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 4 out of 10 in our fundamental rating. VRTS was compared to 225 industry peers in the Capital Markets industry. VRTS may be in some trouble as it scores bad on both profitability and health. VRTS scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally 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.
Each year in the past 5 years VRTS has been profitable.
In multiple years VRTS reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.31%, VRTS is in line with its industry, outperforming 53.42% of the companies in the same industry.
The Return On Equity of VRTS (13.42%) is better than 71.69% of its industry peers.
The Return On Invested Capital of VRTS (3.75%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 13.42% | ||
| ROIC | 3.75% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
VRTS has a Profit Margin of 13.43%. This is comparable to the rest of the industry: VRTS outperforms 45.66% of its industry peers.
VRTS's Profit Margin has declined in the last couple of years.
VRTS's Operating Margin of 18.73% is in line compared to the rest of the industry. VRTS outperforms 40.18% of its industry peers.
In the last couple of years the Operating Margin of VRTS has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.73% | ||
| PM (TTM) | 13.43% | ||
| 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
There is no outstanding debt for VRTS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
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.
With a Altman-Z score value of 0.83, VRTS perfoms like the industry average, outperforming 46.58% of the companies in the same industry.
VRTS has a debt to FCF ratio of 20.57. This is a negative value and a sign of low solvency as VRTS would need 20.57 years to pay back of all of its debts.
VRTS has a Debt to FCF ratio (20.57) which is comparable to the rest of the industry.
A Debt/Equity ratio of 2.45 is on the high side and indicates that VRTS has dependencies on debt financing.
VRTS has a worse Debt to Equity ratio (2.45) than 80.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.45 | ||
| Debt/FCF | 20.57 | ||
| Altman-Z | 0.83 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
VRTS has a Current Ratio of 1.58. This is a normal value and indicates that VRTS is financially healthy and should not expect problems in meeting its short term obligations.
VRTS has a Current ratio of 1.58. This is in the better half of the industry: VRTS outperforms 64.38% of its industry peers.
VRTS has a Quick Ratio of 1.58. This is a normal value and indicates that VRTS is financially healthy and should not expect problems in meeting its short term obligations.
VRTS's Quick ratio of 1.58 is fine compared to the rest of the industry. VRTS outperforms 64.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.09% 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 been growing slightly by 7.30% in the past year.
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)20.09%
EPS 3Y-9.8%
EPS 5Y12.37%
EPS Q2Q%22.75%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y-2.52%
Revenue growth 5Y10%
Sales Q2Q%9.64%
3.2 Future
The Earnings Per Share is expected to grow by 8.25% on average over the next years. This is quite good.
Based on estimates for the next years, VRTS will show a small growth in Revenue. The Revenue will grow by 2.04% on average per year.
EPS Next Y7.3%
EPS Next 2Y7.8%
EPS Next 3Y8.25%
EPS Next 5YN/A
Revenue Next Year0.25%
Revenue Next 2Y1.68%
Revenue Next 3Y2.04%
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.
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 6.92, which indicates a rather cheap valuation of VRTS.
Based on the Price/Earnings ratio, VRTS is valued cheaply inside the industry as 89.95% of the companies are valued more expensively.
VRTS is valuated cheaply when we compare the Price/Earnings ratio to 29.62, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 6.45, which indicates a rather cheap valuation of VRTS.
94.52% of the companies in the same industry are more expensive than VRTS, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, VRTS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.92 | ||
| Fwd PE | 6.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VRTS is valued cheaply inside the industry as 82.19% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, VRTS is valued a bit cheaper than 67.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.1 | ||
| EV/EBITDA | 13.73 |
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.
PEG (NY)0.95
PEG (5Y)0.56
EPS Next 2Y7.8%
EPS Next 3Y8.25%
5. Dividend
5.1 Amount
VRTS has a Yearly Dividend Yield of 4.94%, which is a nice return.
In the last 3 months the price of VRTS has falen by -25.54%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
VRTS's Dividend Yield is comparable with the industry average which is at 10.21.
VRTS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.94% |
5.2 History
On average, the dividend of VRTS grows each year by 37.19%, which is quite nice.
VRTS has been paying a dividend for at least 10 years, so it has a reliable track record.
VRTS has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)37.19%
Div Incr Years7
Div Non Decr Years10
5.3 Sustainability
46.88% of the earnings are spent on dividend by VRTS. This is a bit on the high side, but may be sustainable.
VRTS's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP46.88%
EPS Next 2Y7.8%
EPS Next 3Y8.25%
NYSE:VRTS (2/24/2025, 2:58:00 PM)
182.37
+2.1 (+1.16%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners83.2%
Inst Owner Change-93.7%
Ins Owners6.07%
Ins Owner Change-0.07%
Market Cap1.28B
Analysts46.67
Price Target221.85 (21.65%)
Short Float %1.03%
Short Ratio1.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.94% |
Yearly Dividend7.3
Dividend Growth(5Y)37.19%
DP46.88%
Div Incr Years7
Div Non Decr Years10
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.64%
Min EPS beat(2)-3.1%
Max EPS beat(2)-0.18%
EPS beat(4)1
Avg EPS beat(4)-1.15%
Min EPS beat(4)-3.1%
Max EPS beat(4)0.56%
EPS beat(8)3
Avg EPS beat(8)-0.45%
EPS beat(12)4
Avg EPS beat(12)-1.67%
EPS beat(16)7
Avg EPS beat(16)0.82%
Revenue beat(2)0
Avg Revenue beat(2)-3.27%
Min Revenue beat(2)-3.38%
Max Revenue beat(2)-3.17%
Revenue beat(4)0
Avg Revenue beat(4)-3.63%
Min Revenue beat(4)-4.16%
Max Revenue beat(4)-3.17%
Revenue beat(8)1
Avg Revenue beat(8)-1.52%
Revenue beat(12)5
Avg Revenue beat(12)3.13%
Revenue beat(16)9
Avg Revenue beat(16)6.44%
PT rev (1m)-10.22%
PT rev (3m)-6.25%
EPS NQ rev (1m)-2.49%
EPS NQ rev (3m)-2.49%
EPS NY rev (1m)-7.51%
EPS NY rev (3m)-7.95%
Revenue NQ rev (1m)-0.99%
Revenue NQ rev (3m)-0.95%
Revenue NY rev (1m)-4.98%
Revenue NY rev (3m)-4.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.92 | ||
| Fwd PE | 6.45 | ||
| P/S | 1.44 | ||
| P/FCF | 12.1 | ||
| P/OCF | 11.44 | ||
| P/B | 1.44 | ||
| P/tB | 12.4 | ||
| EV/EBITDA | 13.73 |
EPS(TTM)26.36
EY14.45%
EPS(NY)28.28
Fwd EY15.51%
FCF(TTM)15.08
FCFY8.27%
OCF(TTM)15.94
OCFY8.74%
SpS126.5
BVpS126.64
TBVpS14.71
PEG (NY)0.95
PEG (5Y)0.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.31% | ||
| ROE | 13.42% | ||
| ROCE | 5.02% | ||
| ROIC | 3.75% | ||
| ROICexc | 3.98% | ||
| ROICexgc | 5.32% | ||
| OM | 18.73% | ||
| PM (TTM) | 13.43% | ||
| GM | N/A | ||
| FCFM | 11.92% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/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
F-Score5
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.45 | ||
| Debt/FCF | 20.57 | ||
| Debt/EBITDA | 9.2 | ||
| Cap/Depr | 8.6% | ||
| Cap/Sales | 0.68% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 47.28% | ||
| Profit Quality | 88.73% | ||
| Current Ratio | 1.58 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z | 0.83 |
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)20.09%
EPS 3Y-9.8%
EPS 5Y12.37%
EPS Q2Q%22.75%
EPS Next Y7.3%
EPS Next 2Y7.8%
EPS Next 3Y8.25%
EPS Next 5YN/A
Revenue 1Y (TTM)7.3%
Revenue growth 3Y-2.52%
Revenue growth 5Y10%
Sales Q2Q%9.64%
Revenue Next Year0.25%
Revenue Next 2Y1.68%
Revenue Next 3Y2.04%
Revenue Next 5YN/A
EBIT growth 1Y16.51%
EBIT growth 3Y-19.18%
EBIT growth 5Y7.03%
EBIT Next Year12.7%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-47.12%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-46.12%
OCF growth 3YN/A
OCF growth 5YN/A