VIRTU FINANCIAL INC-CLASS A (VIRT) Stock Fundamental Analysis
NASDAQ:VIRT - Nasdaq - US9282541013 - Common Stock - Currency: USD
VIRT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 227 industry peers in the Capital Markets industry. VIRT has a medium profitability rating, but doesn't score so well on its financial health evaluation. VIRT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
VIRT had positive earnings in the past year.
In the past year VIRT had a positive cash flow from operations.
VIRT had positive earnings in each of the past 5 years.
VIRT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of VIRT (1.70%) is worse than 60.35% of its industry peers.
VIRT has a better Return On Equity (20.76%) than 88.99% of its industry peers.
VIRT has a Return On Invested Capital of 3.98%. This is comparable to the rest of the industry: VIRT outperforms 51.10% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VIRT is below the industry average of 7.06%.
The 3 year average ROIC (3.63%) for VIRT is below the current ROIC(3.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.7% | ||
| ROE | 20.76% | ||
| ROIC | 3.98% |
ROA(3y)1.68%
ROA(5y)3.17%
ROE(3y)16.97%
ROE(5y)24.76%
ROIC(3y)3.63%
ROIC(5y)6.8%
1.3 Margins
VIRT has a worse Profit Margin (9.05%) than 63.88% of its industry peers.
VIRT's Profit Margin has declined in the last couple of years.
VIRT has a Operating Margin (22.98%) which is in line with its industry peers.
VIRT's Operating Margin has declined in the last couple of years.
The Gross Margin of VIRT (53.74%) is better than 63.44% of its industry peers.
In the last couple of years the Gross Margin of VIRT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.98% | ||
| PM (TTM) | 9.05% | ||
| GM | 53.74% |
OM growth 3Y-14.26%
OM growth 5YN/A
PM growth 3Y-18.1%
PM growth 5YN/A
GM growth 3Y-6.35%
GM growth 5Y0.8%
2. Health
2.1 Basic Checks
VIRT has less shares outstanding than it did 1 year ago.
The number of shares outstanding for VIRT has been reduced compared to 5 years ago.
Compared to 1 year ago, VIRT has a worse debt to assets ratio.
2.2 Solvency
VIRT has an Altman-Z score of 0.11. This is a bad value and indicates that VIRT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.11, VIRT is doing worse than 74.89% of the companies in the same industry.
VIRT has a debt to FCF ratio of 21.93. This is a negative value and a sign of low solvency as VIRT would need 21.93 years to pay back of all of its debts.
VIRT's Debt to FCF ratio of 21.93 is in line compared to the rest of the industry. VIRT outperforms 48.02% of its industry peers.
VIRT has a Debt/Equity ratio of 9.53. This is a high value indicating a heavy dependency on external financing.
VIRT has a worse Debt to Equity ratio (9.53) than 88.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.53 | ||
| Debt/FCF | 21.93 | ||
| Altman-Z | 0.11 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 0.22 indicates that VIRT may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.22, VIRT is doing worse than 87.67% of the companies in the same industry.
VIRT has a Quick Ratio of 0.22. 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 worse Quick ratio (0.22) than 87.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.22 | ||
| Quick Ratio | 0.22 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 93.99% over the past year.
The Earnings Per Share has been growing by 29.36% on average over the past years. This is a very strong growth
The Revenue has grown by 25.44% in the past year. This is a very strong growth!
The Revenue has been growing by 13.65% on average over the past years. This is quite good.
EPS 1Y (TTM)93.99%
EPS 3Y-8.01%
EPS 5Y29.36%
EPS Q2Q%322.22%
Revenue 1Y (TTM)25.44%
Revenue growth 3Y0.77%
Revenue growth 5Y13.65%
Sales Q2Q%104.05%
3.2 Future
Based on estimates for the next years, VIRT will show a small growth in Earnings Per Share. The EPS will grow by 7.06% on average per year.
Based on estimates for the next years, VIRT will show a small growth in Revenue. The Revenue will grow by 4.72% on average per year.
EPS Next Y8.22%
EPS Next 2Y5.81%
EPS Next 3Y7.06%
EPS Next 5YN/A
Revenue Next Year10.6%
Revenue Next 2Y6.31%
Revenue Next 3Y4.72%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.83, the valuation of VIRT can be described as reasonable.
VIRT's Price/Earnings ratio is a bit cheaper when compared to the industry. VIRT is cheaper than 64.32% 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 28.29.
Based on the Price/Forward Earnings ratio of 10.01, the valuation of VIRT can be described as reasonable.
63.88% of the companies in the same industry are more expensive than VIRT, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.08. VIRT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.83 | ||
| Fwd PE | 10.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VIRT is valued cheaply inside the industry as 82.38% of the companies are valued more expensively.
VIRT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. VIRT is cheaper than 70.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.94 | ||
| EV/EBITDA | 11.94 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.32
PEG (5Y)0.37
EPS Next 2Y5.81%
EPS Next 3Y7.06%
5. Dividend
5.1 Amount
VIRT has a Yearly Dividend Yield of 2.50%.
Compared to an average industry Dividend Yield of 8.84, VIRT is paying slightly less dividend.
VIRT's Dividend Yield is comparable with the S&P500 average which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
5.2 History
The dividend of VIRT decreases each year by -12.43%.
VIRT has paid a dividend for at least 10 years, which is 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)-12.43%
Div Incr Years0
Div Non Decr Years9
5.3 Sustainability
34.20% of the earnings are spent on dividend by VIRT. This is a low number and sustainable payout ratio.
DP34.2%
EPS Next 2Y5.81%
EPS Next 3Y7.06%
38.46
+0.66 (+1.75%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners89.44%
Inst Owner Change0%
Ins Owners0.73%
Ins Owner Change0.59%
Market Cap5.96B
Analysts78.67
Price Target43.73 (13.7%)
Short Float %3.37%
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
Yearly Dividend0.57
Dividend Growth(5Y)-12.43%
DP34.2%
Div Incr Years0
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.34%
Min EPS beat(2)1.69%
Max EPS beat(2)24.99%
EPS beat(4)4
Avg EPS beat(4)25.72%
Min EPS beat(4)1.69%
Max EPS beat(4)41.27%
EPS beat(8)6
Avg EPS beat(8)12.41%
EPS beat(12)9
Avg EPS beat(12)6.84%
EPS beat(16)12
Avg EPS beat(16)11.28%
Revenue beat(2)2
Avg Revenue beat(2)23.55%
Min Revenue beat(2)15.76%
Max Revenue beat(2)31.34%
Revenue beat(4)4
Avg Revenue beat(4)24.68%
Min Revenue beat(4)15.76%
Max Revenue beat(4)31.34%
Revenue beat(8)7
Avg Revenue beat(8)24.01%
Revenue beat(12)11
Avg Revenue beat(12)36.19%
Revenue beat(16)15
Avg Revenue beat(16)45.56%
PT rev (1m)0%
PT rev (3m)22.11%
EPS NQ rev (1m)12.68%
EPS NQ rev (3m)41.17%
EPS NY rev (1m)0.58%
EPS NY rev (3m)18.94%
Revenue NQ rev (1m)5.03%
Revenue NQ rev (3m)18.54%
Revenue NY rev (1m)0.93%
Revenue NY rev (3m)8.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.83 | ||
| Fwd PE | 10.01 | ||
| P/S | 2.07 | ||
| P/FCF | 10.94 | ||
| P/OCF | 9.95 | ||
| P/B | 4.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.94 |
EPS(TTM)3.55
EY9.23%
EPS(NY)3.84
Fwd EY9.99%
FCF(TTM)3.52
FCFY9.14%
OCF(TTM)3.87
OCFY10.05%
SpS18.57
BVpS8.1
TBVpS-0.63
PEG (NY)1.32
PEG (5Y)0.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.7% | ||
| ROE | 20.76% | ||
| ROCE | 11.24% | ||
| ROIC | 3.98% | ||
| ROICexc | 4.25% | ||
| ROICexgc | 4.91% | ||
| OM | 22.98% | ||
| PM (TTM) | 9.05% | ||
| GM | 53.74% | ||
| FCFM | 18.93% |
ROA(3y)1.68%
ROA(5y)3.17%
ROE(3y)16.97%
ROE(5y)24.76%
ROIC(3y)3.63%
ROIC(5y)6.8%
ROICexc(3y)3.96%
ROICexc(5y)7.57%
ROICexgc(3y)4.76%
ROICexgc(5y)9.77%
ROCE(3y)9.96%
ROCE(5y)15.88%
ROICexcg growth 3Y-29.04%
ROICexcg growth 5YN/A
ROICexc growth 3Y-26.21%
ROICexc growth 5YN/A
OM growth 3Y-14.26%
OM growth 5YN/A
PM growth 3Y-18.1%
PM growth 5YN/A
GM growth 3Y-6.35%
GM growth 5Y0.8%
F-Score8
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.53 | ||
| Debt/FCF | 21.93 | ||
| Debt/EBITDA | 15.37 | ||
| Cap/Depr | 46.71% | ||
| Cap/Sales | 1.89% | ||
| Interest Coverage | 1.13 | ||
| Cash Conversion | 77.04% | ||
| Profit Quality | 209.18% | ||
| Current Ratio | 0.22 | ||
| Quick Ratio | 0.22 | ||
| Altman-Z | 0.11 |
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)52%
Cap/Depr(5y)48.51%
Cap/Sales(3y)2.65%
Cap/Sales(5y)2.39%
Profit Quality(3y)257.05%
Profit Quality(5y)233.9%
High Growth Momentum
Growth
EPS 1Y (TTM)93.99%
EPS 3Y-8.01%
EPS 5Y29.36%
EPS Q2Q%322.22%
EPS Next Y8.22%
EPS Next 2Y5.81%
EPS Next 3Y7.06%
EPS Next 5YN/A
Revenue 1Y (TTM)25.44%
Revenue growth 3Y0.77%
Revenue growth 5Y13.65%
Sales Q2Q%104.05%
Revenue Next Year10.6%
Revenue Next 2Y6.31%
Revenue Next 3Y4.72%
Revenue Next 5YN/A
EBIT growth 1Y102.99%
EBIT growth 3Y-13.6%
EBIT growth 5YN/A
EBIT Next Year33.65%
EBIT Next 3Y9.34%
EBIT Next 5YN/A
FCF growth 1Y31.04%
FCF growth 3Y-21.16%
FCF growth 5Y37.46%
OCF growth 1Y21.8%
OCF growth 3Y-20.04%
OCF growth 5Y28.83%