VIRTUS INVESTMENT PARTNERS (VRTS) Stock Fundamental Analysis
NYSE:VRTS - New York Stock Exchange, Inc. - US92828Q1094 - Common Stock - Currency: USD
Taking everything into account, VRTS scores 5 out of 10 in our fundamental rating. VRTS was compared to 233 industry peers in the Capital Markets industry. Both the profitability and the financial health of VRTS get a neutral evaluation. Nothing too spectacular is happening here. VRTS is not valued too expensively and it also shows a decent growth rate. Finally VRTS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
VRTS had positive earnings in the past year.
In the past year VRTS had a positive cash flow from operations.
Each year in the past 5 years VRTS has been profitable.
Of the past 5 years VRTS 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of VRTS (3.27%) is comparable to the rest of the industry.
VRTS's Return On Equity of 13.49% is fine compared to the rest of the industry. VRTS outperforms 73.39% of its industry peers.
VRTS's Return On Invested Capital of 3.88% is in line compared to the rest of the industry. VRTS outperforms 48.93% of its industry peers.
VRTS had an Average Return On Invested Capital over the past 3 years of 3.76%. This is below the industry average of 7.84%.
The 3 year average ROIC (3.76%) for VRTS is below the current ROIC(3.88%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.27% | ||
| ROE | 13.49% | ||
| ROIC | 3.88% |
ROA(3y)3.19%
ROA(5y)3.43%
ROE(3y)14.36%
ROE(5y)15.89%
ROIC(3y)3.76%
ROIC(5y)4.34%
1.3 Margins
VRTS has a Profit Margin (13.35%) which is in line with its industry peers.
In the last couple of years the Profit Margin of VRTS has declined.
VRTS has a Operating Margin (20.14%) which is in line with its industry peers.
In the last couple of years the Operating Margin of VRTS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.14% | ||
| PM (TTM) | 13.35% | ||
| GM | N/A |
OM growth 3Y-17.09%
OM growth 5Y-2.7%
PM growth 3Y-14.2%
PM growth 5Y-2.84%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The number of shares outstanding for VRTS has been reduced compared to 1 year ago.
The number of shares outstanding for VRTS has been increased compared to 5 years ago.
Compared to 1 year ago, VRTS has a worse debt to assets ratio.
2.2 Solvency
VRTS has an Altman-Z score of 0.87. This is a bad value and indicates that VRTS is not financially healthy and even has some risk of bankruptcy.
VRTS has a Altman-Z score (0.87) which is comparable to the rest of the industry.
VRTS has a debt to FCF ratio of 87.76. This is a negative value and a sign of low solvency as VRTS would need 87.76 years to pay back of all of its debts.
VRTS has a Debt to FCF ratio (87.76) which is comparable to the rest of the industry.
A Debt/Equity ratio of 2.54 is on the high side and indicates that VRTS has dependencies on debt financing.
VRTS has a worse Debt to Equity ratio (2.54) than 81.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.54 | ||
| Debt/FCF | 87.76 | ||
| Altman-Z | 0.87 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 2.05 indicates that VRTS has no problem at all paying its short term obligations.
VRTS has a Current ratio of 2.05. This is in the better half of the industry: VRTS outperforms 69.10% of its industry peers.
A Quick Ratio of 2.05 indicates that VRTS has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.05, VRTS is doing good in the industry, outperforming 69.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.05 | ||
| Quick Ratio | 2.05 |
3. Growth
3.1 Past
VRTS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.20%, which is quite good.
The Earnings Per Share has been growing by 12.37% on average over the past years. This is quite good.
VRTS shows a small growth in Revenue. In the last year, the Revenue has grown by 3.84%.
Measured over the past years, VRTS shows a quite strong growth in Revenue. The Revenue has been growing by 10.00% on average per year.
EPS 1Y (TTM)15.2%
EPS 3Y-9.8%
EPS 5Y12.37%
EPS Q2Q%5.91%
Revenue 1Y (TTM)3.84%
Revenue growth 3Y-2.52%
Revenue growth 5Y10%
Sales Q2Q%-1.31%
3.2 Future
The Earnings Per Share is expected to grow by 2.14% on average over the next years.
Based on estimates for the next years, VRTS will show a decrease in Revenue. The Revenue will decrease by -2.45% on average per year.
EPS Next Y-4%
EPS Next 2Y-0.63%
EPS Next 3Y2.14%
EPS Next 5YN/A
Revenue Next Year-7.27%
Revenue Next 2Y-4%
Revenue Next 3Y-2.45%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.46, which indicates a rather cheap valuation of VRTS.
VRTS's Price/Earnings ratio is rather cheap when compared to the industry. VRTS is cheaper than 87.12% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.45. VRTS is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.65, which indicates a rather cheap valuation of VRTS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VRTS indicates a rather cheap valuation: VRTS is cheaper than 89.27% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. VRTS is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.46 | ||
| Fwd PE | 7.65 |
4.2 Price Multiples
81.55% of the companies in the same industry are more expensive than VRTS, based on the Enterprise Value to EBITDA ratio.
VRTS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.21 | ||
| EV/EBITDA | 14.1 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.6
EPS Next 2Y-0.63%
EPS Next 3Y2.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.52%, VRTS is a good candidate for dividend investing.
VRTS's Dividend Yield is comparable with the industry average which is at 8.00.
Compared to an average S&P500 Dividend Yield of 2.42, VRTS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
5.2 History
On average, the dividend of VRTS grows each year by 17.66%, which is quite nice.
VRTS has paid a dividend for at least 10 years, which is a reliable track record.
VRTS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)17.66%
Div Incr Years7
Div Non Decr Years10
5.3 Sustainability
VRTS pays out 50.06% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of VRTS is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP50.06%
EPS Next 2Y-0.63%
EPS Next 3Y2.14%
199.1
-1.61 (-0.8%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners83.57%
Inst Owner Change1.04%
Ins Owners6.15%
Ins Owner Change3.05%
Market Cap1.38B
Analysts46.67
Price Target171.87 (-13.68%)
Short Float %1.67%
Short Ratio1.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
Yearly Dividend8.27
Dividend Growth(5Y)17.66%
DP50.06%
Div Incr Years7
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.4%
Min EPS beat(2)-1%
Max EPS beat(2)3.8%
EPS beat(4)1
Avg EPS beat(4)-0.12%
Min EPS beat(4)-3.1%
Max EPS beat(4)3.8%
EPS beat(8)2
Avg EPS beat(8)-1.59%
EPS beat(12)4
Avg EPS beat(12)-1.43%
EPS beat(16)6
Avg EPS beat(16)-0.52%
Revenue beat(2)0
Avg Revenue beat(2)-2.88%
Min Revenue beat(2)-3.81%
Max Revenue beat(2)-1.95%
Revenue beat(4)0
Avg Revenue beat(4)-3.08%
Min Revenue beat(4)-3.81%
Max Revenue beat(4)-1.95%
Revenue beat(8)0
Avg Revenue beat(8)-3.65%
Revenue beat(12)3
Avg Revenue beat(12)0.58%
Revenue beat(16)7
Avg Revenue beat(16)3.89%
PT rev (1m)0%
PT rev (3m)-22.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.09%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.46 | ||
| Fwd PE | 7.65 | ||
| P/S | 1.52 | ||
| P/FCF | 53.21 | ||
| P/OCF | 42.34 | ||
| P/B | 1.54 | ||
| P/tB | 10.48 | ||
| EV/EBITDA | 14.1 |
EPS(TTM)26.68
EY13.4%
EPS(NY)26.03
Fwd EY13.07%
FCF(TTM)3.74
FCFY1.88%
OCF(TTM)4.7
OCFY2.36%
SpS130.66
BVpS129.34
TBVpS19.01
PEG (NY)N/A
PEG (5Y)0.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.27% | ||
| ROE | 13.49% | ||
| ROCE | 5.2% | ||
| ROIC | 3.88% | ||
| ROICexc | 4.03% | ||
| ROICexgc | 5.22% | ||
| OM | 20.14% | ||
| PM (TTM) | 13.35% | ||
| GM | N/A | ||
| FCFM | 2.86% |
ROA(3y)3.19%
ROA(5y)3.43%
ROE(3y)14.36%
ROE(5y)15.89%
ROIC(3y)3.76%
ROIC(5y)4.34%
ROICexc(3y)10.87%
ROICexc(5y)12.89%
ROICexgc(3y)110.04%
ROICexgc(5y)160.56%
ROCE(3y)5.04%
ROCE(5y)5.81%
ROICexcg growth 3Y-77.85%
ROICexcg growth 5Y3.06%
ROICexc growth 3Y-48.2%
ROICexc growth 5Y2.75%
OM growth 3Y-17.09%
OM growth 5Y-2.7%
PM growth 3Y-14.2%
PM growth 5Y-2.84%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.54 | ||
| Debt/FCF | 87.76 | ||
| Debt/EBITDA | 9.12 | ||
| Cap/Depr | 9.92% | ||
| Cap/Sales | 0.74% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 13.06% | ||
| Profit Quality | 21.45% | ||
| Current Ratio | 2.05 | ||
| Quick Ratio | 2.05 | ||
| Altman-Z | 0.87 |
F-Score4
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)10.41%
Cap/Depr(5y)9.08%
Cap/Sales(3y)0.8%
Cap/Sales(5y)0.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.2%
EPS 3Y-9.8%
EPS 5Y12.37%
EPS Q2Q%5.91%
EPS Next Y-4%
EPS Next 2Y-0.63%
EPS Next 3Y2.14%
EPS Next 5YN/A
Revenue 1Y (TTM)3.84%
Revenue growth 3Y-2.52%
Revenue growth 5Y10%
Sales Q2Q%-1.31%
Revenue Next Year-7.27%
Revenue Next 2Y-4%
Revenue Next 3Y-2.45%
Revenue Next 5YN/A
EBIT growth 1Y20.18%
EBIT growth 3Y-19.18%
EBIT growth 5Y7.03%
EBIT Next Year-4.96%
EBIT Next 3Y-0.99%
EBIT Next 5YN/A
FCF growth 1Y-84.42%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-81.05%
OCF growth 3Y-86.19%
OCF growth 5YN/A