VIRTU FINANCIAL INC-CLASS A (VIRT)
US9282541013 - Common Stock
We assign a fundamental rating of 4 out of 10 to VIRT. VIRT was compared to 218 industry peers in the Capital Markets industry. VIRT may be in some trouble as it scores bad on both profitability and health. VIRT may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year VIRT was profitable.
In the past year VIRT had a positive cash flow from operations.
VIRT had positive earnings in 4 of the past 5 years.
In the past 5 years VIRT always reported a positive cash flow from operatings.
1.2 Ratios
VIRT has a worse Return On Assets (1.22%) than 65.12% of its industry peers.
Looking at the Return On Equity, with a value of 14.31%, VIRT is in the better half of the industry, outperforming 72.56% of the companies in the same industry.
The Return On Invested Capital of VIRT (2.92%) is worse than 64.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VIRT is significantly below the industry average of 17.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.22% | ||
| ROE | 14.31% | ||
| ROIC | 2.92% |
ROA(3y)2.61%
ROA(5y)2.71%
ROE(3y)20.02%
ROE(5y)19.31%
ROIC(3y)5.46%
ROIC(5y)N/A
1.3 Margins
VIRT's Profit Margin of 6.84% is on the low side compared to the rest of the industry. VIRT is outperformed by 68.37% of its industry peers.
In the last couple of years the Profit Margin of VIRT has declined.
Looking at the Operating Margin, with a value of 17.81%, VIRT is doing worse than 61.86% of the companies in the same industry.
VIRT's Operating Margin has declined in the last couple of years.
VIRT has a Gross Margin (51.37%) which is in line with its industry peers.
VIRT's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.81% | ||
| PM (TTM) | 6.84% | ||
| GM | 51.37% |
OM growth 3Y-30.88%
OM growth 5Y-18.01%
PM growth 3Y-33.11%
PM growth 5Y-17.33%
GM growth 3Y-9.4%
GM growth 5Y-6.37%
2. Health
2.1 Basic Checks
Compared to 1 year ago, VIRT has less shares outstanding
Compared to 5 years ago, VIRT has less shares outstanding
The debt/assets ratio for VIRT is higher compared to a year ago.
2.2 Solvency
VIRT has an Altman-Z score of 0.05. This is a bad value and indicates that VIRT is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of VIRT (0.05) is worse than 77.67% of its industry peers.
VIRT has a debt to FCF ratio of 23.30. This is a negative value and a sign of low solvency as VIRT would need 23.30 years to pay back of all of its debts.
With a Debt to FCF ratio value of 23.30, VIRT perfoms like the industry average, outperforming 45.12% of the companies in the same industry.
A Debt/Equity ratio of 9.24 is on the high side and indicates that VIRT has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 9.24, VIRT is doing worse than 90.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.24 | ||
| Debt/FCF | 23.3 | ||
| Altman-Z | 0.05 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
VIRT has a Current Ratio of 0.23. This is a bad value and indicates that VIRT is not financially healthy enough and could expect problems in meeting its short term obligations.
VIRT's Current ratio of 0.23 is on the low side compared to the rest of the industry. VIRT is outperformed by 86.05% of its industry peers.
VIRT has a Quick Ratio of 0.23. This is a bad value and indicates that VIRT is not financially healthy enough and could expect problems in meeting its short term obligations.
VIRT has a Quick ratio of 0.23. This is amonst the worse of the industry: VIRT underperforms 86.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
VIRT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.86%, which is quite impressive.
VIRT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.36% yearly.
The Revenue has grown by 14.34% in the past year. This is quite good.
VIRT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.07% yearly.
EPS 1Y (TTM)38.86%
EPS 3Y-31.8%
EPS 5Y-1.36%
EPS Q2Q%82.22%
Revenue 1Y (TTM)14.34%
Revenue growth 3Y-10.87%
Revenue growth 5Y4.07%
Sales Q2Q%123.62%
3.2 Future
VIRT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.02% yearly.
VIRT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.62% yearly.
EPS Next Y77.28%
EPS Next 2Y31.47%
EPS Next 3Y22.02%
EPS Next 5YN/A
Revenue Next Year22.05%
Revenue Next 2Y11.23%
Revenue Next 3Y8.62%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.71 indicates a reasonable valuation of VIRT.
Based on the Price/Earnings ratio, VIRT is valued a bit cheaper than 65.12% of the companies in the same industry.
VIRT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 30.20.
With a Price/Forward Earnings ratio of 9.92, the valuation of VIRT can be described as very reasonable.
66.51% of the companies in the same industry are more expensive than VIRT, based on the Price/Forward Earnings ratio.
VIRT is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.28, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.71 | ||
| Fwd PE | 9.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VIRT is valued a bit cheaper than 78.60% of the companies in the same industry.
68.84% of the companies in the same industry are more expensive than VIRT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.1 | ||
| EV/EBITDA | 14.06 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as VIRT's earnings are expected to grow with 22.02% in the coming years.
PEG (NY)0.15
PEG (5Y)N/A
EPS Next 2Y31.47%
EPS Next 3Y22.02%
5. Dividend
5.1 Amount
VIRT has a Yearly Dividend Yield of 3.10%.
VIRT's Dividend Yield is comparable with the industry average which is at 8.73.
Compared to an average S&P500 Dividend Yield of 2.26, VIRT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
5.2 History
The dividend of VIRT decreases each year by -18.61%.
VIRT has been paying a dividend for at least 10 years, so it has a reliable track record.
VIRT has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)-18.61%
Div Incr Years0
Div Non Decr Years8
5.3 Sustainability
51.01% of the earnings are spent on dividend by VIRT. This is a bit on the high side, but may be sustainable.
DP51.01%
EPS Next 2Y31.47%
EPS Next 3Y22.02%
VIRTU FINANCIAL INC-CLASS A
NASDAQ:VIRT (11/4/2024, 8:00:02 PM)
After market: 31.39 0 (0%)31.39
-0.17 (-0.54%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.93B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.1% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.71 | ||
| Fwd PE | 9.92 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.15
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.22% | ||
| ROE | 14.31% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.81% | ||
| PM (TTM) | 6.84% | ||
| GM | 51.37% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.24 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.23 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)38.86%
EPS 3Y-31.8%
EPS 5Y
EPS Q2Q%
EPS Next Y77.28%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.34%
Revenue growth 3Y-10.87%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y