON) Forecasts Dramatically
One thing we could say about the analysts on Leonteq AG (VTX:LEON) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business. After the downgrade, the two analysts covering Leonteq are now predicting revenues of CHF258m in 2025. If met, this would reflect a notable 8.6% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 366% to CHF1.56. Before this latest update, the analysts had been forecasting revenues of CHF289m and earnings per share (EPS) of CHF2.57 in 2025. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a pretty serious decline to earnings per share numbers as well. View our latest analysis for Leonteq It'll come as no surprise then, to learn that the analysts have cut their price target 19% to CHF17.00. Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing stands out from these estimates, which is that Leonteq is forecast to grow faster in the future than it has in the past, with revenues expected to display 8.6% annualised growth until the end of 2025. If achieved, this would be a much better result than the 0.05% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 5.5% per year. Not only are Leonteq's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry. The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Leonteq. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Leonteq. After a downgrade like this, it's pretty clear that previous forecasts were too optimistic. What's more, we've spotted several possible issues with Leonteq's business, like its declining profit margins. For more information, you can click here to discover this and the 3 other risks we've identified. Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
