DSW Capital plc's (LON:DSW) Stock's Been Going Strong: Could Weak Financials Mean The Market Will Correct Its Share Price?

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.