VICTORY CAPITAL HOLDING - A (NASDAQ:VCTR) – A Potentially Undervalued Stock with Strong Fundamentals

VICTORY CAPITAL HOLDING - A (NASDAQ:VCTR) was identified by our stock screener as a decent value stock, combining solid profitability, financial health, and reasonable growth at an attractive valuation. The company’s fundamentals suggest it may be trading below its intrinsic value, making it a candidate for value investors.

Valuation (Score: 7/10)

• Price/Earnings (P/E) Ratio: At 14.63, VCTR trades below the S&P 500 average (27.48) and in line with its industry peers.
• Forward P/E: 10.22, indicating expectations of earnings growth.
• Enterprise Value/EBITDA: The stock is cheaper than 86.7% of its industry peers based on this metric.
• PEG Ratio: A low PEG suggests the stock is reasonably priced relative to its expected earnings growth.

Profitability (Score: 9/10)

• Return on Equity (ROE): 25.76%, outperforming 93% of industry peers.
• Operating Margin: 49.13%, well above the industry average.
• Profit Margin: 32.88%, ranking in the top quartile of its sector.
• Consistent profitability over the past five years with positive cash flows.

Financial Health (Score: 7/10)

• Altman-Z Score: 3.42, indicating low bankruptcy risk.
• Debt/FCF Ratio: A manageable 2.76, better than 80% of competitors.
• Debt/Equity: 0.84, slightly above ideal but in line with industry standards.

Growth (Score: 6/10)

• Revenue Growth: Expected to grow at 19.71% annually in the coming years.
• EPS Growth: Forecasted at 16.43%, an acceleration from past performance.
• Dividend Growth: A strong 70.54% annual increase, though sustainability should be monitored.

Our Decent Value Stocks screener lists more stocks with similar characteristics.
For a deeper dive, review the full fundamental report on VCTR.

Disclaimer

This is not investment advice. The observations here are based on current data, but investors should conduct their own research before making decisions.