VIRTUS INVESTMENT PARTNERS (VRTS) Stock Fundamental Analysis
NYSE:VRTS - US92828Q1094 - Common Stock
200.26 USD
+11.21 (+5.93%)
200.26 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to VRTS. VRTS was compared to 237 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 has a decent growth rate and is not valued too expensively. Finally VRTS also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year VRTS was profitable.
VRTS had a positive operating cash flow in the past year.
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
VRTS has a Return On Assets (3.27%) which is in line with its industry peers.
VRTS has a better Return On Equity (13.49%) than 75.95% of its industry peers.
With a Return On Invested Capital value of 3.88%, VRTS perfoms like the industry average, outperforming 49.37% of the companies in the same industry.
VRTS had an Average Return On Invested Capital over the past 3 years of 3.76%. This is below the industry average of 7.69%.
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.
With a Operating Margin value of 20.14%, VRTS perfoms like the industry average, outperforming 42.19% of the companies in the same industry.
VRTS's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.14% | ||
| 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
VRTS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, VRTS has more shares outstanding
Compared to 1 year ago, VRTS has a worse debt to assets ratio.
2.2 Solvency
VRTS has an Altman-Z score of 0.86. 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 of 0.86. This is comparable to the rest of the industry: VRTS outperforms 48.95% of its industry peers.
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.
With a Debt to FCF ratio value of 87.76, VRTS perfoms like the industry average, outperforming 40.93% of the companies in the same industry.
VRTS has a Debt/Equity ratio of 2.54. This is a high value indicating a heavy dependency on external financing.
VRTS has a worse Debt to Equity ratio (2.54) than 81.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.54 | ||
| Debt/FCF | 87.76 | ||
| Altman-Z | 0.86 |
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.
The Current ratio of VRTS (2.05) is better than 70.04% of its industry peers.
VRTS has a Quick Ratio of 2.05. This indicates that VRTS is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.05, VRTS is doing good in the industry, outperforming 70.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.05 | ||
| Quick Ratio | 2.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.82% 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 0.99% in the past year.
VRTS shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.00% yearly.
EPS 1Y (TTM)8.82%
EPS 3Y-9.8%
EPS 5Y12.37%
EPS Q2Q%-4.29%
Revenue 1Y (TTM)0.99%
Revenue growth 3Y-2.52%
Revenue growth 5Y10%
Sales Q2Q%-5.91%
3.2 Future
VRTS is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.44% yearly.
The Revenue is expected to decrease by -0.82% on average over the next years.
EPS Next Y-2%
EPS Next 2Y1.31%
EPS Next 3Y3.44%
EPS Next 5YN/A
Revenue Next Year-5.61%
Revenue Next 2Y-1.58%
Revenue Next 3Y-0.82%
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.
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
A Price/Earnings ratio of 7.59 indicates a rather cheap valuation of VRTS.
89.45% of the companies in the same industry are more expensive than VRTS, based on the Price/Earnings ratio.
VRTS is valuated cheaply when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.40, which indicates a rather cheap valuation of VRTS.
Based on the Price/Forward Earnings ratio, VRTS is valued cheaply inside the industry as 91.56% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.82, VRTS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.59 | ||
| Fwd PE | 7.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VRTS is valued cheaper than 81.86% of the companies in the same industry.
VRTS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.52 | ||
| EV/EBITDA | 13.83 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.61
EPS Next 2Y1.31%
EPS Next 3Y3.44%
5. Dividend
5.1 Amount
VRTS has a Yearly Dividend Yield of 4.84%, which is a nice return.
Compared to an average industry Dividend Yield of 7.61, VRTS has a dividend in line with its industry peers.
VRTS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.84% |
5.2 History
The dividend of VRTS is nicely growing with an annual growth rate of 17.66%!
VRTS has been paying a dividend for at least 10 years, so it has 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 2Y1.31%
EPS Next 3Y3.44%
200.26
+11.21 (+5.93%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners83.91%
Inst Owner Change-0.51%
Ins Owners5.69%
Ins Owner Change3.05%
Market Cap1.38B
Analysts46.67
Price Target198.65 (-0.8%)
Short Float %1.98%
Short Ratio1.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.84% |
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)15.58%
PT rev (3m)15.58%
EPS NQ rev (1m)0.77%
EPS NQ rev (3m)0.25%
EPS NY rev (1m)0%
EPS NY rev (3m)2.08%
Revenue NQ rev (1m)1.25%
Revenue NQ rev (3m)1.25%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.59 | ||
| Fwd PE | 7.4 | ||
| P/S | 1.53 | ||
| P/FCF | 53.52 | ||
| P/OCF | 42.58 | ||
| P/B | 1.55 | ||
| P/tB | 10.54 | ||
| EV/EBITDA | 13.83 |
EPS(TTM)26.4
EY13.18%
EPS(NY)27.05
Fwd EY13.51%
FCF(TTM)3.74
FCFY1.87%
OCF(TTM)4.7
OCFY2.35%
SpS130.66
BVpS129.34
TBVpS19.01
PEG (NY)N/A
PEG (5Y)0.61
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 | 0.86 |
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)8.82%
EPS 3Y-9.8%
EPS 5Y12.37%
EPS Q2Q%-4.29%
EPS Next Y-2%
EPS Next 2Y1.31%
EPS Next 3Y3.44%
EPS Next 5YN/A
Revenue 1Y (TTM)0.99%
Revenue growth 3Y-2.52%
Revenue growth 5Y10%
Sales Q2Q%-5.91%
Revenue Next Year-5.61%
Revenue Next 2Y-1.58%
Revenue Next 3Y-0.82%
Revenue Next 5YN/A
EBIT growth 1Y20.18%
EBIT growth 3Y-19.18%
EBIT growth 5Y7.03%
EBIT Next Year-2.18%
EBIT Next 3Y-0.19%
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