VIRTU FINANCIAL INC-CLASS A (VIRT)
US9282541013 - Common Stock
Overall VIRT gets a fundamental rating of 4 out of 10. We evaluated VIRT against 220 industry peers in the Capital Markets industry. Both the profitability and financial health of VIRT have multiple concerns. VIRT has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year VIRT was profitable.
VIRT had a positive operating cash flow in the past year.
Of the past 5 years VIRT 4 years were profitable.
VIRT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of VIRT (1.22%) is worse than 64.98% of its industry peers.
VIRT has a better Return On Equity (14.31%) than 75.12% of its industry peers.
The Return On Invested Capital of VIRT (2.92%) is worse than 64.52% of its industry peers.
VIRT had an Average Return On Invested Capital over the past 3 years of 5.46%. This is in line with the industry average of 7.00%.
| 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 has a Profit Margin of 6.84%. This is in the lower half of the industry: VIRT underperforms 66.36% of its industry peers.
VIRT's Profit Margin has declined in the last couple of years.
The Operating Margin of VIRT (17.81%) is worse than 62.67% of its industry peers.
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.
In the last couple of years the Gross Margin of VIRT has declined.
| 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
The number of shares outstanding for VIRT has been reduced compared to 1 year ago.
Compared to 5 years ago, VIRT has less shares outstanding
Compared to 1 year ago, VIRT has a worse debt to assets ratio.
2.2 Solvency
VIRT has an Altman-Z score of 0.06. This is a bad value and indicates that VIRT is not financially healthy and even has some risk of bankruptcy.
VIRT has a worse Altman-Z score (0.06) than 76.50% of its industry peers.
The Debt to FCF ratio of VIRT is 23.30, which is on the high side as it means it would take VIRT, 23.30 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 23.30, VIRT is in line with its industry, outperforming 47.47% 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.
With a Debt to Equity ratio value of 9.24, VIRT is not doing good in the industry: 90.32% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.24 | ||
| Debt/FCF | 23.3 | ||
| Altman-Z | 0.06 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.23 indicates that VIRT may have some problems paying its short term obligations.
The Current ratio of VIRT (0.23) is worse than 82.49% of its industry peers.
A Quick Ratio of 0.23 indicates that VIRT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.23, VIRT is doing worse than 82.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 38.86% over the past year.
Measured over the past years, VIRT shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.36% on average per year.
VIRT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.34%.
The Revenue has been growing slightly by 4.07% on average over the past years.
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
Based on estimates for the next years, VIRT will show a very strong growth in Earnings Per Share. The EPS will grow by 22.02% on average per year.
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 Year22.76%
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
The Price/Earnings ratio is 13.21, which indicates a correct valuation of VIRT.
VIRT's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.73, VIRT is valued rather cheaply.
A Price/Forward Earnings ratio of 11.19 indicates a reasonable valuation of VIRT.
62.67% 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 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.21 | ||
| Fwd PE | 11.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VIRT is valued a bit cheaper than 76.50% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VIRT is valued a bit cheaper than 68.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.2 | ||
| EV/EBITDA | 14.72 |
4.3 Compensation for Growth
VIRT's 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)0.17
PEG (5Y)N/A
EPS Next 2Y31.47%
EPS Next 3Y22.02%
5. Dividend
5.1 Amount
VIRT has a Yearly Dividend Yield of 2.61%.
VIRT's Dividend Yield is comparable with the industry average which is at 9.13.
VIRT's Dividend Yield is comparable with the S&P500 average which is at 2.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
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.
As VIRT did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)-18.61%
Div Incr Years0
Div Non Decr Years9
5.3 Sustainability
VIRT pays out 51.01% of its income as dividend. 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 (12/20/2024, 8:00:01 PM)
After market: 35.41 0 (0%)35.41
+0.85 (+2.46%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners47.89%
Inst Owner Change-4.12%
Ins Owners16.87%
Ins Owner Change0.18%
Market Cap5.48B
Analysts78.67
Price Target33.89 (-4.29%)
Short Float %2.96%
Short Ratio2.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
Dividend Growth(5Y)-18.61%
DP51.01%
Div Incr Years0
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.31%
Min EPS beat(2)1.69%
Max EPS beat(2)34.92%
EPS beat(4)3
Avg EPS beat(4)10.72%
Min EPS beat(4)-35%
Max EPS beat(4)41.27%
EPS beat(8)5
Avg EPS beat(8)5.45%
EPS beat(12)9
Avg EPS beat(12)8.55%
EPS beat(16)12
Avg EPS beat(16)12.27%
Revenue beat(2)2
Avg Revenue beat(2)55.18%
Min Revenue beat(2)26.08%
Max Revenue beat(2)84.28%
Revenue beat(4)3
Avg Revenue beat(4)31.78%
Min Revenue beat(4)-8.79%
Max Revenue beat(4)84.28%
Revenue beat(8)7
Avg Revenue beat(8)36.82%
Revenue beat(12)11
Avg Revenue beat(12)46.65%
Revenue beat(16)15
Avg Revenue beat(16)52.88%
PT rev (1m)2.62%
PT rev (3m)12.14%
EPS NQ rev (1m)0.58%
EPS NQ rev (3m)40.56%
EPS NY rev (1m)0%
EPS NY rev (3m)4.27%
Revenue NQ rev (1m)0.87%
Revenue NQ rev (3m)17.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.21 | ||
| Fwd PE | 11.19 | ||
| P/S | 2.12 | ||
| P/FCF | 11.2 | ||
| P/OCF | 9.85 | ||
| P/B | 4.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.72 |
EPS(TTM)2.68
EY7.57%
EPS(NY)3.16
Fwd EY8.93%
FCF(TTM)3.16
FCFY8.92%
OCF(TTM)3.59
OCFY10.15%
SpS16.68
BVpS7.97
TBVpS-0.85
PEG (NY)0.17
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.22% | ||
| ROE | 14.31% | ||
| ROCE | 8.36% | ||
| ROIC | 2.92% | ||
| ROICexc | 3.09% | ||
| ROICexgc | 3.58% | ||
| OM | 17.81% | ||
| PM (TTM) | 6.84% | ||
| GM | 51.37% | ||
| FCFM | 18.95% |
ROA(3y)2.61%
ROA(5y)2.71%
ROE(3y)20.02%
ROE(5y)19.31%
ROIC(3y)5.46%
ROIC(5y)N/A
ROICexc(3y)6.11%
ROICexc(5y)N/A
ROICexgc(3y)7.76%
ROICexgc(5y)N/A
ROCE(3y)13.14%
ROCE(5y)N/A
ROICexcg growth 3Y-49.65%
ROICexcg growth 5Y-26.99%
ROICexc growth 3Y-47.19%
ROICexc growth 5Y-25.96%
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%
F-Score7
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.24 | ||
| Debt/FCF | 23.3 | ||
| Debt/EBITDA | 19.67 | ||
| Cap/Depr | 56.02% | ||
| Cap/Sales | 2.6% | ||
| Interest Coverage | 0.67 | ||
| Cash Conversion | 95.98% | ||
| Profit Quality | 277.12% | ||
| Current Ratio | 0.23 | ||
| Quick Ratio | 0.23 | ||
| Altman-Z | 0.06 |
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)51%
Cap/Depr(5y)47.65%
Cap/Sales(3y)2.73%
Cap/Sales(5y)2.78%
Profit Quality(3y)267.31%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)38.86%
EPS 3Y-31.8%
EPS 5Y-1.36%
EPS Q2Q%82.22%
EPS Next Y77.28%
EPS Next 2Y31.47%
EPS Next 3Y22.02%
EPS Next 5YN/A
Revenue 1Y (TTM)14.34%
Revenue growth 3Y-10.87%
Revenue growth 5Y4.07%
Sales Q2Q%123.62%
Revenue Next Year22.76%
Revenue Next 2Y11.23%
Revenue Next 3Y8.62%
Revenue Next 5YN/A
EBIT growth 1Y29.87%
EBIT growth 3Y-38.39%
EBIT growth 5Y-14.67%
EBIT Next Year85.59%
EBIT Next 3Y20.56%
EBIT Next 5YN/A
FCF growth 1Y-52.3%
FCF growth 3Y-25.38%
FCF growth 5Y-9.02%
OCF growth 1Y-48.92%
OCF growth 3Y-22.61%
OCF growth 5Y-7.2%