VIRTUS INVESTMENT PARTNERS (VRTS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:VRTS - US92828Q1094 - Common Stock
165.91 USD
-0.34 (-0.2%)
165.91 USD
0 (0%)
VRTS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 237 industry peers in the Capital Markets industry. The financial health of VRTS is average, but there are quite some concerns on its profitability. VRTS is cheap, but on the other hand it scores bad on growth. VRTS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- VRTS had positive earnings in the past year.
- VRTS had a positive operating cash flow in the past year.
- In the past 5 years VRTS has always been profitable.
- Of the past 5 years VRTS 4 years had a positive operating cash flow.
1.2 Ratios
- VRTS's Return On Assets of 3.49% is in line compared to the rest of the industry. VRTS outperforms 56.54% of its industry peers.
- Looking at the Return On Equity, with a value of 14.83%, VRTS is in the better half of the industry, outperforming 77.22% of the companies in the same industry.
- VRTS's Return On Invested Capital of 3.65% is in line compared to the rest of the industry. VRTS outperforms 51.48% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for VRTS is below the industry average of 7.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.49% | ||
| ROE | 14.83% | ||
| ROIC | 3.65% |
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 (15.51%) which is in line with its industry peers.
- In the last couple of years the Profit Margin of VRTS has declined.
- Looking at the Operating Margin, with a value of 20.37%, VRTS is in line with its industry, outperforming 46.84% of the companies in the same industry.
- VRTS's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.37% | ||
| PM (TTM) | 15.51% | ||
| 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
- Compared to 1 year ago, VRTS has less shares outstanding
- VRTS has more shares outstanding than it did 5 years ago.
- VRTS has a worse debt/assets ratio than last year.
2.2 Solvency
- VRTS has an Altman-Z score of 0.83. This is a bad value and indicates that VRTS is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.83, VRTS is in line with its industry, outperforming 51.05% of the companies in the same industry.
- VRTS has a debt to FCF ratio of 34.80. This is a negative value and a sign of low solvency as VRTS would need 34.80 years to pay back of all of its debts.
- VRTS has a Debt to FCF ratio (34.80) which is in line with its industry peers.
- A Debt/Equity ratio of 2.64 is on the high side and indicates that VRTS has dependencies on debt financing.
- The Debt to Equity ratio of VRTS (2.64) is worse than 80.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.64 | ||
| Debt/FCF | 34.8 | ||
| Altman-Z | 0.83 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- VRTS has a Current Ratio of 2.47. This indicates that VRTS is financially healthy and has no problem in meeting its short term obligations.
- VRTS has a better Current ratio (2.47) than 78.90% of its industry peers.
- A Quick Ratio of 2.47 indicates that VRTS has no problem at all paying its short term obligations.
- The Quick ratio of VRTS (2.47) is better than 78.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 2.47 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 4.81% over the past year.
- The Earnings Per Share has been growing by 12.37% on average over the past years. This is quite good.
- The Revenue has decreased by -1.09% in the past year.
- The Revenue has been growing by 10.00% on average over the past years. This is quite good.
EPS 1Y (TTM)4.81%
EPS 3Y-9.8%
EPS 5Y12.37%
EPS Q2Q%-3.32%
Revenue 1Y (TTM)-1.09%
Revenue growth 3Y-2.52%
Revenue growth 5Y10%
Sales Q2Q%-4.11%
3.2 Future
- The Earnings Per Share is expected to grow by 2.85% 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 -1.19% on average per year.
EPS Next Y-2.53%
EPS Next 2Y-1.15%
EPS Next 3Y2.85%
EPS Next 5YN/A
Revenue Next Year-5.12%
Revenue Next 2Y-3.16%
Revenue Next 3Y-1.19%
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
- The Price/Earnings ratio is 6.34, which indicates a rather cheap valuation of VRTS.
- 85.23% of the companies in the same industry are more expensive than VRTS, based on the Price/Earnings ratio.
- VRTS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.39.
- A Price/Forward Earnings ratio of 6.44 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 91.14% of the companies listed in the same industry.
- VRTS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.34 | ||
| Fwd PE | 6.44 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VRTS indicates a rather cheap valuation: VRTS is cheaper than 83.97% of the companies listed in the same industry.
- 67.93% of the companies in the same industry are more expensive than VRTS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.1 | ||
| EV/EBITDA | 13.04 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.51
EPS Next 2Y-1.15%
EPS Next 3Y2.85%
5. Dividend
5.1 Amount
- VRTS has a Yearly Dividend Yield of 5.67%, which is a nice return.
- Compared to an average industry Dividend Yield of 5.88, VRTS pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, VRTS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.67% |
5.2 History
- The dividend of VRTS is nicely growing with an annual growth rate of 17.66%!
- 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 47.12% 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.
DP47.12%
EPS Next 2Y-1.15%
EPS Next 3Y2.85%
VIRTUS INVESTMENT PARTNERS / VRTS FAQ
Can you provide the ChartMill fundamental rating for VIRTUS INVESTMENT PARTNERS?
ChartMill assigns a fundamental rating of 4 / 10 to VRTS.
Can you provide the valuation status for VIRTUS INVESTMENT PARTNERS?
ChartMill assigns a valuation rating of 7 / 10 to VIRTUS INVESTMENT PARTNERS (VRTS). This can be considered as Undervalued.
What is the profitability of VRTS stock?
VIRTUS INVESTMENT PARTNERS (VRTS) has a profitability rating of 3 / 10.
Can you provide the financial health for VRTS stock?
The financial health rating of VIRTUS INVESTMENT PARTNERS (VRTS) is 4 / 10.
How sustainable is the dividend of VIRTUS INVESTMENT PARTNERS (VRTS) stock?
The dividend rating of VIRTUS INVESTMENT PARTNERS (VRTS) is 8 / 10 and the dividend payout ratio is 47.12%.